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Artificial Intelligence
THE CHARTERED ACCOUNTANT

Harnessing AI: Shaping the Future of

Work for the Chartered Accountants
Artificial intelligence (AI) is rapidly transforming the
accounting and auditing profession presenting both
opportunities and challenges. The Chartered Accountants
are now at the crossroads of Technological advancements,
particularly the rise of Artificial Intelligence (AI), which
is fundamentally changing the way accounting or
auditing is conducted. While some fear job displacement,
others see AI as a powerful tool to augment human
capabilities, enhance efficiency, create new opportunities,
CA. Dhaval Kodilkar and ultimately shape the future of the profession.
Member of the Institute By handling repetitive tasks, these AI advancements are in
fact freeing up accountants to focus on strategic analysis and
client relationships where they can add more Value.

What is Artificial different levels of AI, with some

Intelligence (AI)?
Artificial Intelligence refers to
computer systems that can perform
tasks typically requiring human
intelligence. This can include
things like reasoning, problem-
solving, and learning. There are
being very specific (like a program
that recognizes faces) and others
that are more general-purpose.
AI is already being used in many
different fields, from healthcare to
finance, and it’s expected to play an
even bigger role in the future.

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Broadly there are three types of AI:

Narrow AI (Weak AI) E.g. Voice Assistants like Siri or Alexa, recommendation systems, image
recognition software, and chatbots.

 This type of AI is designed and trained for a specific task or a narrow range of tasks. Narrow AI systems excel at
performing a particular task very well, but they lack the ability to generalize their knowledge beyond that task.

General AI (Strong AI) E.g. Tools like ChatGPT, Gemini, Co-pilot etc.

 General AI refers to artificial intelligence that exhibits human-like intelligence and can understand, learn, and
apply knowledge across different domains. Unlike narrow AI, which is focused on specific tasks, general AI
would have the ability to perform any intellectual task that a human can do. Achieving true general AI is still a
developing concept and yet to be fully realized.

Superintelligent AI This remains theoretical concept as of now.

 This hypothetical type of AI surpasses human intelligence in every aspect. Superintelligent AI would possess
cognitive abilities far beyond those of the brightest human minds and could potentially solve complex problems
and make decisions at a level incomprehensible to humans.

The Rise of AI in Accounting Case Study: Robotic Process Automation by using

The accounting profession is undergoing a significant Microsoft Power Automate (formerly Microsoft
transformation driven by the integration of Artificial Flow):
Intelligence (AI) technologies. This encompasses It’s a powerful tool for automating repetitive tasks
various advancements, including machine learning, within the Microsoft ecosystem.
natural language processing, and robotics, all of which
are reshaping how accountants operate and deliver A small accounting firm, struggling with a manual
and time-consuming accounts payable process has
services. Over a last couple of years AI has impacted in
automated it using Power Automate which helped
the following areas:
them improve the accounting efficiency by 50% and
1. Automating the Mundane: Modern reduce processing errors by 95%.
accounting application with AI- Here are the key steps that automated
powered tools are revolutionizing this process:
repetitive tasks such as AP
data entry, Auto Bank 1. Upload the invoices into
Power Automate.
Reconciliation, and routine Artificial Intelligence
bookkeeping. The time has
gone where accountants refers to computer systems 2. Train a model to identify
the important data points
were manually doing that can perform tasks on the invoice that are
data entry for the AP
invoices, as these OCR
typically requiring human required to post the
purchase voucher, such as
based applications can intelligence. This can include invoice number, supplier
post the AP accounting things like reasoning, name, Description
Goods / Services availed,
of
entry by reading the PDF
soft copies of the invoices.
problem-solving, and Net amount, GST & Gross
This automation liberates learning. amount etc.
Chartered Accountants 3. Create a flow that will
(CAs) from time-consuming automatically convert those
administrative tasks, allowing datapoints on the invoices into Excel
them to redirect their efforts towards tables.
more strategic endeavors such as financial
4. Import the Excel / CSV / XML into the accounting
modeling, analysis, and providing insightful client
software.
consultations.

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Artificial Intelligence
THE CHARTERED ACCOUNTANT
This eliminates manual data entry, reduces errors,
and frees up valuable time for the team to focus
on higher-value tasks like client consultations and
financial analysis.
2. Data Analysis on Steroids: AI’s ability to analyze
vast amounts of financial data at incredible speed
enables CAs to uncover intricate trends and patterns
that might elude human analysis. These data analysis
applications allow to run the multiple scenario’s, Cash
Flow analysis, Cash Runway predictions etc. that
assists the businesses to make the quick decisions.
By harnessing AI-driven data analysis, CAs can offer
clients deeper insights and more informed, data-
driven advice, thereby enhancing the value they
bring to their clients’ businesses.
Case Study: MS Power BI to Boost Cash Flow
Management
CA’s can leverage the MS Power BI to provide
Predictive & Cash Flow Analysis Services to the
Businesses which will help them in making better
financial decisions. Here are quick use cases for MS
Power BI.
1. Consolidate Data: Integrate data from various
sources e.g. Accounting ERP, CRM, Bank
Statements etc. into a central location for easy
access and analysis.
2. Visualize Insights: Create charts and graphs
based on the Historical data to clearly represent
cash flow trends, identify patterns, and provide
support for data-driven decisions.
3. Scenario Modelling: Model different scenarios
(e.g., increased sales, changes in production
costs, Marketing costs, Logistics costs etc) and
see their impact on cash flow forecasts.
4. Interactive Dashboards: Develop interactive
dashboards to monitor cash flow in real-time
and facilitate informed decision making by
management.
Combining analytical power with Power BI’s
visualization and scenario modelling empowers CAs
to offer valuable insights in Real Time, ultimately
improving client businesses.
3. Streamlined Audits: The integration of AI is
revolutionizing the audit process by streamlining
procedures and enhancing efficiency. AI algorithms
can automate audit tasks such as Verification of the
AP / AR balances, Aging analysis, Ratio analysis,
GST & TDS reconciliations etc. which significantly
reduces the time and resources traditionally
required. Additionally, AI systems can identify
potential anomalies and fraud risks with greater
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accuracy, leading to more effective and thorough
audits.
Case Study: Using Gen AI tool like Microsoft Co-
Pilot in Excel for Audit
CA’s can automate tedious task like TDS, GST &
other ledgers reconciliations process by using the
Microsoft Co-Pilot.
Here are the steps involved in the automating GST
reconciliations:
1. Download the GSTR-2B data and the Purchase
ledger in excel file for the entire period be it a
month or year.
2. Provide the precise prompt to the Co-pilot
for reconciling the transaction entries in two
tables based on the GSTIN and provide the
discrepancies such as Mismatch in amounts,
Invoice no’s, ITC availability etc. supplier wise.
3. The more these prompts are defined in detail,
the more in-depth analysis & query results it
will provide in the Excel table with the various
discrepancies in the two data sets.
4. This will save your time in setting up the multiple
formulas in the excel tables.
Using Co-pilot to automate such reconciliation
tasks can significantly reduce the time required
to complete them. This can free up chartered
accountants’ time to focus on other tasks or onboard
more clients.
4. Evolving Client Service: AI-powered chatbots and
virtual assistants, Intelligent Auto mail Generation
etc. are reshaping how accountants interact with
their clients. These digital assistants can provide
basic accounting services and address general client
inquiries around the clock, enhancing accessibility
and responsiveness. As a result, CAs can dedicate
more time to fostering stronger client relationships
and invest their time where they add value to the
client businesses.
Case Study: Generating personalized Emails
using ChatGPT and automating mail reminder
using VBA Codes:
Major part of the CA’s time goes into handling client
communications. Mailing process can be automated
using Chat GPT & VBA codes as follows:
1. Set Macro for the customised mail requests for
TDS, GST, ITR & other accounting data using
the VBA code to client for the entire year.
2. VBA code can be generated from Chat GPT
and then Setting it up in the macro in Excel with
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THE CHARTERED ACCOUNTANT
the client communication details like subject of
mail, purpose of data request, name, email id
etc.
3. This eliminates the need to send individual
emails and ensures all clients are contacted.
This will save at least 30% of time being spent in the
routine client communications by the CA staff.
There are several platforms like Artibot & Virtual
Spirits that offer pre-built chatbots specifically
designed for accounting firms. These platforms
often come with templates and functionalities
geared towards common accounting tasks and client
inquiries. This chatbots can also be customised to
suite your area of Practice.
Overall, the integration of AI into the accounting
profession is driving increased efficiency, accuracy,
and client-centricity. It enables accountants to elevate
their roles from mere number-crunchers to strategic
advisors in today’s rapidly evolving business landscape.
By leveraging AI technologies, accountants can better
meet the evolving needs of their clients and remain
competitive in the digital age.
Challenges and Considerations
While AI offers a powerful toolkit for accountants, it’s
not without its challenges. Here are some key areas of
concerns:
1. Job Displacement and Reskilling: Automation
through AI could potentially eliminate some tasks
currently performed by Chartered Accountants
(CAs). For example, AI-powered OCR tools can
handle routine bookkeeping and data entry with
high accuracy and speed. This raises concerns
about job displacement, particularly for entry-level
accountants. However, the impact is likely to be a
shift rather than outright replacement. CAs will
need to upskill themselves to focus on higher-value
activities. This could involve developing expertise
in data analysis, using AI tools for deeper financial
insights, and honing their communication and
problem-solving skills to translate complex data into
actionable advice for clients.
2. Upskilling Needs in an AI-driven World: The
traditional skillset of an accountant may no longer
be sufficient in the face of AI. CAs will need to
become more comfortable working alongside AI
tools. This means developing skills like data analysis,
critical thinking, and problem-solving to interpret
the insights generated by AI. For instance, AI
can identify unusual financial patterns, but a CA’s
expertise is needed to understand the underlying
reasons and determine if they represent a risk or an
opportunity.
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3. The Ethical Considerations of AI: Gen AI
algorithms are only as good as the data they’re
trained on. If the training data contains biases, the
AI tool might perpetuate those biases in its results.
For example, an AI tool used for loan approvals
could inadvertently discriminate against certain
demographics if the historical data used to train it
reflected existing biases in the lending system. CAs
have a responsibility to be aware of these potential
biases and ensure the ethical application of AI tools
in their work. The results provided by the Gen AI
tools may not be always accurate & reliable. Hence,
CAs should actively mitigate any potential for bias in
the resulting recommendations.
By acknowledging these challenges and proactively
developing the necessary skills, CAs can ensure they
remain valuable assets in the AI-powered accounting
landscape.
Harnessing AI for Success
CAs can navigate the changing landscape and leverage
AI to their advantage by taking the following steps:
1. Embrace Continuous Learning with a Growth
Mindset: The accounting profession is no longer
static. CAs who thrive in the AI era will be those who
embrace lifelong learning. This means attending
workshops, taking online courses, or exploring
certifications related to AI and its applications
in accounting. Understanding how AI works, its
capabilities, and limitations allows CAs to collaborate
effectively with these tools and ensure they’re used
appropriately. For instance, CAs can learn about
natural language processing (NLP) to leverage AI-
powered software that analyzes financial contracts
and identifies potential risks or inconsistencies.
2. Shift Focus to Value-Added Services: As AI
automates routine tasks like data entry and
bookkeeping, CAs can dedicate more time to
delivering high-value services that require human
expertise and judgment. This includes strategic
consulting, where CAs use their financial acumen
and industry knowledge to advise clients on
growth strategies, mergers and acquisitions, or risk
management. For example, AI can analyze vast
amounts of market data, but a CA’s expertise is
crucial in interpreting these insights and formulating
a tailored financial strategy for a specific client.
3. Invest in Upskilling for the AI Era: CAs will need
to develop new capabilities to complement AI tools.
This could involve learning data analysis techniques
to extract meaningful insights from financial data
generated by AI or acquiring basic programming
skills to understand and potentially customize AI
tools for their specific needs. Additionally, with
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THE CHARTERED ACCOUNTANT
AI becoming more integrated into accounting
processes, cybersecurity becomes paramount. CAs
can further enhance their value by understanding
cybersecurity best practices and implementing them
to protect sensitive financial data.
4. Advocate for Ethical AI: As AI plays a more
prominent role in accounting, ethical considerations
become critical. CAs have a responsibility to ensure
the responsible development and deployment of AI
tools within the profession. This involves advocating
for transparency in AI algorithms and scrutinizing the
data used to train them to mitigate potential biases.
For instance, CAs can promote the use of diverse
datasets to train AI tools used for loan approvals,
ensuring they don’t perpetuate historical biases that
could disadvantage certain demographics.
By embracing these strategies, CAs can position
themselves as valuable partners in the AI-powered
future of accounting. This proactive approach ensures
they remain relevant and continue to deliver exceptional
service to their clients in an ever-evolving landscape.
The Dawn of New Opportunities: Emerging
Roles for CAs in the AI Era
The integration of AI into accounting isn’t just about
automation; it’s about creating exciting new avenues for
Chartered Accountants (CAs) to expand their skillsets
and explore fresh career paths. Here are some of the
most promising emerging areas:
1. AI Implementation and Integration Specialists: As
businesses embrace AI, a gap emerges – the need
for professionals who understand both accounting
principles and AI technology. CAs who bridge this
gap become invaluable assets. They can specialize in
helping companies seamlessly integrate AI solutions
into their existing accounting workflows. This might
involve tasks like:
 Tailoring AI tools: Assessing the company›s
specific needs and identifying AI solutions
that address those needs (e.g., AI-powered
bookkeeping for streamlining data entry or
fraud detection tools for enhanced security).
 Data Integration: Ensuring smooth data flow
between existing accounting systems and the
new AI tools to create a unified and efficient
workflow.
 Staff Training: Providing training and support to
staff on effectively utilizing the new AI systems,
maximizing their benefits and ensuring smooth
adoption.
2. AI Auditing Experts: With AI handling more
accounting tasks, robust auditing practices become
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even more crucial. CAs who develop expertise in
AI auditing can ensure the integrity and reliability of
AI-generated data. This could involve:
 Developing new audit procedures: Creating
specialized audit methodologies specifically
designed to evaluate AI tools used within the
accounting process.
 Testing AI accuracy: Assessing the accuracy
and efficiency of AI algorithms used in tasks like
data analysis or transaction processing.
 Mitigating bias: Identifying and mitigating
potential biases within AI algorithms and the
data used to train them, ensuring fair and ethical
applications in the accounting process.
3. Data Analytics and Visualization Gurus: AI excels at
generating vast amounts of data, but it takes human
expertise to translate this data into meaningful
insights. CAs with strong data analytics skills can
bridge this gap. They can act as data analysis and
visualization gurus, performing tasks like:
 Interpreting complex data sets: Analyzing
the intricate data generated by AI tools to
identify trends, patterns, and potential risks or
opportunities.
 Storytelling with data: Transforming complex
data sets into clear and concise visualizations
like dashboards or reports that effectively
communicate financial health, risks, and
opportunities to stakeholders, allowing
informed decision-making.
These are just a few examples, and the future holds
many more possibilities. By embracing continuous
learning and developing new skillsets, CAs can ensure
they remain at the forefront of the accounting profession
in the AI era.
Conclusion
AI is not a threat, but rather a powerful tool that can
be harnessed to enhance the capabilities of CAs.
By embracing AI and continuously developing their
skillsets, CAs can solidify their position as trusted
advisors and thrive in the future of work.

Author may be reached at
Dhavalkodilkar@gmail.com and eboard@icai.in
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