Human oversight and experience are as critical as technology in adopting AI in the finance function

NEW YORK, Sept. 25, 2024 /PRNewswire/ — Accountants are taking a leading role in shaping artificial intelligence (AI) and data strategies across businesses, according to a report published today by ACCA (the Association of Chartered Certified Accountants). Based on interviews and a survey of more than 900 finance leaders who are already using AI, the report, Smart alliance, found 56% said they had an advisory role in adopting AI and 20% said they were the strategic owners.

Smart alliance revealed that business is investing in AI. Mid- to large-sized organizations committed the greatest sums to AI implementation over the most recent financial year. Among organizations with revenues exceeding $1 billion, more than one quarter invested over $500,000 in AI projects in the past year alone.

Smart alliance author Alistair Brisbourne, head of technology research at ACCA, said: “The survey revealed that three-quarters of all respondents are expecting 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.”

The survey confirms AI is a tool to enhance the skills of accounting professionals rather than replace them. AI in accounting and insurance is about reimagining roles of finance professionals focussed on analysis and interpretation, strategy, and high-level decision-making.

AI is about leveraging data in innovative and powerful ways to enhance decision-making and streamline processes through the application of tools such as machine learning (ML), computer vision (CV) natural language processing (NLP) and generative AI (GenAI).

Based on interviews and a survey of more than 900 accounting leaders who are already using AI, the report provides insights into strategic approaches, challenges, the risks – including ethical questions – and the outlook for AI in the profession. The survey reveals a widespread acceptance the finance function can be improved by AI, belying the stereotype of a conservative profession.

However the survey also found AI adoption is not uniform: over 40% of large corporates are using AI for data analysis and reporting, fewer than 30% of sole practitioners and small or medium-sized practices (SMPs) have done so.

The survey also reveals different sectors are focussing on different uses with organizations pursuing several outcomes through AI initiatives, including include improving the quality of products and services, boosting efficiency of existing processes, upskilling employees, expanding organizational capabilities, enhancing decision-making, driving competitive advantage, and reducing operational costs. (see chart)

As data becomes central to organizational success, finance departments are well placed to foster cross-functional collaboration, bridge the gap between organizational strategy and day-to-day operations, and ensure AI initiatives align with business objectives. (See chart)

Smart alliance serves as a crucial resource for accounting and finance professionals. It contributes to ACCA’s work on the evolution of the finance function.

Alistair Brisbourne, said: “The future of AI in accounting appears both exciting and transformative. Our survey data, coupled with insights from industry leaders, paints a picture of a profession on the cusp of significant change – driven by advancing AI technologies and evolving business needs.”

Read the full Smart alliance report.

Download the chart accompanying this release, “What was your approximate financial commitment towards AI projects / implementation in the last financial year?“

About ACCA

We are ACCA (the Association of Chartered Certified Accountants), a globally recognized professional accountancy body providing qualifications and advancing standards in accountancy worldwide. 

Founded in 1904 to widen access to the accountancy profession, we’ve long championed inclusion and today proudly support a diverse community of over 252,500 members and 526,000 future members in 180 countries. 

Our forward-looking qualifications, continuous learning and insights are respected and valued by employers in every sector. They equip individuals with the business and finance expertise and ethical judgment to create, protect, and report the sustainable value delivered by organizations and economies. 

Guided by our purpose and values, our vision is to develop the accountancy profession the world needs. Partnering with policymakers, standard setters, the donor community, educators and other accountancy bodies, we’re strengthening and building a profession that drives a sustainable future for all. 

Find out more at: www.accaglobal.com 

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SOURCE ACCA (the Association of Chartered Certified Accountants)