January 2024
Darren Cran explores whether generative AI tools such as ChatGPT will transform or destroy your job prospects.
The assumption is that younger employees are more clued up on the tech, and more adaptable. Yet if AI applications take care of everything from data collection to drafting a financial strategy, will the majority of finance functions be surplus to requirements? That’s unlikely.
We are still in the early days of generative AI. A global survey by McKinsey, published in August, found a mere 7% of business, legal and professional services organisations currently use generative AI tools for work on a regular basis. It was only a minority of respondents in strategy and corporate finance who expected generative AI to decrease jobs. Yet we know there will be significant investment in generative AI, so what do younger professionals in the UK think about the technology?
AccountsIQ put the question to finance professionals at medium-sized businesses across the UK to find out how both senior and junior finance team members feel about AI, its use, its limitations, as well as any fears they have, as part of its ‘Confessions of the Finance Function’ report.
The verdict is clear – 82% of young professionals believe tools such as ChatGPT will have an impact on finance teams within the next five years. Interestingly, the opinions from the senior professionals on generative AI are much more mixed, ranging from outright optimism about how AI will improve performance to the 23% who see tools such as ChatGPT as a direct threat to their own jobs.
Will automation improve office culture?
The integration of automation and AI in the workplace is indeed a transformative force that has the potential to significantly impact morale and improve office culture, especially among younger professionals.
AI, particularly advanced AI systems, requires vast quantities of homogeneous data to effectively interpret and exercise judgment or decision-making capabilities that are practical and valuable. Individual businesses in the mid-market often have unique and relatively small datasets, making AI solutions particularly advantageous for finance teams.
Younger professionals can see how AI will alleviate some of their current frustrations and make their professional lives more fulfilling. The research found that three in 10 (30%) feel undervalued because they must undertake repetitive tasks for which they feel overqualified. Three-quarters (75%) spend up to a quarter of their time on manual tasks such as data collection, while almost two-thirds (63%) toil away on Excel spreadsheets.
When they were asked what could be done to reduce their frustrations, a significant proportion of younger professionals thought the culture or atmosphere in their office would improve with better software and more automation for burdensome tasks.
Nurturing younger staff is becoming more critical, even in a period of slow economic growth. Talented individuals are always in short supply, but the shortage of financial skills threatens to be a significant headache.
Businesses must offer careers that meet Generation Z’s desire for greater fulfilment and personal development. Long hours in return for significant salaries are no longer the sole answer.
Also, it is crucial to acknowledge that training for finance professionals needs to factor in how technology is shaping new roles. However, if those in charge are from a different demographic it can pose a mismatch or problem. This mismatch has already had repercussions in the US, where CPA sign-ups have declined.
AI capabilities are available – without risk
While the overall picture may appear a little downbeat, the research found that help is on its way, rescuing the more junior members of staff from their back-office backwater.
Almost all respondents said their organisation plans to implement new technology, which makes a huge amount of sense, given the advanced capabilities already available. There is no reason for organisations to wait for the arrival of a revolutionary generative AI solution.
At a rough estimate, 90% of the AI functionality that is of use to finance professionals is already available from financial management software providers. This has the advantage that it comes without the drawbacks of outsourced vulnerability to cyber-attacks, data leakage or copyright infringement. It also provides data and insights that are reliable and trustworthy – unlike the current versions of generative AI.
AI and analytics solutions will save time and give enthusiastic new entrants to the accountancy and finance profession greater scope to contribute value through financial analysis and strategic planning. More than half of the younger professionals surveyed by AccountsIQ (53%) said these are areas where they can make a positive difference.
There is little doubt that AI will have a significant impact on the work of the finance function and should help streamline many complex processes and introduce higher levels of efficiency. Integrations with current financial management packages are inevitable and have major potential. This is important for performance, efficiency and competitiveness, but also to retain younger professionals with scarce skills. AI may not be a panacea – but it will have a critical role to play.
- Darren Cran, COO, AccountsIQ
