The Impact of Artificial Intelligence on Accounting and Finance: A Global Perspective
IMA® (Institute of Management Accountants), the worldwide association of accountants and financial professionals in business, has released a report titled ‘The Impact of Artificial Intelligence on Accounting and Finance: A Global Perspective.’ This report explores the implications of AI in the accounting and finance profession, as well as the challenges and prerequisites for successful AI integration.
As AI continues to reshape the accounting and finance profession, IMA engaged global experts and leaders in the field to study the applications of AI and barriers to its implementation in accountants’ daily work. The report provides valuable insights for organizational strategies as leaders prepare to embark on their AI journey.
The report emphasizes that AI is a game-changer with the potential to empower accounting and finance professionals in data analysis, forecasting, and decision-making. Susie Duong, Ph.D., CMA, CPA, CIA, EA, senior director of research and thought leadership at IMA and author of the report, noted that the use of AI will drive the future growth of the profession, unlock untapped potential, and increase the value of professionals and organizations.
While AI will not fully replace human expertise, the report emphasizes the need for professionals at all levels to embrace and adopt this transformation. Professionals will need to focus on technology proficiency, data analytics, critical thinking, and cross-functional collaboration. Additionally, organizations will need to foster human-machine collaboration, upskill and reskill their team members, and create a culture of ongoing learning to understand AI’s strengths and weaknesses.
The report also identifies four key challenges associated with AI implementation: human, technological, operational, and ethical. Challenges related to people – involving all levels of employees within an organization – were identified as the biggest hurdle for success of AI initiatives, according to study participants.
Ahmad Mkhallati, senior director, IMA Middle East, India, and Africa, highlighted the significant impact of AI on the accounting and finance sectors in India, stating that it will revolutionize efficiency, strategic decision-making, and professional development. Embracing AI means embracing a future where learning, innovation, and ethical considerations are paramount.
To address these challenges and ensure successful AI integration, the report outlines the following prerequisites:
– Aligning AI strategies with organizational goals and ensuring adequate executive support
– Addressing the skills gap of the existing workforce through training and development
– Fostering cross-functional collaboration, process reengineering, and scalability
– Focusing on data quality and the digital preparedness of teams
– Navigating AI-related risks and embracing ethical AI practices
The research for the report drew insights from in-depth dialogues with experts in the field and accounting/finance leaders spanning the U.S., Europe, Asia-Pacific, Middle East, North Africa, India, and China.
The full report is available on IMA’s website.
About IMA® (Institute of Management Accountants)
IMA® is one of the largest and most respected associations focused exclusively on advancing the management accounting profession. Globally, IMA supports the profession through research, certification programs, continuing education, networking, and advocacy of the highest ethical business practices.
In conclusion, the report from IMA provides valuable insights into the impact of AI on accounting and finance, as well as the challenges and prerequisites for successful AI integration. As the profession continues to evolve, embracing AI will be crucial for unlocking new potential, enhancing strategic decision-making, and fostering professional development.
