Page 32 - CMA Journal (Nov-Dec 2024)

Focus Section

Another common application is in risk management,
where AI analyzes large datasets to identify potential risk

areas. Many AI-equipped accounting programs can flag Leadership
anomalies that may indicate errors or fraud in revenue,
payroll, or other financial transactions.
Adaptibility

One of the most impactful AI advancements is likely to and learning Teamwork
come from Microsoft’s Copilot suite, given its integration ability
into widely used Microsoft tools. This will have a major Soft
influence on management accounting and other
knowledge-based professions. Microsoft has skills
intentionally branded these tools as "Copilots"—
Problem
designed to assist users rather than replace them. Studies Attention to solving &
on AI-driven productivity gains suggest that these tools details decision
significantly improve efficiency, allowing accountants to making

be more productive and focus on higher-value tasks.
Communication
AI is transforming the management accountancy skills
profession by automating repetitive tasks, enhancing
data analysis, and improving decision-making processes.
AI-powered tools can process large volumes of financial
data quickly and accurately, reducing the time spent on automation increases, professionals must enhance their
manual data entry, reconciliations, and transaction analytical, strategic, and advisory skills to stay relevant.
processing. AI-driven predictive analytics also enhances The role of management accountants will shift toward
budgeting and forecasting, helping businesses make interpreting AI-generated insights, providing business
more informed financial decisions. Additionally, AI recommendations, and ensuring ethical financial
chatbots and virtual assistants support accountants by practices. Continuous learning and adaptability will be
providing real-time insights and answering financial essential, as professionals must stay updated on AI
queries, increasing efficiency and productivity.
advancements, data analytics, and emerging financial
The key question is: does a management accountant still technologies. Instead of focusing on AI-automatable
need to learn technical skills like double-entry technical tasks, management accountants should
accounting, regression analysis, activity-based costing, prioritize developing soft skills, particularly analyzing
break-even analysis, and Monte Carlo simulation? and effectively communicating AI-generated insights.
Probably not—because AI can now perform these tasks Conclusion
faster and more accurately than a human.
The Impact of AI on Soft Skills The rise of AI serves as a wake-up call for management
accountants to adapt to rapid change. Their role is
Beyond technical expertise, soft skills are crucial to a evolving from merely crunching numbers to interpreting
management accountant’s success. Strong analytical and financial data and providing strategic advice. Rather than
problem-solving skills help accountants interpret focusing on technical tasks that AI can automate,
financial trends and identify cost-saving opportunities. management accountants should prioritize developing
Effective communication skills are necessary for soft skills, such as analyzing and effectively
explaining financial data to non-financial stakeholders communicating AI-generated insights.
and influencing business decisions. Management This transformation also necessitates a gradual shift in
accountants must also demonstrate leadership and the curriculum of the Institute of Cost and Management
teamwork skills, as they often collaborate with multiple Accountants of Pakistan (ICMA Pakistan) and other
departments to ensure financial goals align with the management accountancy bodies. Educational
company’s strategic objectives. Attention to detail is programs should be updated to emphasize data
critical for maintaining accuracy in financial reports, analytics, critical thinking, and strategic decision-making,
while adaptability and continuous learning help better equipping professionals for the future of
professionals stay updated with changing regulations, management accounting.
economic conditions, and emerging financial
technologies. About the Author: Mumtaz Hassan is a Fellow Member of ICMA
International, a Fellow Member of the Association of Chartered
While AI has shown great promise in applying technical Certified Accountants (ACCA), and an Associate Member of the
skills to management accounting, it is unlikely to replace Institute of Chartered Accountants in England and Wales (ICAEW).
humans in soft skills. AI’s technical capabilities will He is currently serving as Financial Controller in Nishat Mills Limited.
streamline many processes and take over certain He has more than 20 years of experience in the field of Accounts and
technical roles, bringing both challenges and Finance. He is also the current member of the ICMA Research and
opportunities for management accountants. As Publications Committee.

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