How the AI boom is transforming accounting

December 15, 2023 5:07 PM

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The use of artificial intelligence is becoming so common in everyday life that even the accounting profession is embracing the change.

AI innovation is the hot topic at accounting events, the IRS is continuing to roll out chatbots to help individuals with basic tax matters, and the ethics of AI in accounting are being addressed.

Read our round up for more on these and others stories on the rapid rise of AI in the profession.

New state CPA course tackles AI ethics in accounting

The growing use of AI and the emergence of large language models has prompted a number of CPA societies in states around the U.S. to come together to offer a course on the ethics of AI in accounting.

"With widespread AI implementation this year, as well as the introduction of ChatGPT, the time was right to quickly develop a comprehensive course addressing the ethical issues surrounding AI," said Stephanie Peters, president of the Virginia Society of CPAs.

Approved by the National Association of State Boards of Accountancy, the online course is available to accountants as well as other business professionals.

Read more:

State CPA societies offer AI ethics course

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Jakub Porzycki/NurPhoto/Photographer: Jakub Porzycki/Nur

From unknown to unstoppable: the rise of generative AI

Little more than a year ago, the average business person or consumer would have been hard pressed to tell you what generative AI was. Now, research indicates that adoption of the technology is rising fast and shows no sign of slowing down.

A Grant Thornton quarterly survey of CFOs shows that use of generative AI was up to 43% compared to 30% three months prior, with firms "focusing on tech upgrades to deliver ROI," according to analysis by Paul Melville, national managing principal for CFO advisory, in the report.

A KPMG survey of consumers reveals a similar story. "The pace at which consumers have adopted generative AI has been unlike anything we've ever witnessed, with the most beneficial uses evolving daily," said Mark Gibson, global and U.S. technology leader at KPMG.

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Generative AI use growing for both business and consumers

AI innovation leads the conversation at AICPA event

Data-driven insights and workflow automation emerged as the two key themes in AI technology development for accountants at the AICPA Executive Roundtable in late September.

More than 40 leaders in accounting technology spoke at the event, where AI innovation and in particular the potential impact of generative AI on the profession sparked much interest and discussion.

"Nearly every accounting technology provider today is exploring if and how generative AI can be integrated into their existing solutions to address firms' top challenges," said Erik Asgeirsson, CEO of CPA.com and one of the roundtable hosts.

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Insights and workflow automation dominate AI solutions

Chatbot rollout to taxpayers continues for IRS

Using chatbots to help taxpayers manage low-level issues has been so successful since first being introduced by the IRS in January 2023 that the service is extending the process.

Chatbots will now be available to assist individuals who may have underreported on their taxes, offering information on what to do if they receive an IRS notice.

In making the announcement, IRS Commissioner Danny Werfel spoke highly of the technology's ability to help people to "quickly get basic information" and "avoid wait times on the phone."

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IRS expands chatbots to underreporters

IRS proceeds cautiously with use of AI in audits

AI is becoming a powerful tool for the IRS as it increases its scrutiny of large companies and high-earners, but the service will have to be wary in the way it implements the technology, according to Mark Everson, a former IRS commissioner.

"The technology is beneficial to tax administration, but it's got to be used carefully," said Everson. "Big businesses and the wealthy are taking full advantage of technology, so it's understandable the government would seek to do the same thing."

When used judiciously, AI will be particularly useful for auditing the complex returns of big corporations and wealthy individuals, with the service initially targeting 75 large partnerships with an average of more than $10 billion in assets and 1,600 millionaires who owe at least $250,000 in taxes.

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AI in IRS audits could be a game-changer, but comes with pitfalls