Maria Sigacheva discusses how AI is set to transform the accounting landscape, the industry’s readiness, and the importance of skilled professionals in ensuring effective integration.
The rise of artificial intelligence (AI) technology is set to reshape the accountancy landscape significantly, with debates and discussions abounding on its impacts across different professions, including accounting. Maria Sigacheva, an accomplished chartered certified accountant, indirect tax manager at Glencore, board member at the Civil Mediation Council in the UK, and ACCA council candidate, has shared her insights on how AI could transform the domain of accounting and the readiness of the industry for such changes.
The implementation of AI has already begun making strides in the accounting sector by automating tasks like data extraction through Optical Character Recognition (OCR) tools, such as Dext or AutoEntry. These tools, evolving through AI advancements, have streamlined invoice processing, minimised manual data entry, reduced typographical errors, and diminished the risk of lost paperwork. With AI’s continuous learning ability, it can mimic human logic and thus improve efficiency in tasks such as auditing, by analysing extensive datasets swiftly and highlighting potential fraudulent activities or predicting cash flows.
However, Sigacheva emphasises that AI technology, much like any other technological advancement, requires proper supervision and management. The role of accountants is expected to evolve, with an increased focus on guiding AI systems and ensuring the quality and accuracy of the data being processed. Qualified professionals will be essential in training AI systems to create a robust foundation.
Currently, the adoption of AI in accounting is mainly spearheaded by larger firms due to the associated costs, though the potential for smaller, more accessible solutions is expected to grow. According to a 2023 study by Thomson Reuters, the uptake of AI solutions in tax and accounting is still in early stages, with only 5% of firms currently using AI solutions, 6%-9% planning to adopt them soon, 30% considering it, and a significant 60% having no immediate plans to integrate AI.
In the United Kingdom alone, there are currently 3,170 AI companies, generating £10.6 billion in AI-related revenues and focusing notably on sectors such as financial services, legal, computer software, and insurance. Despite this, AI’s contribution to the finance sector sits at a modest 3% compared to the 37% contribution from the computer software industry, according to the “Artificial Intelligence Sector Study” conducted by Perspective Studies in 2023.
Looking forward, Sigacheva is hopeful that AI advancements will lead to increased accuracy and improved judgement in accounting processes over the next 5-10 years. She stresses the need for quality data input and skilled professionals at the helm of AI training to ensure optimal performance.
Accountants are not without support as they navigate this technological transition. The Association of Chartered Certified Accountants (ACCA) is playing a significant role in aiding its members through this change, offering webinars, workshops, and publishing AI guides and research papers. Sigacheva, who is running for the ACCA council in 2024, is passionate about ensuring inclusivity and transparency in AI education within the accounting field.
With regard to trust in AI technology, Sigacheva acknowledges the concerns outlined in the Thomson Reuters research, particularly surrounding issues of accuracy, privacy, confidentiality, and security. Tax professionals have flagged security concerns at a rate of 70%, a critical consideration within the accounting industry. Despite these issues, she believes in the potential of AI to streamline and enhance manual tasks, such as document scanning and report generation, thereby making full use of the technology’s rapid advancements.
In conclusion, while challenges remain, the integration of AI in accounting is poised to transform the industry, with professionals like Maria Sigacheva leading discussions on its potential, readiness, and the pathway to successful adoption.
Source: Noah Wire Services
