Artificial Intelligence (AI) is capable of handling repetitive tasks, but accountants who embrace and integrate technology can concentrate on more valuable activities beyond basic number-crunching, according to Md Sajid Khan, Director - India at the Association of Certified Chartered Accountants (ACCA).
Khan emphasized in an interview with The Economic Times, "AI will replace those professional accountants who fail to understand and incorporate these technologies."
However, he noted that AI cannot replace strategic thinking, decision-making, or emotional intelligence. "Accountants are not just about crunching numbers; with the right technology, they can avoid routine tasks and focus on more impactful work," Khan added.
"There is a significant shortage of accounting professionals in India, leading to a surge in demand. The market, valued at $13.6 billion in 2020, is expected to grow to USD 20 billion by 2025," Khan stated.
Despite the growing demand, unemployment remains a pressing issue. Khan pointed out that the challenge lies in finding individuals with the right skills. "While employment is a concern, employability is equally critical," he explained.
Khan also highlighted the need for employers to access talent that meets global standards, even when outsourcing. He remarked, "Application and communication skills are often lacking in today's graduates, largely due to the rapidly changing landscape."
He further emphasized that effective collaboration and diversity are now key factors in the industry. Citing a McKinsey & Co report, Khan mentioned that CFOs are currently investing in technology, with a focus on building team capacity.
Khan noted that whether it's a "Big 4, Big 5, or Big 6," the critical factor is the extent to which local talent and values are integrated. He said, "Whether it's an Indian firm or a global one with a presence in India, what truly matters is how effectively Indian talent is utilized."
Khan also discussed the trend of businesses splitting into accounting and consultancy functions, attributing it to both the need for specialized expertise and regulatory demands. "Clear independence between different functions is essential to meet these standards," he told ETCFO.
He explained that while businesses used to rely on generalist consultants, there is now a growing preference for specialists who offer targeted skills and expert advice in specific fields. "This shift towards specialization is being driven by clients seeking more in-depth knowledge and expertise," Khan concluded.
