The massive increase in the use of generative AI tools such as ChatGPT, Microsoft Copilot and Google Gemini is disrupting the way companies do business. These tools can help automate tasks, generate code and analyze large amounts of data in seconds, aiding decision making and analytics. These tools can also help companies save money on tasks that previously required humans to complete. <\/p>\n\n\n\n
In line with the loss of demand for human capital, a recent New York Times article<\/a> reports massive job losses and reduced demand for workers in the computer science industry. Forbes<\/em><\/a> also explores how AI could be detrimental to lower-wage workers. <\/p>\n\n\n\n Many current and prospective business students may be concerned about the risk AI may pose for jobs in analytical disciplines such as accounting and finance. In this article, we explore the potential effect of AI on jobs in the accounting and finance industries using insights from discussions with firms and practitioners. <\/p>\n\n\n\n The work done by accounting and finance professionals varies significantly based on the type of engagement and the rank of the professional. Professionals in their first couple of years have traditionally been responsible for more basic tasks such as building spreadsheets, collecting data, creating memos and presentations, or drafting reports. Many of these tasks can now be easily and quickly completed by AI tools. Thus, AI has the potential to change and perhaps replace some of the tasks completed by newly hired professionals. <\/p>\n\n\n\n The greater use of AI will raise the bar for diligent and thorough work done by new graduates. They will likely need more developed critical thinking and higher-order thinking skills to help them utilize the AI tools. Critical thinking skills are essential because AI tools do not always provide correct or reliable information. Many AI tools will only respond to prompts given, so the \u201cjunk in, junk out\u201d applies. Professionals need to combine greater baseline knowledge with critical thinking skills to ensure they are asking the AI tool the right questions. New graduates in the post-AI accounting world must have a solid foundation of concepts to interweave their knowledge with well-developed critical thinking skills to enable them to use AI tools effectively. <\/p>\n\n\n\n Because these graduates will spend less time doing more basic tasks, they must be ready to tackle more strategic tasks at an earlier career stage. They are likely to interact with teams and clients earlier than past new graduates and will need excellent interpersonal, teamwork, communication, and presentation skills to help prepare them for these interactions.<\/p>\n\n\n\n Larger accounting firms told us they do not plan to decrease hiring at lower levels substantially. However, some firms are augmenting their accounting hires with data scientists and other professionals to help support the greater AI use and analysis of \u201cbig data.\u201d <\/p>\n\n\n\n Firms need a pipeline of new graduates to advance to higher levels in the organization. Accounting firms and investment banks are both continuing to hire high-quality graduates to provide a talent base for future growth. That could create tension between today\u2019s graduates and their predecessors, who may have a better understanding of basic tasks being offloaded toAI software. Thus, it will be important for firms to maintain training on lower-level tasks to ensure that new professionals understand the basics before they begin more advanced roles. <\/p>\n\n\n\n We do not expect AI to substantially change the demands for experienced professionals, although they may now be using AI tools to help them find better solutions to client problems. AI can help experienced professionals do more enhanced analyses and perhaps provide even greater solutions to clients than they previously could. <\/p>\n\n\n\n One thing we do not expect to change at any professional level is the demand for technical knowledge. AI is not a replacement for technical knowledge, especially because it is necessary to discern the accuracy and diligence of responses from generative AI tools. If anything, new professionals will need even greater knowledge of the rules to evaluate the output given by AI tools. Maintaining technical knowledge is also key in building and maintaining client trust and ensuring that professionals can ask clients the right questions to help them understand the scope of the problems at hand. <\/p>\n\n\n\n In the past, companies have engaged accounting and finance professionals to provide advice on various business decisions. In theory, AI could perhaps answer some of these questions. For example, if a client is contemplating a merger, they could simply upload the current facts of the scenario and ask AI to provide recommendations on the best type of acquisition. <\/p>\n\n\n\n However, AI can only answer the specific question it has been asked, and it does not necessarily do well at asking follow-up questions. Clients often do not provide all the necessary information to come to the best decision, and professionals must ask follow-up questions to ensure they are seeing the whole picture. <\/p>\n\n\n\n In addition, the data and proposed solutions provided by AI tools such as ChatGPT are not always correct or optimal. Further, clients may not necessarily have the technical knowledge to evaluate the extent to which AI\u2019s proposed solutions are valid and or ideal. Therefore, it will be vital for professionals to explain and demonstrate to clients how they add value beyond just what AI can provide. Part of this will be through continued relationship building and trust.<\/p>\n\n\n\n In sum, AI is changing the way we do many things; it can help us book travel<\/a>, provide ideas for redesigning a home or yard<\/a>, or even provide recommendations for fun things to do<\/a>. <\/p>\n\n\n\n We do not expect a massive decline in the demand for accountants and finance professionals as other industries have been threatened with. However, AI will certainly change the way accounting and finance professionals do their jobs. To remain in high demand, college graduates in these areas should make sure that they don\u2019t lose focus on learning the technical skills, just as these aspiring professionals have traditionally done. They should not rely on ChatGPT to replace old-fashioned hard work on their course learning assignments. <\/p>\n\n\n\n However, exposure to the proper use of these tools to augment<\/em> rather than replace<\/em> decision-making will be helpful as they enter the profession. In addition, students must build their critical thinking and interpersonal skills to help them prepare for more advanced tasks early on in their careers.<\/p>\n\n\n\n Graduates in accounting and finance will continue to be in demand if they can demonstrate strong foundational knowledge, fluency with AI, and excellent critical thinking and interpersonal skills.<\/p>\n\n\n\n Christina Lewellen<\/a> is an associate professor of accounting in the Poole College of Management. She specializes in the study of corporate and individual taxes, corporate governance and international taxation.<\/em><\/p>\n\n\n\n Nathan Goldman<\/a> is the Dean\u2019s Professor of Accounting and a University Faculty Scholar. His teaching and research focus on corporate taxation.<\/em><\/em><\/p>\n\n\n\n Richard Warr<\/a> is associate dean for faculty and research, and professor of finance in the Poole College of Management at NC State.<\/em> His research focus is on finance, the stock market, inflation, cryptocurrencies and investing.<\/em><\/p>\n","protected":false,"raw":"\n\n\n\n\n The massive increase in the use of generative AI tools such as ChatGPT, Microsoft Copilot and Google Gemini is disrupting the way companies do business. These tools can help automate tasks, generate code and analyze large amounts of data in seconds, aiding decision making and analytics. These tools can also help companies save money on tasks that previously required humans to complete. <\/p>\n\n\n\n In line with the loss of demand for human capital, a recent New York Times article<\/a> reports massive job losses and reduced demand for workers in the computer science industry. Forbes<\/em><\/a> also explores how AI could be detrimental to lower-wage workers. <\/p>\n\n\n\n Many current and prospective business students may be concerned about the risk AI may pose for jobs in analytical disciplines such as accounting and finance. In this article, we explore the potential effect of AI on jobs in the accounting and finance industries using insights from discussions with firms and practitioners. <\/p>\n\n\n\n The work done by accounting and finance professionals varies significantly based on the type of engagement and the rank of the professional. Professionals in their first couple of years have traditionally been responsible for more basic tasks such as building spreadsheets, collecting data, creating memos and presentations, or drafting reports. Many of these tasks can now be easily and quickly completed by AI tools. Thus, AI has the potential to change and perhaps replace some of the tasks completed by newly hired professionals. <\/p>\n\n\n\n The greater use of AI will raise the bar for diligent and thorough work done by new graduates. They will likely need more developed critical thinking and higher-order thinking skills to help them utilize the AI tools. Critical thinking skills are essential because AI tools do not always provide correct or reliable information. Many AI tools will only respond to prompts given, so the \u201cjunk in, junk out\u201d applies. Professionals need to combine greater baseline knowledge with critical thinking skills to ensure they are asking the AI tool the right questions. New graduates in the post-AI accounting world must have a solid foundation of concepts to interweave their knowledge with well-developed critical thinking skills to enable them to use AI tools effectively. <\/p>\n\n\n\n Because these graduates will spend less time doing more basic tasks, they must be ready to tackle more strategic tasks at an earlier career stage. They are likely to interact with teams and clients earlier than past new graduates and will need excellent interpersonal, teamwork, communication, and presentation skills to help prepare them for these interactions.<\/p>\n\n\n\n Larger accounting firms told us they do not plan to decrease hiring at lower levels substantially. However, some firms are augmenting their accounting hires with data scientists and other professionals to help support the greater AI use and analysis of \u201cbig data.\u201d <\/p>\n\n\n\n Firms need a pipeline of new graduates to advance to higher levels in the organization. Accounting firms and investment banks are both continuing to hire high-quality graduates to provide a talent base for future growth. That could create tension between today\u2019s graduates and their predecessors, who may have a better understanding of basic tasks being offloaded toAI software. Thus, it will be important for firms to maintain training on lower-level tasks to ensure that new professionals understand the basics before they begin more advanced roles. <\/p>\n\n\n\n We do not expect AI to substantially change the demands for experienced professionals, although they may now be using AI tools to help them find better solutions to client problems. AI can help experienced professionals do more enhanced analyses and perhaps provide even greater solutions to clients than they previously could. <\/p>\n\n\n\n One thing we do not expect to change at any professional level is the demand for technical knowledge. AI is not a replacement for technical knowledge, especially because it is necessary to discern the accuracy and diligence of responses from generative AI tools. If anything, new professionals will need even greater knowledge of the rules to evaluate the output given by AI tools. Maintaining technical knowledge is also key in building and maintaining client trust and ensuring that professionals can ask clients the right questions to help them understand the scope of the problems at hand. <\/p>\n\n\n\n In the past, companies have engaged accounting and finance professionals to provide advice on various business decisions. In theory, AI could perhaps answer some of these questions. For example, if a client is contemplating a merger, they could simply upload the current facts of the scenario and ask AI to provide recommendations on the best type of acquisition. <\/p>\n\n\n\n However, AI can only answer the specific question it has been asked, and it does not necessarily do well at asking follow-up questions. Clients often do not provide all the necessary information to come to the best decision, and professionals must ask follow-up questions to ensure they are seeing the whole picture. <\/p>\n\n\n\n In addition, the data and proposed solutions provided by AI tools such as ChatGPT are not always correct or optimal. Further, clients may not necessarily have the technical knowledge to evaluate the extent to which AI\u2019s proposed solutions are valid and or ideal. Therefore, it will be vital for professionals to explain and demonstrate to clients how they add value beyond just what AI can provide. Part of this will be through continued relationship building and trust.<\/p>\n\n\n\n In sum, AI is changing the way we do many things; it can help us book travel<\/a>, provide ideas for redesigning a home or yard<\/a>, or even provide recommendations for fun things to do<\/a>. <\/p>\n\n\n\n We do not expect a massive decline in the demand for accountants and finance professionals as other industries have been threatened with. However, AI will certainly change the way accounting and finance professionals do their jobs. To remain in high demand, college graduates in these areas should make sure that they don\u2019t lose focus on learning the technical skills, just as these aspiring professionals have traditionally done. They should not rely on ChatGPT to replace old-fashioned hard work on their course learning assignments. <\/p>\n\n\n\n However, exposure to the proper use of these tools to augment<\/em> rather than replace<\/em> decision-making will be helpful as they enter the profession. In addition, students must build their critical thinking and interpersonal skills to help them prepare for more advanced tasks early on in their careers.<\/p>\n\n\n\n Graduates in accounting and finance will continue to be in demand if they can demonstrate strong foundational knowledge, fluency with AI, and excellent critical thinking and interpersonal skills.<\/p>\n\n\n\n Christina Lewellen<\/a> is an associate professor of accounting in the Poole College of Management. She specializes in the study of corporate and individual taxes, corporate governance and international taxation.<\/em><\/p>\n\n\n\nHow can AI change the work done by accounting and finance professionals? <\/strong><\/h3>\n\n\n\n
How can AI change client demands for accounting and finance careers?<\/strong><\/h3>\n\n\n\n
Conclusion<\/strong><\/h3>\n\n\n\n
How can AI change the work done by accounting and finance professionals? <\/strong><\/h3>\n\n\n\n
How can AI change client demands for accounting and finance careers?<\/strong><\/h3>\n\n\n\n
Conclusion<\/strong><\/h3>\n\n\n\n