The Thomson Reuters Institute’s 2024 Generative AI in Professional Services study offers a thorough synopsis of the rapidly expanding application of GenAI in a number of professional domains, such as risk, accounting, legal, tax, and government.
The broad range of feelings surrounding GenAI, from joy and hope to reluctance and worry, is captured in this study. Notwithstanding these divergent opinions, a sizable majority of professionals see the relevance of GenAI to their work, while fewer are persuaded that it is an urgent need for day-to-day operations.
The audit sector is unique in that it has acknowledged the potential of GenAI to transform several processes, including data collecting, predictive analytics, and the identification of possible areas of concern. But it also has issues with data security, accuracy, and an excessive dependence on technology.
The study highlights the delicate balance that must be struck between using GenAI to support human labor and making sure that it doesn’t take the place of crucial components of expert judgment and decision-making. Let’s examine the report’s findings in more detail.
Adjustment To The Digital Age
With the advent of GenAI, the audit sector faces a precipice. Businesses are using these technologies into their operations more frequently, which indicates a move toward more creative methods. This adaptation aims to improve efficiency and accuracy by utilizing technology rather than just keeping up with it. In a different study, the Thomson Reuters Institute found that almost half (44%) of participants in its 2024 Audit Survey said their audit companies were integrating or had already included advanced technology, such as GenAI.
“A lot of accounting and tax organizations are beginning to switch from standalone spreadsheets to more integrated databases and network-connected systems. But these adjustments take time, and not every company adopts them.
— The 2024 Generative AI in Professional Services research from the Thomson Reuters Institute
Perception Of Relevance
Significantly more experts from tax, accounting, and audit businesses (52%) in 2024 than in 2023 acknowledged the need to implement GenAI in their operations. In the corporate sector, the same opinion increased from 53% to 60%. This increasing agreement emphasizes how important GenAI is thought to be in updating audit procedures.
AI’s Effect On Billing And Audit Tasks
Though optimistic, there are reservations. Of the tax firm respondents, 38% anticipate a moderate increase in billing rates, while only about 2% anticipate a considerable increase. On the other hand, a negligible percentage predicts a decline.
Concerns about the possible effects of GenAI on employment are also being considered, as it may result in job losses as well as the emergence of new positions and specializations.
AI Guidelines And Policies For Auditing Firms
The absence of explicit instructions from clients about the integration of GenAI into audit services is one of the difficulties audit firms face. This lack of guidance points to the necessity of laws governing the application of GenAI and guaranteeing its moral acceptance. For instance, only 12% of businesses said in the poll that their companies had policies regarding the usage of GenAI. Furthermore, only 3 percent reported having GenAI-specific regulations. Policies that limit illegal usage and offer precise frameworks are desperately needed to guarantee that the use of GenAI is both morally right and advantageous.
The Future Of Employment
Significant operational changes are anticipated as a result of the integration of GenAI. Approximately 3% of respondents currently believe that having knowledge of AI or GenAI is necessary for job seekers, while 21% think it is a desirable ability. This change suggests that as technology becomes increasingly integrated into everyday operations, occupational roles and titles will probably change as well.
Proactive Auditor Measures
Auditors are actively investigating and utilizing GenAI technology rather than merely being passive observers. This proactive strategy is essential for capitalizing on technology innovations and maintaining competitiveness in a market that is changing quickly.
“As the research demonstrates, forward-thinking companies have already started investigating how GenAI may transform the nature of work in the future, while those without such a disposition or preparation run the risk of falling behind rapidly.”
— The 2024 Generative AI in Professional Services report from the Thomson Reuters Institute
When it comes to GenAI, audit experts are cautiously optimistic. Although the advantages are acknowledged, it is also understood that in order to successfully negotiate this new environment, comprehensive policies and organized direction are required. It will become increasingly important going forward for audit companies of all stripes to carefully and strategically interact with AI-powered technologies.