Francesca Lagerberg, Global CEO of Baker Tilly International, Sheds Light on AI in Accounting
At the Grand Hyatt Seoul in Yongsan District, Francesca Lagerberg, CEO of Baker Tilly International, shared her insights with Money Today about the future of artificial intelligence (AI) in accounting. The global accounting network, founded in 1987 in London, operates 658 offices across 145 countries and ranked ninth globally based on annual revenue according to a report by the global accounting monthly IAB.
Lagerberg, a seasoned tax expert and lawyer with over 30 years of experience in global networks and international business, took the helm at Baker Tilly during the COVID-19 pandemic. Despite economic volatility, under her leadership, the firm achieved double-digit growth rates for two consecutive years, hitting $5.2 billion in revenue last year.
The CEO emphasized the strategic advantages offered by Baker Tilly’s global network of individually operating member firms, attributing their success to both local expertise and an international outlook. She highlighted the importance of tailoring services to not only large corporations but also small and mid-sized enterprises.
In terms of growth in the Korean market, the local partner, Woori Accounting Firm, has seen notable growth. Byung Ik Kim, CEO of Woori Accounting Firm, credited the increase in public company audit opportunities and strategic recruitment for their expansion. Since joining Baker Tilly’s network in the first half of 2019, Woori has actively engaged with member firms worldwide and was recently elected to the Asia-Pacific regional board.
Continuing with her vision, Lagerberg has set a target of reaching $60 billion in revenue by 2026 for Baker Tilly International. She stressed the importance of attracting and retaining talent to ensure quality service and mutual growth. For companies navigating uncertainty, Lagerberg advised looking to others who have overcome crises for innovative strategies, encouraging proactive action over complacency.
Advantages of AI in the Accounting Industry
– Increased Efficiency: AI can process large volumes of transactions and data at speeds unattainable by human accountants, greatly increasing efficiency and productivity.
– Accuracy: AI reduces the risk of human error in accounting processes, which enhances the accuracy of financial records and reports.
– Cost Savings: Automating routine tasks with AI can reduce labor costs, as fewer hours are needed to complete the same amount of work.
– Enhanced Analytical Insights: AI can assist in analyzing financial data to provide deeper insights for better business decision-making.
– Fraud Detection: AI systems can monitor transactions to identify unusual patterns that may indicate fraudulent activity.
Disadvantages of AI in the Accounting Industry
– Job Displacement: The automation of accounting tasks may reduce the demand for traditional accounting roles, leading to job displacement.
– High Initial Costs: Implementing AI solutions can involve significant initial costs for software and systems integration.
– Complexity and Maintenance: AI systems can be complex and may require ongoing maintenance by specialists.
– Dependence on Data: AI’s effectiveness depends on the quality and quantity of data; poor data can lead to inaccurate outcomes.
Key Challenges and Controversies
– Adoption Resistance: Some professionals may resist adopting AI due to fear of change or uncertainty about the technology’s implications.
– Data Privacy and Security: As AI systems handle sensitive financial data, there is a significant concern regarding data privacy and security breaches.
– Ethical Considerations: There are ethical concerns related to AI, such as the potential for bias in decision-making algorithms.
– Regulatory Compliance: Keeping AI in compliance with ever-changing financial regulations is a continuous challenge.
Important Questions and Answers
– How does AI impact the day-to-day work of accountants?
AI impacts the day-to-day work of accountants by automating routine tasks, allowing them to focus on more strategic activities such as advisory services and data analysis.
– What steps can companies take to integrate AI into their accounting processes effectively?
Companies should evaluate their needs, invest in quality AI systems, ensure proper training for their staff, and maintain strong data governance and cybersecurity practices.
Reliable information on the impact of AI in the accounting industry can be further explored on leading technology and business websites. Trusted links include:
– IBM
– PricewaterhouseCoopers
– Ernst & Young
– KPMG
These organizations often conduct and publish research on technological advancements in accounting, including the adoption and effects of AI.
The source of the article is from the blog guambia.com.uy