By Alan Myers, Senior Regional Director and accountancy recruitment expert at Reed
In the age of artificial intelligence (AI) it is inevitable that businesses have started to embrace advancing technologies, however, they must also address the potential impact this has on employee morale. AI is used primarily for data and automation within the accounting sector and for many this is a welcome respite from mundane administrative tasks. But alongside the benefits there’s anxiety among employees with more traditional auditing and bookkeeping roles as they fear they will be phased out by new automated processes. The advancement in AI also poses the question of what jobs within the sector are next to be deemed obsolete? Causing growing panic and insecurity amongst those within the profession.
In this article, Alan Myers, Senior Regional Director and accountancy recruitment expert at Reed, explores how the accountancy industry can regain employee morale with the looming threat technology poses of replacing many jobs.
Research shows that 83% of clients are demanding more from their accountants today than they did five years ago, with 42% of clients now expecting accountants to offer business advice. This increase in workload demand has left accountants evaluating how they can streamline or automate their administrative and bookkeeping tasks, as they prove to be the most time-consuming.
This increased workload is leading to changes in process, with reports showing 67% of accountants prefer cloud accounting technology. For some, it is a welcome advancement, as it allows them to simplify and speed up collaboration with clients and improve the quality of their service.
It is clear why for many who face this increase in client demand embrace advancements in AI technology, however, for those in traditional auditing and bookkeeping roles it is more of an Armageddon than heaven.
How is AI is already impacting the accounting processes?
Just a few years back many still attributed AI as just a buzzword within the sector, however it has proven to develop at a rapid place. AI in accounting seems to be a perfect match as the technology can work just as a human would, it enables firms to improve efficiency, save on costs and uncover invaluable insights from their data.
It is reported that 13% of firms in the UK already use AI to automate their processes with 35% are expected to invest over the coming 12 months and 17% over the next three years. To the peril of many employees within the sector, studies revealed that a quarter of business leaders are looking to replace employees with AI, with six per cent claiming AI is already allowing them to trim staff numbers and costs.
The interest in AI software in the accounting industry is alarming to many, as it is seemingly set to replace some job roles. This can cause employees worried about job security to mentally check out at work. Many fear that it is inevitable that AI will take their jobs away from them leaving them to fear for their livelihoods, with some even considering moving to different industries.
Long-term career progression and the feeling of security is huge motivator within the workforce, advancing technologies has shaken this.
This can lead to a dip in productivity, which can ultimately lead to decrease in revenue, a grave concern especially during this tough economic climate.
How can firms regain morale and reassure employees?
To alleviate the panic and worry for all parties involved, businesses should work to reframe advancements in technologies as innovations within the sector and their firm. It is important for businesses to note that although AI can successfully take care of some tasks, which no doubt is revolutionary, it is also creating more roles within the industry. These new roles may prove to be an exciting new prospect for employees eager to upskill.
As of right now, we are seeing an increasing demand for financial accountants, statutory accountants and reporting accountants due to technological advancements and utilisation of AI. However, there are few candidates who specialise in these areas as it’s a new area.
Businesses should aim to capitalise on the potential to attract and retain top talent by utilising this new skill gap to create new job progression opportunities. Funding additional benefits and encouraging employees to take this opportunity to evolve their day-to-day practices and concentrate on more data-led and consultative approaches.
Creating a space for innovation and learning will reassure employees who fear being replaced by AI leading to many embracing the change instead of rejecting it and taking on new roles. In turn solving the dip in productivity and putting businesses back on the track of innovation and growth.
