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Conference Speakers Discuss Embracing the AI Revolution

By:
Emma Slack-Jorgensen
Published Date:
Jan 17, 2025

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The “AI for Real” session at the Foundation for Accounting Education (FAE) 47th Annual Nonprofit Conference offered a deep dive into how artificial intelligence (AI) is transforming the nonprofit financial management landscape.

The speakers were Eleanor Hume, a regional director, and Edwin Harvey, director in AI solutions and training, at Your Part-Time Controller (YPTC). The session explored the potential challenges and practical applications of AI in accounting and how it can be used responsibly.

One key theme was understanding how AI differs from traditional automation. Harvey explained that automation exists on a spectrum: “there’s a spectrum right now from traditional automation, schools and robotic process automation…artificial intelligence is actually able to fully empower to act within the world and writing certain rules at the same time." Harvey stated "if we think about traditional AI, fundamentally it’s about computers following rules that were written by people, right? It can be very powerful but it’s limited by the degree of complexity of the rules that people can write."

Generative AI, however, goes beyond pre-written rules. “The big leap into generative AI is when we allow computers to start writing their own rules. If you’ve heard the term “machine learning” that’s what it means…the results are a very special kind of algorithm or a model of an artificial neural network. These algorithms are designed to mimic the organic neural networks in the human brain.” 

By analyzing vast datasets, generative AI identifies patterns and creates its own decision-making processes, mimicking human-like thought. This capability allows it to tackle complex tasks, such as analyzing financial data and drafting detailed insights. 

During the panel, the speakers demonstrated YPTC’s AI-powered reporting tool. This tool combines traditional automation and generative AI to help consultants produce financial reports efficiently. Harvey explained, “YPTC is using generative AI to help our staff serve their clients, specifically by helping our outsourced CFOs and controllers to supplement and make efficient the work they have always been doing for our clients, which is to deliver not only accurate, timely financial reports, but also to include with those reports, analysis, recommendations and commentary. 

By integrating AI into their workflow, YPTC allows consultants to provide not just accurate financial statements but also meaningful analysis and actionable recommendations for their clients. 

Panelists also discussed the next frontier in the technology. They introduced the concept of “agentic AI,” which Harvey described as a step beyond generative AI. “It’s not only a closed algorithm where you can give it an input and out comes a response, but that response can now include outreach to other tools—it’s the ability to act or have agency in the world in some way.”

In accounting, this means AI can analyze financial data, run Python scripts and deliver actionable insights, all while ensuring human oversight. Harvey illustrated its potential with an example, “Imagine you ask an AI for yesterday’s weather in New York, it’s training data may have ended two months before…so anything after that moment is unknown to the model. But if you allow the model to reach out to the internet and help answer your question, it can actually get the answer.”

Despite the advantages of and advancements in AI, Harvey and Hume also acknowledged the risks associated with the technology, including data privacy and biased outputs. “Initially OpenAI was certainly taking every prompt that people put into it and using that for training data,” Harvey noted. Yet, he reassured attendees that modern enterprise-grade models, such as GPT-4, offer robust security features, including encryption and compliance with standards like SOC 2. 

The session is a reminder of the transformative power of AI, particularly in fields like accounting where efficiency and precision are paramount. From automating reports to analyzing data, AI has the potential to redefine how accountants approach their work. As Hume said, “AI is more than just a new tool, it’s a new way of using tools. It’s less about things that the AI is doing itself, but more about the way in which it can understand our requests and conversational engagement in ways that factor in all of the context of human discussion and conversation and history. Understanding what they are, but to also be an expert in using all these other tools to get us the information, it's a really powerful tool.” 

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