Be sure to check out Mitchal’s interview in the Coffee Chats with CPABC podcast series. “Let’s Chat about AI: A Practical Discussion for CPAs” was released on December 12, 2023.
Welcome to the final instalment of our three-part “Let’s Chat About AI” series authored by Mitchal Derksen, CPA, CA, founder and CEO of Numu Technologies in Vernon. Mitchal is a software developer who works with AI every day. In Part I (January/February 2024 issue), he offered practical advice on getting started with AI; in Part II (March/April 2024 issue) he explored the risks and ethical considerations CPAs need to address when using this transformative technology; and in Part III, he addresses some of the uncertainties around AI.
Thank you for joining me in the final part of this series on AI and its impact on the CPA profession. My hope is that this series will serve as a springboard to a broader, and evolving, conversation for us as CPAs. As professionals with considerable influence in the business landscape, we have the opportunity to contribute meaningfully to discussions about AI, and this includes participating in thought-leadership forums and advising government on policy.
While the topic of AI is expansive and there is much more to say on the matter, I wanted to finish off this series by addressing some questions, concerns, and myths.
Will AI tools change the skill set of CPAs in the future?
The short answer is yes. AI tools are set to alter the skill set required of CPAs, leaning more heavily into technological proficiency and strategic thinking. I believe CPAs will need to become adept at using AI to enhance data analysis and decision-making processes. In short, I think CPAs will need to step outside traditional accountancy roles to become tech-savvy advisors.
What can CPAs do to stay relevant as AI reshapes the world of business?
To adapt to the new business landscape, CPAs will need to gain a solid understanding of data analytics, learn basic programming knowledge—especially in languages like Python—and pursue continuous education in AI applications. CPAs should focus on developing these skills to complement the efficiency gains from automation, ensuring that we can deliver higher-value insights and maintain our pivotal role in the business landscape.
Will finance jobs be paid less due to AI?
The financial terrain is undeniably transforming under AI’s influence, but it’s not all about slashed paycheques. In fact, AI could potentially lead to more rewarding roles, both intellectually and financially, for those who are willing to adapt and upskill.
As AI automates routine tasks, the demand for strategic financial expertise will rise. This could well enhance the value and compensation for finance professionals who pivot to roles that leverage these higher-level skills. Ultimately, for the savvy professional, AI is less of a threat and more of an invitation to evolve.
Will CPAs lose their jobs?
The short answer is no, though some roles associated with work that CPAs do today will likely become obsolete. Functions that are more focused on data-entry and repetitive data management (e.g., populating tax returns) are the ones most likely to be replaced by AI in the near term. But this is not a bad thing. By automating menial tasks, AI will free us up to take on more meaningful and challenging work.
Ultimately, it’s adaptability that will keep us ahead in the AI era. Proactive and flexible CPAs who learn how to use AI effectively, augment their skill sets with data analytics and technological expertise, and pivot towards more strategic functions within finance should be able to secure a vital place in the future job market.
What would you say to someone who expects to retire before AI takes hold?
I’ve always been a firm believer in being a lifelong learner, which means retirement is not the end of the learning journey—particularly for the many retired CPAs who continue to offer leadership and insight through board service. All organizations, including non-profits, will face the challenge of implementing AI responsibly, and it behooves us as respected business experts to continue learning so that we can provide valuable guidance along the way.
For those currently eyeing retirement, learning about AI isn’t about keeping a job—it’s about enriching your professional narrative. It’s a chance to mentor younger colleagues through this huge paradigm shift, offering wisdom on how to blend AI with human insight. This will not only add value to your current role but will also leave a lasting impact.
Will many small businesses shutter because they can’t keep up with the demands of AI?
To the contrary, AI could actually help some small businesses grow more. A brief personal story: After working with some of Canada’s largest organizations, I started Numu Technologies in 2018 with the goal of making the AI, business intelligence, and technology used by large organizations accessible to small businesses—essentially levelling the playing field. Now, in 2024, we aren’t the only ones doing this, and AI is offering smaller enterprises tools that were once only accessible to large corporations. These tools can streamline operations, uncover insights in data, and open up new avenues for customer engagement and service delivery.
Certainly, there is a learning curve, and not all small business owners may initially feel equipped to handle it. However, AI’s increasing accessibility means that it’s more about the willingness to adapt than the capacity to do so. Instead of leading to widespread closures, AI could empower small businesses to compete more effectively, grow their customer base, and enhance their products and services. It’s about taking the first steps, leveraging the wealth of available learning resources, and sometimes seeking external support to integrate AI in a way that aligns with their unique business goals.
What are some common misconceptions about AI?
Discussions about AI in the accounting industry often paint a picture that’s either too bleak or, conversely, overly optimistic. Let’s debunk a few myths:
- Myth #1: AI will replace accountants: As mentioned earlier, it’s a myth that AI is set to completely replace human accountants. Instead, AI will continue to be used to automate routine tasks, freeing up professionals to focus on more strategic, advisory roles.
- Myth #2: AI is only for “big players”: Many believe AI solutions are solely the domain of large organizations. However, AI technology is becoming increasingly accessible and affordable for businesses of all sizes, including small and mid-sized practices.
- Myth #3: AI can solve problems on its own: There’s a common misconception that AI tools can independently tackle and solve complex accounting problems. While AI can significantly enhance data analysis and decision-making, human oversight is required for interpretation and ethical considerations.
- Myth #4: AI implementation is overwhelmingly complex: Integrating AI into accounting practices may seem a daunting or even insurmountable challenge. But while AI tools do require some upfront learning and adaptation, many are specifically designed with user-friendly interfaces to make them accessible even to non-technical users.
How can we regulate a technology that seems to have limitless possibilities?
Although regulating a technology as expansive and rapidly evolving as AI is indeed challenging, it is far from impossible. It will require a concerted effort and a dynamic approach—one that balances innovation with ethical considerations, privacy concerns, and societal impact.
Here’s how I think we can navigate this:
- Collaborative frameworks: Governments, industry leaders, and academic experts need to work together to create flexible, forward-looking regulations that can adapt to technological advancements while safeguarding the public interest.
- Ethical guidelines and standards: Establishing clear ethical guidelines and standards for AI development and usage is crucial. To ensure that AI systems are designed and deployed responsibly, these guidelines and standards should prioritize transparency, accountability, and fairness.
- Continuous monitoring and evaluation: Given AI’s rapid evolution, regulatory bodies will have to continuously monitor AI developments and assess the effectiveness of existing regulations, making iterative adjustments as necessary.
- Public engagement: Including public input in the regulatory process will help ensure that AI technologies align with societal values and needs, thereby fostering broader acceptance and responsible usage.
- International cooperation: AI’s impact crosses borders, making international co-operation essential. Countries should work together to harmonize regulations, preventing a patchwork of standards that could hinder global innovation.
As individuals who are trained to understand and interpret regulatory frameworks and equipped with a strong ethical background, CPAs have a unique role in the business environment—particularly as we also work in day-to-day business roles across all industries. Accordingly, we are well-positioned to contribute best-practice guidance to government as it sets policies and best practices regarding AI.
As a starting point, I would like to see the formation of an AI strategy forum under CPABC, comprised of CPAs from all different industries and roles—including AI professionals—that can help shape these best practices and advise government on policy considerations.
Key resources for CPAs
I know there are a lot of questions about AI—including how to get started with coding and other AI tools. Accordingly, my team at Numu Technologies has curated a small, free learning library for CPAs who are interested in learning more about AI and software development, which we invite you to explore at numutech.com/infocus.
Mitchal Derksen, CPA, CA, is the founder and CEO of Numu Technologies in Vernon. He and his team of CPAs focus on researching and developing accounting AI responsibly.
This article was originally published in the May/June 2024 issue of CPABC in Focus.
