Impact of Artificial

Intelligence and Machine

Learning on the
Accounting Profession

11/5/2023 Rahmat Ullah ACA 1

 Agenda
• Introduction

• Current State of Accounting

• AI and ML in Accounting

• Benefits of AI and ML

• Challenges and Solutions

• Case Studies

• Future Outlook

• Job Opportunities

• Preparing for Change

• Q&A

• References

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 Current State of
Accounting
• Accounting has traditionally played a pivotal role in
financial reporting, compliance, and auditing
• Did you know that accountants spend up to 2/5 (39%)
of their time on manual data entry and reconciliations?
• AI and ML have the potential to revolutionize the
accounting profession by automating many of the
manual and repetitive tasks that accountants currently
perform.

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 AI and ML in
Accounting
• Artificial Intelligence and Machine Learning are
revolutionizing accounting.
• 95% chance of job loss due to automation according
to an NPR calculator, but Deloitte suggests that
technology will also create new roles, just as it has in
the past.
• For instance, the use of AI in auditing increased by
38% in the last year alone.

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 Automation and
Efficiency
• AI and ML streamline tasks, reducing errors by 80%-
90%
• This increased efficiency frees up accountants to
focus on higher-value activities
• Automated processes enable real-time data analysis
for more informed decision-making.

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 Benefits of AI and
ML
• The benefits are numerous:
 enhance accuracy
 provide real-time insights
 save costs
 Improve efficiency
 Automate tasks
 Reduce errors
 Enable data-driven decision making
 Provide new insights and perspectives

• AI algorithms can identify patterns and anomalies in vast datasets,

aiding in early detection and prevention of potential financial fraud

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 Data Analysis
• Fast data checks by accountants.
• Big data? No problem.
• ML tools work super fast.
• Humans vs ML? ML wins by 1000x.

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 Fraud Detection
• AI and ML can detect anomalies and patterns in financial data, making
it easier to identify fraud.
• In 2022, AI-based fraud detection saved companies over $10 billion.

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Real facts and
numbers
A 2021 survey by the Institute
A 2022 report by McKinsey &
of Management Accountants
Company predicts that AI
found that 84% of
and ML could automate up to
accounting professionals
45% of the tasks currently
believe that AI and ML will
performed by accountants
have a significant impact on
and auditors
the accounting profession

A study by PwC found that

A 2023 study by Deloitte
found that AI and ML are
already being used by 62% of
accounting firms
80% of CFOs believe that AI
and ML will have a significant
impact on their ability to
make better business
decisions

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 Challenges and
Solutions
• Data Security: No longer a luxury, but a necessity.
• Cyber threats are constantly evolving, requiring
dynamic solutions.
• Artificial Intelligence can continuously learn and adapt
to new threats, offering timely solutions.
• Complexity of Systems vs Holistic AI Monitoring
• Regulatory Compliance vs Automated Compliance
Check with AI

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 Future Outlook
• The future is bright
• Boosting productivity through automation and generative AI
• AI's Transformative Potential: Job Creation and Economic Growth
in the Next Decade
• Automated Processes & Enhanced Accuracy/Efficiency
• Fraud Detection
• Personalized Client Interaction
• Continuous Learning

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 Job Opportunities
• AI creates new job opportunities within accounting, such
as AI auditors, data analysts, Cybersecurity, etc.
• One study estimates that AI will create between 2.3 million
and 20 million jobs over the next decade. Additionally,
reports suggest that AI and machine learning will drive
future economic growth and generate trillions of dollars in
economic value.
• It is essential for accountants to adapt to these changing
roles

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 Preparing for
Change
 Identify the areas of your work that can be automated.
 Continuous learning and adaptability are key to staying relevant.
 Network with other professionals who are using AI and ML in
accounting.
 Staying updated on regulatory changes and technological
advancements is crucial.
 Participating in workshops and seminars can enhance
understanding and application of new tools and techniques.
 Embracing a proactive mindset will ensure accountants remain
indispensable in the AI era.

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 AI and ML are at the forefront of
modern innovations, significantly
impacting the accounting sector

While these technologies offer

Conclusion transformative benefits, they also
bring unique challenges to the table

As accountants, it is crucial to
embrace this technological
transformation, upskill, and adapt to
the changing landscape

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 INSTITUTE OF MCKINSEY & COMPANY DELOITTE
MANAGEMENT
ACCOUNTANTS

References

AMERICAN INSTITUTE OF CHARTERED ASSOCIATION OF

CPAS PROFESSIONAL INTERNATIONAL CERTIFIED
ACCOUNTANTS OF PROFESSIONAL
CANADA ACCOUNTANTS

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Additional
Readings
• 1. https://www.icaew.com/technical/technology/artificial-intelligence/artificial-intelligence-articles/how-
artificial-intelligence-will-impact-accounting

• 2. https://www.cpajournal.com/2019/06/19/machine-learning-in-auditing/

• 3. https://www.accountingtoday.com/opinion/ai-and-the-future-of-the-accounting-profession

• 4. https://tax.thomsonreuters.com/blog/the-impact-of-artificial-intelligence-on-the-tax-and-accounting-
profession/

• 5. https://www.ifac.org/knowledge-gateway/preparing-future-ready-professionals/discussion/why-
accountants-must-embrace-machine-learning

• 6. https://ieeexplore.ieee.org/abstract/document/9110603

• 7.https://www.researchgate.net/publication/333728223_HOW_ARTIFICIAL_INTELLIGENCE_IS_CHALLENGIN
G_ACCOUNTING_PROFESSION?enrichId=rgreq-cfa9b4ca949f55ea03c9871062c2742d-
XXX&enrichSource=Y292ZXJQYWdlOzMzMzcyODIyMztBUzo3NjkwNDA5NDM0NDM5NjlAMTU2MDM2NTA1
NzUxMw%3D%3D&el=1_x_2&_esc=publicationCoverPdf

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 Q&A
• I'll now open the floor for questions
• Please feel free to ask any queries you may have

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About Presenter

• LinkedIn Profile: https://www.linkedin.com/in/rahmat-aca/

• Email: rahmat.ullah.ron@gmail.com/rahmatullahcpa@gmail.com

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