At the recent Montana Society of CPAs’ Annual Conference on AI, a participant inquired about the trajectory of AI within the profession. My response was straightforward: When industry giants like EY and KPMG are committing to invest billions (yes, with a B), it’s a clear sign that the future of accounting will undergo a radical transformation in this decade. Disregarding AI in this context would be a monumental mistake of significant proportions!
Ernst & Young (EY) and KPMG, among other major accounting firms, are making substantial investments in artificial intelligence (AI). This strategic shift is not just about keeping up with the times, but about leveraging AI’s potential to enhance service offerings, improve audit quality, boost productivity, and attract new talent. These firms are positioning themselves as frontrunners in the competitive market for accounting professionals.
EY’s $1 Billion Investment in Technology and Talent
EY has announced a $1 billion investment over the next three years, focusing on improving compensation, technological advancement, and the overall workplace experience for young professionals. This initiative includes a significant increase in starting salaries for CPA-track professionals, positioning accounting graduates on par with other business degree holders. Additionally, EY is enhancing its AI-powered audit and tax software to boost audit quality, productivity, and risk assessment.
The firm’s new EY 360 Careers experience will launch in 2025. It will offer campus recruits comprehensive training and development opportunities to grow as leaders within the organization or advance to C-suite positions. This program is part of EY’s broader strategy to ensure a strong CPA pipeline by providing pathways to CPA licensure and continuous learning opportunities.
EY’s AI initiatives are comprehensive and forward-thinking. They include the launch of the EY.ai platform, a powerful tool that seamlessly integrates AI into the firm’s technology platforms and solutions. This platform is designed to help clients adopt AI confidently and responsibly, thereby enhancing business transformation through AI-driven insights and automation. A notable component of the EY.ai platform is the large language model, EY.ai EYQ, which was developed to support EY professionals with advanced AI skills and capabilities.
KPMG’s $2 Billion Investment in AI and Cloud Services
KPMG is also making a substantial investment in AI and cloud services, committing $2 billion to these technologies over the next five years. This Investment is part of KPMG’s strategy to enhance its audit, tax, and advisory services through advanced technology. By leveraging AI and cloud services, KPMG aims to improve the efficiency and effectiveness of its audits, providing deeper insights and more reliable risk assessments. This move positions KPMG as a critical player in the digital transformation of the accounting profession.
KPMG’s AI capabilities include using advanced analytics and machine learning to automate routine tasks and improve the accuracy of financial audits. For example, the firm’s Clara platform integrates AI to analyze large datasets, identify anomalies, and provide real-time insights, thereby enhancing the quality and speed of audits.
Attracting and Retaining Talent Through Technological Advancement
Integrating AI into accounting practices is not just about improving service delivery; it’s also a strategic move to create a more appealing and innovative career path for young professionals. By offering competitive compensation and state-of-the-art technology, firms like EY and KPMG are not only attracting but also retaining top talent. This emphasis on technological advancement and talent development is a beacon of hope for young professionals, signaling a promising future in the accounting profession.
For instance, EY’s focus on AI and continuous learning ensures that accountants are well-equipped to handle the evolving demands of the profession. This emphasis on technological proficiency and regulatory understanding is crucial for developing a diverse skill set that can adapt to future challenges. The firm’s comprehensive learning program includes AI skills development and responsible use of AI, building on the AI, data, and analytics curriculum introduced in 2018.
Similarly, KPMG’s investments in AI and cloud services are designed to create a more engaging and forward-looking work environment. By integrating AI into its audit and advisory services, KPMG is providing its professionals with the tools they need to deliver high-quality services and stay ahead of industry trends. This approach enhances the firm’s competitive edge and makes it an attractive destination for top talent.
The Broader Impact on the Accounting Profession
The adoption of AI by major accounting firms is reshaping the profession in several ways:
- Enhanced Audit Quality: AI tools enable more accurate and efficient audits by automating routine tasks, analyzing large datasets, and identifying anomalies. This leads to higher-quality audits and more reliable risk assessments.
- Increased Productivity: By leveraging AI, firms can streamline processes and reduce the time spent on manual tasks. This allows professionals to focus on more strategic and value-added activities.
- Improved Client Services: AI-driven insights provide deeper and more actionable insights for clients, enhancing the overall quality of advisory services.
- Attracting Top Talent: Investments in AI and technology make the accounting profession more appealing to young professionals, helping firms attract and retain top talent.
The Future of Accounting
As the accounting profession continues to evolve, the adoption of AI and other advanced technologies will play a pivotal role in shaping its future. Firms that invest in these technologies and focus on enhancing the overall career experience for young professionals are likely to attract top talent and maintain a competitive edge in the industry.
As an AI speaker and author, I believe that by emphasizing technological advancement and talent development, EY and KPMG are setting a new standard for what it means to be a modern accounting firm. These investments are not only transforming the way audits are conducted but also redefining the career landscape for aspiring accountants.
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Additional Sources
– EY Announces Launch of Artificial Intelligence Platform EY.ai Following $1.4 Billion Investment: [EY Global](https://www.ey.com)
– EY Plans $1 Billion Investment to Entice Young Accountants: [Accounting Today](https://www.accountingtoday.com/news/ey-plans-1b-investment-to-entice-young-accountants)
– KPMG Plans $2 Billion Investment in AI and Cloud Services: [WSJ](https://www.wsj.com/articles/kpmg-plans-2-billion-investment-in-ai-and-cloud-services-e4fd0dd5)
