The robots are not just coming, they are

already here
Here’s why CPAs and firms should see artificial intelligence and machine learning as an opportunity,
not a threat.
By Amy Vetter, CPA/CITP, CGMA 
April 30, 2018

Just as cars replaced horses in the early 1900s, our world and the accounting profession
itself are facing another major technological shift: the use of artificial intelligence (AI) and
machine learning in our everyday lives and work.

Henry Ford reputedly said, "If I had asked people what they wanted, they would have said
faster horses." The quote may be apocryphal, but with the pace of technological change
that we're experiencing in the 21st century, I very much doubt that people today could
envision a world without AI and machine learning.

After all, this change hasn't happened out of the blue. This shift started with the emergence
of modern "cloud computing" as popularized by now former Google CEO Eric Schmidt at an
industry conference in 2006. But the idea of network-based computing has been around
much longer than that and actually dates to the 1960s. And, of course, many of us were
introduced to this high-tech future as kids watching Star Trek and other sci-fi thrillers.

aordinary. For example, AI-based systems are cutting the hours required to manually review
contracts in the finance industry, The Economist reports. The article states that JPMorgan
Chase deployed natural-language processing software in 2016, enabling the company to
sift through 12,000 commercial-loan contracts in seconds, far less than the human
processing time of 360,000 hours.

As AI and machine learning advance, more and more of an accountant's traditional tasks
may be taken on by robots. A McKinsey report on "Where Machines Could Replace
Humans — And Where They Can't (Yet)" shows that work activities with about 70% of time
spent processing data are highly susceptible to automation. The work activities that are less
susceptible to automation include tasks that involve human connection, emotional
intelligence, and complex analysis such as managing others, applying expertise, and
interacting with stakeholders.

It's undeniable that this new world will create short-term growing pains for many in the
accounting profession. Not only will AI and machine learning eliminate many tasks in the
profession, but this technology is already giving our clients increased reliance on do-it-
yourself financial services. Instead of resisting this not-so-distant reality, it's important to
cultivate a cultural mindset that sees this new technology as an opportunity — not a threat
— for your accounting firm.
In particular, the use of AI and machine learning will increasingly give you the gift of time.
You'll no longer need to spend as much time entering and processing data. This means
you'll have more time to offer value-added services that your clients desperately need to
help them grow and stay in business.

You have the opportunity to not only be a "trusted adviser" — someone who can be relied
on to tell the truth — but what I call a "Cherished Advisor," a trusted, highly valued strategic
partner whom your clients depend on to understand what the numbers mean at a holistic
level and how to use them to make smarter business and life decisions. Even when
computers give your clients the financial data they need, they still lack the time and
expertise to truly understand it and make changes in their businesses and lives to create
better financial outcomes. That is where we, as Cherished Advisors, can change the game.

To prepare you and your firm for this new world, start by doing the following four things:

 Identify the areas in your firm that can be replaced by technology so that you can
free up more time to offer additional advisory services to your clients.

 Remain up-to-date on the latest technology developments to not only identify the
best solutions for your firm, but also to be able to educate your clients when they
come to you with questions.

 Think of your practice as a business and productize your services. Establish a

process for how you deliver your services so you know your costs and efficiencies.
You can use that knowledge to free up more time to spend with your clients.

 Build the soft skills and the analytical skills to create long-lasting client relationships,
not just the technical expertise. To do this, it is important to implement training and
mentoring in your practice to properly develop these skills in yourself and your team.

Remember that the human side of the client-adviser experience can never be replaced by
technology, only enhanced. By learning how to take advantage of AI and machine learning
technology, you can tell your clients the story behind the numbers. This will allow you to
grow your firm and offer the highly valued advisory services your clients desire to meet their
financial goals in business and life.