The future of finance is here now for data, modelling, analytics and AI
Introduction
As the opening article for this knowledge series, I think it’s important to really understand the key aspect of what we see today in AI.
For many years I showed how I could change an Excel model through a visual presentation surface called Modeler and back then someone thought that was AI.
There are exciting verticals of AI like the generalised language models in ChatGPT, text and video synthesis I showed recently and of course some of the more widely used forms of algorithmic-driven advanced, predictive and prescriptive analytics (data science).
But the reality is there’s a lot that we can and need to do before we get to fully leverage AI, let’s walk before we run or strap on a jet pack!
This is not to say that I am not excited, but it’s also not to say that we need to panic or invest too heavily too quickly in the hype cycle.
Panic has already impacted our accounting and finance industry. The cries from bad marketers calling the death of compliance, accounting and auditing for decades, whilst the complete opposite is true.
The demand for well-trained, data-literate accounting and finance professionals is well in excess of the supply, and there’s a severe, almost tragic shortage of talented accounting, and finance people with those skills.
Many students in universities just don’t want to go down that career path for fear of disruption and automation of their jobs.
To be clear, the main purpose of the series is to give hope to accounting and finance professionals and educate readers on actual use cases, and foundations in data literacy and filter some of this craziness.
In the end, it all comes back down to data!
Human plus AI is better than AI alone!
Understanding Data Literacy (fundamental)
The series will hopefully help us realise that this is the golden age for our profession. Many don’t see it yet or feel it. But it requires a new type of accountant. One that is data literate and tech-savvy.
We have been a data-centric profession and function for decades with everything about accounting and finances being numbers, which is still data only now we need to structure how we work with data.
However, we do have to lift our game in the data space and become more data literate.
Equally important is tech savvy with concepts like Financial Modelling, Automation, Data Analytics, and of course the new scary AI.
AI is hitting us all square between the eyes at the moment with the likes of the ChatGPT hype cycle.
Show me the details!
This series will be broken into 6 main themes and we will release articles, videos and other content (some AI some not).
The topics are intended to help the complex workforce we have in accounting and finance with all the different generations working together, from digital natives to Baby Boomers.
We should remember this critical turning point and time in our profession which is both exhilarating and frightening at the same time. These are the themes we will cover in the series:
What are the current obstacles facing Accounting & Finance Today
AI and its Impact on Accounting and Finance
Business Intelligence for the Intelligent Accountant
Training your teams to enable decision-making during uncertainty
Business modelling skills are a must!
Risks of doing nothing, in the face of change
Data Interpretation, Communication and soft skills
One of the more important elements in the series is to recognize that it’s not just about technical skills. There are a lot of soft, communication skills that we need to understand and embrace let alone change management and human resources impacting the way people feel about all of this.
We have to prioritise making people feel supported and secure or at the very least a vital part of the process. A can-do attitude to embrace change, learning and leading people through this very uncertain time.
Most people are still stuck on copying and pasting, v-lookups, and pivot tables whilst the general awareness and use of data power tools (Power Query, Power BI etc) are very limited.
There is also a gap in embracing key skills and concepts, like Financial Modelling and Data Analytics, and more importantly communication and visualisation and storytelling in relation to those areas.
The fortunate ones will learn these new skills and have awesome career opportunities.
Typically finance has spent most of its time preparing and doing, and now we have to find new skills for communicating and influencing which is a massive paradigm shift that needs to happen.
We will be successful when we do this by combining the technical skills, technology, insights support, and training, wrapped around the soft skills.
Developing your teams through continued learning
The other important elements of the series are education and learning. We need to first become aware and familiar with what all this stuff is and how it impacts us.
How would you train your team in all of these dimensions whilst balancing careful change management and adoption? There is so much to work on whether it is automation or modelling skills, data analytics and advanced data modelling heading towards AI.
It’s a very big leap that we have to take and staring straight into the face of ChatGPT almost mocks us imitating potentially how easily our jobs are quickly replaceable.
In some use cases, this might be true but it’s not true for all areas, especially for the data-literate accountant and finance professional.
What I would say to you is the jobs we used to do are replaceable, but the jobs we need to do in the future will not be replaced for some time, and we will go through that in the series.
Some jobs have yet to be created as a result of the new tech.
Challenges and Opportunities (risks that exist and you need to be aware of)
Of course, with all change, be it technology or otherwise, there is a risk if you buy the wrong technology, solve the wrong problem or invest in the wrong people.
There’s a risk that you get the timing of all of this wrong and actually, fundamentally your business model doesn’t suit the current times. Innovation just for the sake of it is dangerous so we have to be strategic and focused on outcomes, not blindly flowing the flock.
There are risks with everything, but the biggest risk of all is doing nothing!
AI has accelerated this year more than any other and yet a lot of what is done in accounting and finance has not changed.
We simply cannot ignore the impact of AI particularly generalized language models.
No, it’s not perfect and it gets things very wrong too, but it’s getting better and we will showcase some of these areas.
Conclusion
So join me for an exciting journey through this series as we wander from Financial and Business Modelling, Analytics, Automation and of course AI. This is about fundamentally revisiting the future of accounting and finance in the context of AI.
I believe this is the golden age for our profession with so much potential if we are willing to embrace it.
