The Growing Influence of AI on the Accounting Industry 

The potential of artificial intelligence (AI) in the accounting field is very exciting. Big companies like PwC and EY are using AI technology in their auditing and financial review processes to spot unusual transactions or inconsistencies. This technology could eventually carry out more thorough auditing analyses, providing investors and readers of financial statements with a clearer and more detailed view of a company’s finances at a lower cost. 

Accounting software providers are also adding AI to their products. For example, SAP recently launched an AI assistant named Joule. Joule aims to give customers helpful information and support while they use SAP applications. It can assist with creating job descriptions and interview questions, analyzing financial data, predicting sales trends, and helping with decision-making. 

In a keynote speech, CTO Larry Ellison and Oracle founder mentioned that his company’s cloud services will use AI to resolve customer service problems more quickly and help reduce manual work in healthcare using voice instructions. 

ERP maker NetSuite is also adding AI features to its financial products. The company introduced a generative AI tool called NetSuite Text Enhance, which can be used in HR, supply chain, finance, and sales. This tool creates content for any text field based on a few initial words that outline the intent, helping teams boost productivity by using AI to generate relevant drafts that can be swiftly reviewed, edited, and approved. 

Here are a few examples of platforms and accounting products beginning to use generative AI. These developments are also seen with major providers such as Epicor, Sage, Microsoft Dynamics, QuickBooks, and Xero, all making significant advancements. However, it is important to remember that these technologies are still in their early stages. Words like “could,” “will,” “building,” and “promises” often appear in statements, press releases, and news articles. This indicates that much of this technology is still in development and not yet fully ready for widespread use. 

Why is this the case? For three main reasons: 

Accuracy and Reliability Issues: AI tools for accounting still have a long way to go. A recent survey compared ChatGPT with humans in solving accounting problems, and the AI did not perform well, scoring much lower than humans. The AI models have difficulty with complex accounting problems that require a lot of math because their results are based on probability rather than accuracy. 

Limited Technical Capabilities: Even with the excitement about AI’s “transformative impact,” new AI features in accounting applications are not widely highlighted. Research reports like Gartner’s quarterly “Magic Quadrant” rarely mention AI features in major accounting platforms, suggesting that these functionalities are not yet making a significant difference to accountants. 

Vendor Acknowledgments: Even software vendors admit their AI offerings are not fully developed. For instance, PwC’s spokespeople have acknowledged that their AI technology is still in the exploratory phase. Analysts of SAP’s Joule say it “has promise,” but implementing it will “take time.” NetSuite’s press releases reveal that most new features have little to do with AI. 

This does not imply that AI will fail to deliver on its potential. However, the AI capabilities highlighted by major accounting and ERP providers are still in progress. It may take a few more years for these features to be fully developed and seamlessly integrated into financial operations to the point where they become dependable. 

Currently, financial experts and accountants should stay alert and prepared. It is essential to organize databases, participate in vendor events, request demonstrations, and understand how these tools can enhance efficiency and reduce costs. By doing this, we will be well-prepared when these tools are fully developed.