Read
Edit: Administrator 2020-2-1
The technological transformation of large accounting and consulting companies goes far beyond standard audit and accounting process automation. With an emphasis on artificial intelligence, data analysis, and large-scale technical training, the most prominent organizations in the accounting field are using technology as part of their permanent identity, which is the key to survival in the era of artificial intelligence.
Let's take a look at the AI investment situation of the four major accounting firms:
KPMG announced in December 2019 that it will allocate $ 5 billion for advanced technologies such as artificial intelligence. According to KPMG, the announcement is based on a strategic decision in 2015 with automation and artificial intelligence at the heart of its future. KPMG's spending is focused on building new cloud-based technologies, creating innovative solutions for customers, whether internally or in partnership with other companies, and finally training employees to take advantage of new technologies such as artificial intelligence and automation. The company has also been focusing on artificial intelligence and data analytics, which can be used in audit processes as well as sold to consulting clients. KPMG's $ 5 billion investment in artificial intelligence makes it the largest company investing in cutting-edge technology among the Big Four accounting firms.
In September 2019, PricewaterhouseCoopers announced a plan to spend $ 3 billion over the next four years, mainly to train its troops to develop new technologies. To bridge the skills gap, PwC also launched a digital fitness APP about two years ago to measure employees' technical skills. The company also offers so-called digital accelerator programs that go deep into specific tools or technologies and then explore possible uses to bring back to their teams and customers.
Ernst & Young announced a two-year investment of US $ 500 million per year by 2018. As part of a two-year plan to spend $ 1 billion in advanced technology capabilities, EY has been changing traditional customer solutions and has begun to launch innovative services. For example, in terms of artificial intelligence (AI) and natural language processing, EY Document Intelligence Software is assisting the EY team to evaluate customer documents and contracts more effectively than auditors. In 2019, the solution was pushed to the Azure cloud platform and successfully tested lease accounting change and auditing business with EY's global guarantee team, reducing processing time by up to 90% and improving accuracy by 25%.
Deloitte has not released precise figures for its investment in technology capabilities, but it is working to become one of the largest law firm automation solution providers. Deloitte has been developing Kira, an artificial intelligence contract analysis tool, which is an ML-based system. Working with Kira Systems helps Deloitte discover what is critical to contract reviewers and then identify key information through a number of agreements. Deloitte said the company has 3,000 active users and has trained the platform to discover thousands of different data insights for customers.
The media believes that the Big Four have not only changed their operating methods by investing in unprecedented billions of dollars in technology, but also tried to change their own identity through this investment.
The exploration of technology goes far beyond the scope of automated standard auditing and accounting. By focusing on artificial intelligence, data analysis, and large-scale technical training across the organization, the largest players in the accounting field are making technology a part of their DNA.
"We are a professional services company, but technology is at the heart of our future," Christian Rast, KPMG's global head of technology and knowledge, said in a recent phone interview.
Narayanan Vaidyanathan, the head of commercial futures at the Institute of Chartered Certified Accountants, said in an interview on December 6 that the new technology is fundamentally changing the nature of accounting. Vaidyanathan said: "Since areas such as invoice processing are automated, many routine tasks are performed. However, as accountants and auditors have access to a lot more information, more jobs will be created: they can now check the company's all transactions, while data analysis allows them to spot trends and anomalies. This means that accountants will be more than just digital inspectors but business consultants. They need to master the technology and train employees to use it.
At times, this may allow large accounting firms to compete directly with technology giants, taking over some financial functions (outsourcing).
Srinivasa Rao, global vice president of EY Global Delivery Services, said the company could increase its staff in India by 50% next year, with about half of its new employees coming from a technical background as it develops AI and analytics products at home.
"Indeed, this is for emerging markets," Rao said. "Give them access to things like machine learning. They can adapt to their tax or audit products, which often have local demand. India will become the company's global presence. Is the second largest office behind the United States. "