28 February 2024 , 11:56
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The chief executive of accounting software firm Sage, Steve Hare, has said that artificial intelligence is set to "change the nature" of the accountancy profession.
He believes it will lead to fewer but more productive jobs. Mr Hare explained that many small businesses will soon rely on the advance of generative AI to handle basic accounting work, such as tax returns, which were once the mainstay of the industry.
He also suggested that AI will help address a growing shortage of workers for more basic finance and accounting jobs. This issue has been causing recruitment problems for many small and medium-sized businesses.
Mr Hare predicted that there will be no more accountants dealing with boxes full of paper receipts and calculating tax returns. "All of that will be digitalised there won't be any paper receipts and you won't need lots of people to put together these accounts," he said.
While there will be fewer of these jobs, Mr Hare believes that we'll end up with a lot more jobs contributing added value and creating growth in the economy. He added: "Smaller businesses can't hire the people to do these mundane jobs young people don't want to do these mundane repetitive tasks."
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"That's how young people think today, because they've grown up in a digital age. They think 'a computer can do that, I'm not doing it'. Some businesses will always want to go to an accountant for tax advice."
"I don't see the day when someone will trust a machine to give them tax advice. It's evolving into a more advisory role. The reason I'm optimistic is that by driving this level of productivity, it will enable us to have economic growth," he explained.
His remarks were made as Sage introduced its new AI tool called Sage Copilot, which aims to transform how accounting, finance, and people management are done. This new tool is designed to take care of routine tasks and also suggest ways to save money and make business better.
It's going to help with predicting finances, managing money, creating and sending out bills, automating work, and finding mistakes. Sage Copilot will first be available in the UK, starting in April for some customers who already use Sage Accounting, then more people can use it in May, and later it will be ready for Sage for Accountants and other products during the year.
Sage said that other products and countries will get access to it after that. Mr Hare explained: "Sage Copilot revolutionises small and mid-sized businesses and accountant productivity by bringing trusted AI into the heart of their operations automating tasks and providing insights to fuel growth and efficiency.
"It's not just an AI feature; it's a commitment to building a future where businesses can focus on their goals, supported by AI. It's called a copilot, not pilot it's an assistant. AI can give you prompts it can help do things and problem solve. It can help, not replace."