For 2019/2020, ACCA is focusing on a research programme that examines the issues that impact the accountancy profession around the world, now and in the future.

Every quarter, ACCA will shine a strong spotlight on four themes, highlighting the power of digital technology; connections and partnerships; ethics, trust and sustainability and lastly careers, skills and employability. Each will focus on ACCA’s professional insights, alongside on-going developments to the ACCA Qualification.

We think these themes form a sound basis to drive skills, pride and advocacy among the profession, here in the Caribbean but also on the global stage.

As ACCA Caribbean prepares to celebrate its 20th anniversary, we’re looking back and looking ahead to what’s changed and what will change in the future.

A key area where change has been incredibly rapid is technology. This year is the 30th anniversary of the world wide web, a creation that has become so much part of our lives that we are now firmly part of the digital revolution and even evolution. In the past, the profession has been adept at using technology for the benefits it can bring, but what is the next big thing?

IS AI HYPE?

In mid-April, we published the first report in this annual programme of research, highlighting the theme ‘The Power of Digital’. Digital is arguably one of the biggest factors shaping the future of the profession and the roles accountants and finance professionals perform.

We have identified digital as one of our seven professional quotients for success, a necessary attribute for the profession to add value and build economies around the world. Alongside technical, ethical and professional skills, and emotional intelligence, the awareness and application of existing and emerging technologies — these are all necessary for the modern-day accountant.

In recent times, there’s been a lot of hype about Artificial Intelligence (AI) and the alleged threat it poses for the professions — not just accountants – but also lawyers and doctors.

AI is the intelligence demonstrated by machines rather than human beings. It is an encompassing term, covering a number of technological advances such as machine learning, which uses neural networks, statistics and operational research to identify insights in data without being programmed what to conclude; and also deep learning, which uses many layers of computing power and improved training techniques to identify patterns in data.

In our new report Machine learning: more science than fiction we have identified that machine learning will become a reality in the near future, with the hype surrounding it diminishing. A poll amongst 2,000 ACCA members in 111 countries reveal a third see AI as all or mostly hype, while nearly 60 per cent say that in three years’ time it will become a reality.

Our report highlights how new tech developments have a massive potential for the accountancy profession, and how machine learning – the ability of computers to ‘learn’ and make decisions or predictions based on analysis of large sets of data – is changing the working landscape for accountants.

As such, machine learning is a critical area of development for accountants. Looking ahead it will be crucial to understand its value and benefits, as well as the ethical challenges it presents. In all this, the starting point has to be a legitimate business need with a clear understanding of what it can bring to the organisation.

AI and machine learning can add value to the work accountants do – from generating valuable insights for business decision-making, to fraud detection, risk assessment, understanding complexities in taxation and also with more effective non-financial reporting. So the accountancy profession needs to understand how AI and machine learning works, especially given its role in influencing the trust we have in the decisions of these systems.

As with any technology, with power comes responsibility. With machine learning, ethical considerations are apparent, so accountants need to be mindful of this, and especially around decision-making by algorithm.

This is one of the most frequently discussed issues for AI and machine learning. This is due to the fact that Machine Learning algorithms, both supervised and unsupervised, may need to be properly interpreted to avoid confusing correlation with causation. This can be a complicated field of expertise.

DOES THE HYPE MATTER?

There is a lot of hype about AI, robotics and machine learning, making headlines and also making for good box office returns for films about robots taking over the world!

The potential of technology is truly mind-blowing. It is now so weaved into our everyday lives that we don’t even think about it. But what we have to remember is that human interaction – and especially team work – is still important. We still need humans to capture and interpret the power of data and technology.

Technology has moved beyond fantasy to very real business uses. That’s why all finance professionals should know how AI is evolving and be alert to how the developing capabilities could overlap with their impact on their roles. To prepare for the digital future, ACCA already examines a range of digital topics within its Masters level ACCA Qualification. It has also enhanced the digital content across many of the exams for students, while also ensuring digital is weaved into members’ continuous professional development.

Discussion and debates around machine learning and AI will continue. Some people will embrace it, some will be quizzical, others fear it. Only the reckless will avoid finding out more about it. There is no better time than now for professional accountants to start building greater knowledge and competencies in these areas.

Shelly Ann Mohammed is head of ACCA Caribbean.