A report released by the Association of Chartered Certified Accountants (ACCA) on Sept. 25 explores the state of artificial intelligence (AI) adoption in the accounting industry.
It also offers a timely examination of how AI affects the field and what professionals need to know to stay ahead.
One thing is evident in the report: size determines how much AI is used in an organization. The report studied the implementation of AI over the most recent financial year. Within organizations with revenues of over $1 billion, more than a quarter invested over $500,000 in AI projects in just the past year.
Size also dictates how much AI is used in organizations for certain tasks. The survey found that AI adoption is not uniform. While over 40% of large corporates use AI for data analysis and reporting, less than 30% of sole practitioners and small or medium-sized practices have done the same.
In a release, Alistair Brisbourne, report author and head of technology research at ACCA, said: "The survey revealed that three-quarters of all respondents expect to increase their AI investments in the coming year. This surge in commitment is not merely about keeping pace with technological trends; it reflects a growing recognition of AI's potential to drive real business value in the accounting sphere."
Various industries are zeroing in on different uses of AI initiatives. These activities include elevating the quality of products and services, improving the efficiency of existing processes, upskilling employees, growing organizational capabilities, refining decision-making, driving competitive advantage, and lowering operational costs.
The report also examines different AI technologies, such as machine learning, computer vision, natural language processing, and generative AI, and how organizations leverage these capabilities.
According to the report, careful consideration should be given to the type of AI technology and its application. For example, applications with predictive decision-making capabilities may have inherent flaws. While GenAI might have valuable uses within strict and limited circumstances, it should only be utilized with serious thought about possible inaccuracies, biases, or misleading references that might cause reputational harm.
Despite the various types of technology that could accomplish many finance-related tasks, the report said that AI is a tool to enhance the skills of accounting professionals instead of replacing them. In fact, AI in accounting and insurance reimagines the finance roles where professionals are focused on analysis and interpretation, strategy, and high-level decision-making.
The report highlights finance’s key role in shaping AI and data strategies across organizations. Finance teams are taking on more advisory roles (56%) or even ownership (20%) of these strategies, positioning them to champion a more collaborative approach to AI adoption.
As data becomes a central element of organizational success, finance units are well-positioned to ensure that AI initiatives align with business objectives.
The report suggested that finance departments can lead to the creation of flexible and collaborative models for data management and AI Implementation that lean toward co-ownership roles with other units. Collaboration is key to identifying AI innovation opportunities and ensuring broad organizational support for AI initiatives.