Will AI take over Accounting?

This AI thing is in a frenzy. Everyone is talking about AI. And people say that AI will eat up jobs. Especially in accounting and finance, people are going to be jobless.

Let me give you my hypothesis.

People said the same thing when computers were becoming popular. But what actually happened?

Because of mass computerization, things started to happen faster. Previously, it took almost 3-4 days for a bank check to be cleared. But now we can receive payments in a matter of seconds.

As things got faster, the overall economy grew. Because of this, everyone’s standard of living improved. That leads to more and more job creation.

If you don’t believe me, check approximately how many people were employed in the banking sector in 1990 and how many people are employed today.

Also, compare how many banks existed in India in the 90s vs. how many exist today.

The number of banks and the number of people who work in banks have only drastically increased over the last 25 years.

If computers were to take away the jobs, as feared at the time, there should be only some 5 banks and roughly 5000 people employed in banks today. But that’s not reality, right?

That’s the same way it’s going to be with AI as well. Processing time will get even faster.

Because of that, the economy will grow even faster, which will lead to more and more demand and, thereby, more and more job opportunities across all sectors, including accounting.

However, even if this AI thing really takes over as it is currently being projected, some of the jobs may get done by the AI itself.

But you need to understand one thing: no matter how fast computing gets, at the end of the day, the decision-making in business will still be done by humans only.

Therefore, if you ensure to get into a knowledge-based job that is not easily replaceable, then you don’t have to worry.

Remember, when calculators were invented, accounting happened through calculators? Humans still worked in accounting.

When computers were invented, accounting happened through computers. Humans still worked in accounting.

If AI really takes over, accounting will happen through AI. As long as there is money, accounting will always exist. And humans will still work in accounting, keeping AI as an assistant and not the boss.