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-Although artificial intelligence cannot replace you in taxation, technology, and consulting, it has some time-saving benefits
Australian Journal of Certified Public Accountants reported in May:
Accountants and auditors are one of the professions most exposed to the rapid development of artificial intelligence systems.
This is based on a joint study entitled "GPTs are GPTs: Early Look the Labor Market Impact Potential of Large Language Models" released by researchers from the University of Pennsylvania and OpenAI at the end of March. OpenAI is a company supported by Microsoft to develop revolutionary ChatGPT AI software.
These highly complex software systems use Natural language processing, machine learning, and data analysis to automate and enhance different aspects of working functionality.
If used properly, these systems can be designed to quickly extract and analyze public content on the Internet, organize information and data, answer specific questions from users, produce written materials, and even perform mathematical tasks.
These may also have their limitations. If used improperly, these tools may provide client data to external sources, violating copyright and/or privacy legislation.
Early adoption
As companies explore ways to integrate artificial intelligence systems into their operations, utilizing the benefits of artificial intelligence systems has sparked a series of activities in the accounting industry.
In March this year, KPMG announced that it has cooperated with Microsoft to develop KymChat, a private version of ChatGPT, which aims to "enable employees to use this pioneering technology safely in the workplace".
In March, PwC announced that it had partnered with artificial intelligence startup Harvey to provide its global legal business solutions team with "people-oriented, technology driven legal solutions".
A study by the University of Pennsylvania and OpenAI found that accountants and auditors' exposure scores were 100% in occupations where the time required to complete certain tasks using AI software was reduced by at least 50%.
The study points out that these professions' we estimate that GPT and GPT driven software can save workers a lot of time to complete most tasks, but this does not necessarily mean that their tasks can be fully automated through these technologies'.
Interestingly, we know that audit firms will not use the free version of ChatGPT to obtain audit evidence, as AI tools only draw data up to 2021 and are therefore not up-to-date, "said Tiffany Tan, head of audit and assurance policy for Australian registered accountants
Tiffany Tan also pointed out that some audit professionals view ChatGPT as a "language" auxiliary software that generates and presents information in a convincing and clear manner, which may not necessarily reflect accurate responses to the questions asked.
Relying on convincing but incorrect AI based outputs without independently readjusting work may expose audit professionals to significant risks.
Small Accounting Practice
It is obvious that small businesses are also using artificial intelligence technology for water testing.
One such practitioner is Alan Giffard CPA, the co head of G2 Accounting, who said, "We mainly conducted experiments on this point.
We may still not be very clear about what role it will play in the business. This still requires more experimentation
Giffard stated that he has been testing ChatGPT and drafting automated response emails based on customer inquiries.
He said, "This is okay. It may require more adjustments and direction.
Giffard added that he is still aware of security restrictions, such as not embedding sensitive customer data, such as their tax file numbers.
Jeremy Hirschhorn, the second director of the Australian Taxation Bureau, stated at an international tax management conference in April that he is concerned about the ability of artificial intelligence engines to "produce absolutely convincing, credible, but completely incorrect responses", especially in the field of taxation.
Giffard stated that he is also acutely aware that artificial intelligence systems may exploit incorrect tax or accounting information.
If it focuses on outdated rules, then the suggestion will also become immediately outdated. The fact is that GPT, as a function, appears to be the most likely correct statistically.
He said, "There are many examples where someone gave it a simple question but got the wrong answer.
Kristen Beadle, the Australian Public Practice Manager of Certified Public Accountants, stated that the feedback from members includes a cautious attitude towards their abilities and an optimistic attitude towards future earnings.
Some members are already using this technology to create marketing materials, saving them time to focus on customer facing work. Other members see it as a means to help solve employee shortages, undertake repetitive tasks, and free up employees for more complex tasks.
She pointed out, "However, users of this technology need to be cautious and understand the meaning of the client information they may share with the technology, which may be used by malicious actors who may use this data in network attacks.
Why has the youth unemployment rate in China increased so much?
Reported in the International Accounting Bulletin on June 5, 2023:
The youth unemployment rate in China has been consistently high, although with the reopening of the economy, the overall unemployment rate in cities continues to increase.
Goldman Sachs economist Maggie Wei wrote in the team's report that the unemployment rate for people aged 16 to 24 increased to 20.4% in April, approximately twice the pre pandemic level in April 2019.
Periodic factors are only part of the story
During economic downturns, young people are often particularly vulnerable, possibly due to a lack of work experience. The epidemic has exacerbated this trend, which is particularly difficult for service industries that tend to hire more young workers.
Skill mismatch helps explain higher than normal unemployment rates
Goldman Sachs economists have found that the mismatch between the skills obtained by graduates from higher education and the skills required by employers may lead to abnormally high unemployment rates.
Reducing youth unemployment may take some time
Goldman Sachs Research estimates that China's service industry recovery may lower the youth unemployment rate by 3 percentage points this quarter, but the strong supply of young workers brought by the graduation season may lead to a 3-4 percentage point increase in unemployment this summer, and then begin to decline in the third quarter. Addressing structural mismatches in skills can be a long-term task.
ACCA and IFAC explore how to promote public financial management (PFM) reform around the world
Report of the Accounting Journal on June 7th:
According to the "Global Guidelines for Public Sector Financial Specialization" released by ACCA and IFAC, achieving specialization brings multiple benefits to the economy, government, and individuals.
Only financial professionals with the correct skills and knowledge can the public sector attract and retain suitable talents in order to achieve public financial management (PFM) reform.
But as emphasized in ACCA's latest report "Global Talent Trends 2023: Public Sector", although the financial profession in the public sector has obvious advantages, this becomes even more challenging in a world where the public sector is increasingly competing for talent.
Regarding this, ACCA CEO Helen Brand stated, "The professionalization of public finance functions requires political will, correct structure and governance, adoption of appropriate policies, and a commitment to continuous development and improvement. Achieving professionalization brings multiple benefits to individual professionals, the government, and the broader economy. The public sector, as well as individuals, provides more diverse career choices.
Kevin Dancey, CEO of IFAC, concluded, "The professionalization of public sector finance functions is crucial for effective governance and sustainable economic development. By cultivating a highly skilled and responsible workforce, we can improve transparency, efficiency, and trust in public finance management.
Attracting top talent is key to enhancing the industry's ability to respond to complex financial and social challenges, as well as driving positive changes in the public sector
The accountant explores the development of these skills and the professional formation of those who join the accounting industry in its supplement "Developing Accountants".