Accountants remain Humane in the Age of AI: A Global Perspective

With the rise of artificial intelligence (AI), many tasks in the accounting field can now be automated and made more efficient. However, human expertise and judgement remain essential in the audit practice, especially on a global scale. Here are several reasons why accountants continue to play a crucial role, supported by insights from various international accounting bodies.

Interpretation and Judgment

AI can analyze data and recognize patterns, but it cannot understand context and nuances the way a human can. Accountants worldwide are needed to interpret the results of AI analyses and make judgments about complex and unique situations. This human insight is vital for making informed decisions that consider the broader business environment. For instance, the NBA in the Netherlands emphasizes the importance of human judgment in ensuring the quality and reliability of audits.

Communication and Relationships

Maintaining client relationships and communicating audit findings require human skills. Accountants must be able to clearly and effectively communicate with their clients, something that AI cannot yet replicate. Building trust and understanding through personal interaction is a key component of the accounting profession, particularly in countries known for their strong business relationships. The AFM (the financial services regulatory authority in the Netherlands) highlights the need for clear communication and transparency in financial reporting.

Ethics and Professionalism

Accountants must adhere to strict ethical standards and professional guidelines. Ensuring the integrity and independence of audits is a human responsibility that cannot be fully taken over by AI. Ethical considerations and professional judgment are areas where human accountants excel, providing a level of oversight and accountability that AI cannot match. The NBA’s  (Royal Netherlands Institute of Chartered Accountants) Taskforce AI underscores the importance of ethical AI use in the accounting profession.

Strategic Advice

Beyond conducting audits, accountants also provide strategic advice to their clients. This includes helping businesses improve their processes, manage risks, and plan for the future. This advisory role requires human insight and experience, which are critical for offering tailored and effective solutions to complex business challenges. The AFM notes that AI can support strategic decision-making but cannot replace the nuanced understanding that human accountants bring.

Adaptation to Changes

The regulations and standards in the accounting field are constantly evolving. Accountants must adapt to these changes and continuously update their knowledge and skills. While AI can assist in keeping track of regulations, the interpretation and application of these rules remain human tasks. Accountants play a crucial role in ensuring compliance and adapting to new regulatory environments. The NBA and AFM both emphasize the importance of ongoing professional development to keep pace with technological advancements.

International Market Trends

AI in the Accounting Market is experiencing significant growth globally. According to a report by Mordor Intelligence, the market size is expected to grow from USD 4.73 billion in 2024 to USD 26.66 billion by 2029, with a CAGR of 41.27%2. This growth is driven by the increasing adoption of AI and automation in accounting practices, which enhances productivity and allows for more accurate and timely financial reporting. Additionally, the integration of cloud technology is significantly bolstering global economic growth, prompting accounting firms to streamline their operations and improve data security2.

Conclusion

AI is a valuable tool that can enhance the efficiency and accuracy of audits, but it does not replace the need for human accountants. The combination of AI and human expertise can lead to better results and higher-quality audits. Accountants who embrace AI and adapt to technological changes will be well-positioned to succeed in the future. The continued importance of human judgment, communication, ethics, strategic advice, and adaptability ensures that there will always be a vital role for accountants in the age of AI.

By: Andries van Pijkeren partner Auren The Netherlands