iscover Human validation essential as practitioners embrace AI
TechnologyAudit and accounting professionals are selectively and cautiously integrating AI into workflows, but human judgement has the final say.
Latest global research from the International Data Corporation (IDC) reveals AI adoption is accelerating, but audit and accounting professionals hold clear expectations around use, and expect strong governance.
Commissioned by Caseware, The Future of Audit and Accounting in the AI Era report revealed 66 per cent of participants report AI is either embedded in firm strategy, widely used in functions, or, at minimum, is part of current pilot projects.
More than half of the over 1,000 participants strongly agree or agree that AI tools can improve audit quality.
However, firms and professionals were not without caution. With AI not immune from unreliability or organisational faults, human validation remained a crucial step as processes shift from experimentation to execution, with 64 per cent agreeing it should always be required in professional judgement.
These shifts have clearly come at a time when accountants are more knowledgeable of AI capabilities than ever. According to The State of AI in Accounting report produced by Agile Market Intelligence and commissioned by The Access Group earlier this year, almost 50 per cent of accounting practices aimed for complete AI integration.
It is clear that knowledge and confidence are greater than ever before, and with this comes greater awareness of what is still missing.
A desire for AI to augment functions rather than replace the professionals behind it has emerged – the same professionals who desire clarity and accountability as AI becomes more commonplace across the profession.
And the same goes for firms, with trust central to quality implementation.
David Marquis, chief executive of Caseware, said: “We’re committed to developing technology that enables the profession to evolve while safeguarding that trust.”
Group vice-president at Enterprise Software, IDC, Mickey North Rizza, said: “[The value of AI] is increasingly defined by how well firms integrate these tools into established methodologies, quality controls and governance frameworks.”
“Firms that prioritise this thoughtful integration will be better positioned to maintain the trust that defines the profession.”
However, the research also revealed that barriers to AI adoption were less about scepticism of the technology itself and more about a practical boundary. The cost of implementation ranked first, cited by 34 per cent of participants, and a lack of technical talent was referenced by 30 per cent.
As such, a sound evolution of the profession would not occur without preparing the workforce itself. As the profession shifts from exploration to implementation, firms that balance innovation with responsibility would flourish.
The quantitative survey featured 1,005 senior decision makers from the US, the UK, Canada, Australia, Germany and the Netherlands.
Amelia is a Professional Services Journalist with Momentum Media, covering Lawyers Weekly, HR Leader, Accountants Daily and Accounting Times. She has a background in technical copy and arts and culture journalism, and enjoys screenwriting in her spare time.
