Much has been made of artificial intelligence’s reputation as a job killer.
In fact, about 20% of U.S. career professionals have jobs that are “highly exposed” to AI, according to Pew Research.
“Jobs with a high level of exposure to AI tend to be in higher-paying fields where a college education and analytical skills can be a plus,’ the study noted. ‘Because AI could be used either to replace or complement what workers do, ‘it’s not known exactly which or how many jobs are in peril,”
Perhaps more realistically, AI will pitch in for industries and sectors where the need for data-savvy labor is paramount.
Exhibit “A” is the accounting sector, where 84% of CFOs report a “talent shortage” in their accounting departments and in their finance teams. That’s the takeaway from a new report by Avalara, a tax compliance software company.
The survey also revealed that 47% of CFOs “believe employee burnout around hours and menial tasks, as well as accounting and finance professionals changing careers, were notable factors for the diminishing talent pool,” the study said.
Correspondingly, 89% of CFOs surveyed plan to invest in artificial intelligence (AI) to streamline finance functions, Avalara noted.
The Need for Speed – and Efficiency
So why is AI being counted on to fill the breach and beef up company finance departments?
For starters, it’s a technology that’s ideally suited for the accounting/finance sector.
“Finance leaders must balance their company’s business dynamics while navigating unpredictable waters, given the pressures of high inflation, growing talent gaps, and concerns over an impending recession,” says Avalara CFO Ross Tennenbaum.“The rise of artificial intelligence will help finance leaders around the world find new ways to drive savings and help make their current teams more energized by streamlining and automating repetitive accounting and financial tasks to help manage the accountant talent shortage gap that the majority of CFOs are facing.”
What’s more, as nearly half (49%) of CFOs report the need for Financial Planning and Analysis (FP&A) expertise within their organizations, they told Avalara their companies “may lack the headcount for forward-looking financial operations.”
There’s a reason for that, too. Two-thirds (63%) of CFOs believe there’s a lack of experienced talent, “a view supported by over half (54%) of respondents that consider today’s shortage a result of fewer people majoring in finance functions,” the study noted.
Company finance executives also say that time is running out and they may have no choice but to turn to AI to handle accounting functions.
“The accounting profession continues to experience historic challenges in attracting and retaining qualified staff, and automation has risen to the fore in helping to address these gaps and help firms scale services,” says WithumSmith+Brown managing director of advisory services Jim Bourke.
Bourke says Withum is “actively evaluating how staff can leverage more AI-infused technologies to help streamline and automate routine accounting tasks, focus on the bigger picture, better serve clients, and manage reduced headcounts.”
“Already, we can see the emerging technology help our staff focus effort where it’s needed, on client-facing advisory and forward planning, and we see where AI will play an essential role in areas like financial reporting, compliance, audit, and data analysis,” he says.
Brian O’Connell, a former Wall Street bond trader and best-selling author, is a prominent figure in the finance industry. With a substantial background as an ex-Wall Street trader, he has authored two best-selling books: ‘The 401k Millionaire’ and ‘CNBC’s Creating Wealth’, demonstrating his profound knowledge of finance and investing.
Brian is also a finance and business writer for esteemed national platforms and publications, including CNN, TheStreet.com, CBS News, The Wall Street Journal, U.S. News & World Report, Forbes, and Fox News.
