Even before the groundbreaking launch of
Of the top three worries surrounding generative AI, models returning nonsensical or inaccurate information to end users, more commonly known as hallucinations, was the biggest, with 85% of respondents saying they were very or somewhat concerned about this risk. Exposing customer data and degradation of client trust and transparency filled out the rest of the top three concerns, at 83% and 81% respectively.
Adolfo Marquez, marketing manager for MBS Accountancy in Fresno, California, said even though his firm has been using AI since last year to assist staff with notetaking and keeping in touch with clients, executives approach the technology with two consistent thoughts: "Will this preserve or impede our relationship with our clients?" and "How should this not be used in our accounting firm."
"The advisory nature of our services demands a level of human interaction that can never be replaced with any dashboard or stale, impersonal chatbot conversation," Marquez said.
Talent replacement has been another threat looming on the horizon for many professionals. Eight percent of experts surveyed said that anywhere from a quarter (26%) to three-quarters (75%) of their jobs could be taken over by AI today. In three to five years' time, that employee share jumps to 47% and includes those who feel that AI could handle up to 99% of their jobs.
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These concerns still persist even among those using AI, but gradual, targeted adoption campaigns can help firms get comfortable with smaller use cases before diving deeper into wide-spread integrations.
Back in 2018, Maryland-based GWCPA started using AI in the firm's audit processes to help with risk assessment, testing of transactions, sampling, and journal entry testing. The positive results from that campaign led executives to add further automation across the organization in areas like marketing, client tax queries and research, internal documentation and more as of 2023.
Other examples range from RSM US's automated compliance system, which uses large language models for compliance automation and tax position documentation, to CLA's $500 million investment into AI and digital solutions, one of which being a proprietary tool known as CLAgpt.
"[AI] has positioned us to better serve our clients, refine our operations and maintain our high standards, all while ensuring the security of client data by using closed models and paid platforms, with anonymous data uploads for added protection," said Samantha Bowling, managing partner of GWCPA.
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The interest in AI that these firms demonstrate is matched by the growing AI appetite among software providers and other financial technology firms across the financial services space.
Data published this month by Stamford, Connecticut-based business advisory and research firm Gartner predicts that roughly
But experts warn that with rapid adoption of new technologies, comes new challenges.
Diligent leaders can start by establishing an AI working group within their organizations composed of team members with different skill sets across various departments, and should ultimately be led by IT, Amanda Wilkie, a consultant for Boomer Consulting Inc., said in an opinion article for Accounting Today.
Employee education is a key part of this approach, ensuring that any tools are used properly to safeguard the firm against many risks.
"By developing an AI usage policy, exploring AI tools in your firm and educating your team members on how to use AI responsibly, you can harness the power of AI while minimizing risks," Wilkie said.
Read on to learn more about how accounting firms and software providers alike are exploring AI adoption and how the technology stands to change the industry.
