In today's world, you simply can't avoid discussing generative artificial intelligence. News stories and conversations about AI are abundant, and the accounting industry is no exception. At Baker Tilly, we've embraced AI to enhance efficiency, making it an invaluable tool to empower our professionals and accelerate their work.
A "better" busy season
Traditionally, public accounting has been associated with grueling, time-consuming hours spent on data manipulation, especially during the busy season. Meeting filing deadlines has often felt like a race against the clock, with endless waiting for critical information and time-consuming research to find answers.
However, we've discovered that integrating AI into our processes can significantly improve our tax professionals' day-to-day experiences.
AI not only streamlines manual, repetitive tasks but also aids in forming conclusions and writing opinions, which typically consume considerable time. With AI support, everyone can approach their work more productively, reducing the endless cycle of "wheel spinning."
By leveraging AI, our professionals can now quickly secure accurate samples to take a higher-level review perspective on those samples, allowing them to get to their answers a lot faster.
AI's vast potential
AI is making headway in various aspects of tax, from coding trial balances to identifying tax treatments automatically. We see extensive applications in research and publications, too. At Baker Tilly, we've explored integrating AI into our daily operations, including HR policies, to effectively manage the wealth of data we accumulate within the firm.
One key initiative is elevating our tax professionals in their careers. By eliminating daily redundancy and noncritical aspects of their roles, we empower our professionals to transition into more strategic, analytical positions, where human judgment and insight are irreplaceable. This benefits our professionals and enhances the value we offer our clients.
Consistency is key in tax applications
We often receive client data and general ledgers in various formats. Achieving consistency in tax returns and white paper descriptions across the firm is challenging. We're using AI to ensure uniformity throughout the compliance process, creating a one-touch solution that streamlines the tax compliance process. For example, if a tax professional in New York starts a compliance project, another professional in Detroit could pick it up, review it and know exactly what to look for.
With a library of coding and descriptions, we've incorporated AI to identify the appropriate placement for general ledger items on tax returns. We've achieved remarkable accuracy levels, and we're continually refining our AI logic to enhance our processes.
Access to incredible technology
The availability of these technologies is nothing short of remarkable. What was once unimaginable a few years ago is now at our fingertips. At Baker Tilly, our tax technology practice comprises former tax professionals who have adapted to the technology landscape, learned to apply it, and created innovative tools in just a matter of months.
While we're leveraging readily available technology, we remain cautious about security, ensuring that we don't compromise sensitive client data. We rely on both internal expertise and third-party partnerships to harness the full potential of AI.
Every technology we're using as a framework has been vetted through the firm from a security standpoint — we're not using any open-source code. Many of our third-party partners are making significant investments in AI to find better ways of using their tax research products, which we benefit from as well.
Some cautionary thoughts
While the prospects of leveraging AI are undoubtedly exciting, it is essential that we approach this technology with a sense of caution. AI can propel us forward, often covering 70 to 80% of a project's requirements, but it shouldn't be viewed as a one-size-fits-all solution to reach the full 100%. It's imperative to maintain a realistic assessment of AI's capabilities and rigorously verify the accuracy of its outputs. Not all AI solutions are created equal, making thorough vetting of platforms and software a critical step.
Our profession's inherent risk aversion is well-founded. The marketplace offers numerous open-source options that may not undergo comprehensive testing and validation. Therefore, we must tread carefully when embracing new technologies.
Given our handling of sensitive client data, a stringent vetting process is essential for the technology platforms and third-party software we adopt. It's unwise to select readily available solutions hastily. Instead, we must opt for platforms offering security and a proven track record.
It's essential to be strategic when implementing AI. There are numerous areas where AI can be beneficial, but selecting the right priorities is a critical task. We're currently discerning how to apply this technology best, focusing on quick wins. However, this process requires discipline and careful planning.
AI's impact on accounting jobs
The fear of AI replacing accounting staff is a topic of ongoing discussion. However, professions involving finance, like accounting, require a human touch and intervention due to the heightened sensitivity of financial matters. AI should not be seen as a threat in the accounting field.
With AI handling repetitive tasks, professionals can dedicate more time to valuable, non-automatable tasks. AI can make the profession more engaging, attracting professionals with varied skill sets and experience. This shift in the accounting landscape is both exciting and energizing.
AI is transforming the accounting profession. It's not about replacing professionals but enabling them to excel by removing repetitive tasks. The future of accounting is bright, and embracing AI can lead to a more rewarding and diversified profession.
