Page 31 - CMA Journal (Nov-Dec 2024)

The Impact of Artificial
Focus Section

Intelligence on the

Future of Management

Accountants

The spreadsheet was invented in 1979, and at the time, accurate financial
there were widespread fears that it would lead to planning. Additionally, a
massive job losses among accountants. However, the management
opposite occurred. Instead of rendering accountants accountant must be
obsolete, spreadsheets empowered them to add far skilled in using
greater value to their work. They were able to Enterprise Resource
accomplish more, contribute more strategically to their Planning (ERP) systems
businesses, and, as a result, the demand for accountants like SAP or Oracle, as
actually grew. Today, there are more accountants than well as advanced Excel
ever because the profession adapted and leveraged the functions and data
tool to enhance its role. visualization tools such
as Power BI, to analyze
Now, the question arises: Will we see a similar outcome and present financial Mumtaz Hassan, FCMA
with Artificial Intelligence (AI)? While there are parallels, Financial Controller,
we must approach this with caution. AI is not just a data effectively. Nishat Mills Limited and
simple tool like a spreadsheet; it is far more complex and Understanding Member, ICMA R&P Committee
taxation, regulatory
capable. Unlike spreadsheets, AI does not follow fixed compliance, and risk
rules—it can analyze data, learn, adapt, and make management further enhances their ability to ensure
decisions in ways that mimic human cognition. This financial stability and guide strategic investments.
presents both opportunities and challenges. While AI has
the potential to augment human capabilities and Since AI can think and reason, it has already acquired—or
support the management accountancy profession, it also will soon acquire—the technical skills for budgeting,
requires careful consideration of its broader implications forecasting, cost analysis, performance management,
for future generations of management accountants. and investment appraisal. It will be able to perform these
tasks with far greater accuracy and speed than humans.
Looking ahead, AI is undoubtedly a major force in
evolving the management accountancy profession. It is AI is increasingly being integrated into accounting
already making an impact in the world of accounting, software, with many major providers developing
and that influence will only grow over time—though its advanced AI-powered tools. One example is automated
exact trajectory remains uncertain. reconciliations, where AI analyzes transactions,
recognizes patterns, and determines the correct coding
How will AI impact the management accounting and matching based on transaction characteristics.
profession? To answer this, we must first revisit the role of
a management accountant. Management accountants Even popular accounting software like Oracle NetSuite,
help businesses make informed financial decisions by QuickBooks, and Xero now incorporate AI-driven
analyzing costs, budgeting, and forecasting financial automation, greatly reducing manual transaction
performance. Unlike financial accountants, who focus on coding time.
historical financial statements, management
accountants provide insights that drive planning,
decision-making, and strategy. To fulfill this role Accounting
and
effectively, a management accountant needs two key financial
reporting
Data
skill sets: technical skills and soft skills. analytics Financial
analysis

The Impact of AI on Technical Skills
ERP and
At present, a management accountant is considered to Accounting managment
Cost
have a strong foundation in technical skills, enabling software Technical
them to effectively analyze financial data, manage costs, skills
and support decision-making. Proficiency in accounting,
financial reporting, budgeting, and forecasting is Investment Budgeting
and
essential for tracking business performance and ensuring appraisal forecasting

efficient resource allocation. Knowledge of International
Financial Reporting Standards (IFRS), along with Risk Taxation
and
management compliance
expertise in cost management techniques, enables
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