AI changing the ‘skills mix required’ for accountants

This was attributed to two factors: a 61 per cent fall in accounting course completions since 2018, while domestic enrolments remain below half their 2018 peak, and skilled migration outcomes nearly halving for accountants and auditors over the past decade.

At the same time, the research showed that growing regulatory complexity and changing technology are increasing demand for accounting expertise.

While the impact of artificial intelligence on future demand remains uncertain, the report suggested it would reshape the skills accountants need rather than reduce demand or eliminate the need for accountants.

“Rather than reducing the importance of the profession, AI is expected to accelerate its evolution towards a more technology-enabled, advisory-focused workforce in which accountability and human judgement remain central,” the report said.

Generative AI, machine learning, and automation are expected to handle more routine, rules-based tasks such as data entry, reconciliations, transaction coding, invoice processing, tax preparation, and basic financial reporting, according to the report.

This could boost productivity, lower the administrative burden, and allow accountants to focus on high-value activities such as strategic advisory services, financial analysis, business partnering, risk management, and complex work that requires their judgement and expertise.

AI could simultaneously increase demand for new skills, with accountants playing a large role in overseeing AI-enabled financial systems by protecting confidential information, ensuring regulatory compliance, and maintaining strong governance, ethics, and data integrity, the report suggested.

In this environment, accountants with skills in data analytics, digital technologies, cyber risk, and strategic decision-making are likely to become increasingly valuable.

“From a workforce perspective, AI may also help alleviate some of the supply pressures facing the profession,” the report read.

“With declining domestic accounting enrolments, an ageing workforce and uncertainty around future skilled migration, productivity improvements enabled by AI could help existing accountants manage larger workloads and support growing demand for accounting services.”

The report flagged, however, that to realise these benefits while maintaining high standards of trust, accuracy, governance, accountability, and judgement, the profession would need to continue investing in digital capability, professional development, and education.

“The policy implication is not that AI will reduce the need for accountants, but that it will change the skills mix required,” it read.

“This reinforces the need to invest in accounting skills, lifelong learning and technology adoption so that AI augments professional expertise, improves productivity and supports the profession to meet growing demand across the economy.”

CA ANZ chief executive Ainslie van Onselen said AI might change how accountants work, but it will not replace the need for trusted, professional, and human judgement.

She added that higher-order skills such as critical thinking and strategic advice will become central for the profession.

“As routine tasks become increasingly automated, the value of accountants will lie even more in their ability to provide insight, exercise professional scepticism and help businesses make confident decisions,” she said.

The report identified five complementary priorities to tackle the looming shortage and strengthen the long-term supply of accounting professionals to meet forecast demand by 2035, including arming students and workers with future-ready skills so they can adapt to rapid changes in AI, regulation, and assurance requirements.

It also suggested strengthening the domestic talent pipeline, maintaining access to global talent, supporting workforce participation, and improving long-term workforce planning.

According to the research, accounting generates more than $82.4 billion in economic activity each year (about 3 per cent of GDP) and supports more than 365,000 jobs. If treated as a standalone sector, accounting would rank as the 13th largest in Australia, ahead of real estate, accommodation and food services, and agriculture.