The accounting profession is undergoing a significant transformation, and technical skills alone are no longer enough to succeed. To thrive, accountants need to combine technical expertise with soft skills and artificial intelligence (AI).
Soft skills have been defined as intrinsic individual traits, attitudes and habits that prompt how efficiently people interact and navigate different contexts. AI, on the other hand, is typically software designed to mimic human tasks and skills. Technical skills are specific skills related to functions or tools required to perform tasks. AI is already making a positive impact in accounting by:
- Automating routine tasks, reducing errors and increasing efficiency
- Providing valuable insights from large financial data sets, enabling informed decision-making
- Detecting fraud and identifying areas for improvement
- Optimizing resource allocation, reducing waste and saving costs
- Helping ensure compliance with laws, policies and regulations, reducing legal risks
As AI continues to advance, it will bring significant changes to the accounting profession. Accountants who combine technical expertise with soft skills like communication, critical thinking, creativity, adaptability and collaboration will be better equipped to work alongside AI and drive success in their firms. Embracing AI and soft skills will become essential for accountants to remain competitive and provide high-quality services in the future.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
How soft skills in accounting can supplement AI
Although they are from different ends in the continuum, soft skills and AI are inseparable because they considerably complement each other. These indispensable human skills, guiding decision-making in leadership, co-relate with AI's data-driven tasks to make critical organizational decisions. In addition, soft skills complement AI by enhancing problem-solving agility in the advent of complexities. Also, soft skills, the cornerstones of creativity and innovation, support AI during process optimization by proposing creative ideas the latter cannot.
Moreover, soft skills complement AI in accounting by critically analyzing its proposals to ensure they align with acceptable human and business values such as ethical reasoning and policy compliance. In addition, soft skills are invaluable to AI implementation in accounting due to their proficiency in streamlining communication processes and sustaining stakeholder involvement.
Tangible evidence demonstrating the critical role soft skills play in complementing AI includes that of Apple, which partially owes its success to soft skills that complement its AI strategy. At a glance, the global giant has created a culture that allows the cultivation of creative ideas, team collaborations and emotional intelligence by retaining and attracting employees with exceptional soft skills.
In conclusion, soft skills in accounting are the human touch that makes AI more effective, efficient and impactful. While AI provides data-driven insights, soft skills bring the human touch, creativity and critical thinking to the table. By combining these two forces, accounting professionals can make informed decisions, drive innovation and achieve success in today's business landscape.
Challenges and opportunities for integrating soft skills in training programs
Numerous challenges can derail the integration of soft skills in training programs. For instance, the lack of formal education on soft skills due to institutions' or programs' excessive focus on academic and technical skills poses a challenge. In addition, structural barriers like the inaccessibility of essential resources needed to develop soft skills exist. Also, the general populace's lack of collective will to develop soft skills stands out as a barrier. Research by Wenjing Lyu and Jin Liu revealed that the high levels of disinterest are compounded by the fact that the masses are largely unaware of soft skills.
On the other hand, opportunities include integrating the development of such skills into formal education. Similarly, relevant stakeholders can provide viable opportunities through experiential learning. Herein, those needing training engage with people with hands-on experience in developing these human skills. Research shows this approach is preferable for individuals with difficulties in the classroom setting.
Moreover, relevant stakeholders can proactively address the barriers to access by promoting equitable resource allocation for the underserved and disadvantaged. Concerned parties can support a mindset shift throughout the population by building consensus on the importance of these skills.
Kiplinger Advisor Collective is the premier criteria-based professional organization for personal finance advisors, managers, and executives. Learn more >
Challenges of fusing soft skills and AI
When combining AI and soft skills, there are a few pitfalls to be aware of:
Over-reliance on AI. AI is sometimes used as a substitute for human judgment and decision-making, leading to a lack of critical thinking and problem-solving skills. Humans can become too dependent on AI, losing the ability to make decisions without it.
Depersonalization. Over-automating processes leads to a loss of human touch and empathy, damaging relationships and customer experiences. This can thwart emotional intelligence, essential for effective communication and collaboration.
Ethical considerations. AI raises ethical concerns, such as privacy, data security and potential misuse, which must be addressed proactively. Humans should consider the ethical implications of AI decision-making leading to potential harm.
Future industrial trends and the need to develop soft skills
We are peering into an era where adaptability and innovation are the cornerstones of individual and organizational performance. The transformation of the corporate world will command paradigm shifts from traditional notions of job specialization and employability. Presumably, there will be a rise in demand for individuals possessing hybrid skills due to the introduction of advancements like AI that will reshape industries. Similarly, digital literacy will transcend to a universal requirement; thus, tech-savvy accountants will stand out. Moreover, work readiness will prompt the creation of diverse skill sets as organizations will strive to mirror a culture of equity, inclusion and diversity.
In this landscape, accountants must invest in upskilling to remain competitive. Soft skills development is no longer a nicety but a necessity, empowering accountants to complement their technical expertise and enhance their viability in the job market. Recruiters are seeing high demand for accountants with soft skills, and developing these skills will become a critical component of an accountant's toolkit. Some of the key soft skills that accountants must develop include:
- Communication skills to effectively communicate financial information to clients and stakeholders
- Collaboration skills to work effectively with cross-functional teams
- Emotional intelligence to navigate complex client relationships
- Creativity to find innovative solutions to complex accounting problems
- Critical thinking to analyze complex financial data and make informed decisions
In conclusion, the future of accounting belongs to those who can adapt, innovate and develop the soft skills that complement their technical expertise. As the profession continues to evolve, accountants must invest in upskilling and reskilling to remain relevant in a rapidly changing landscape.
Related Content
- How Artificial Intelligence Can Help Lease Accounting
- Can AI Plan Your Retirement Better Than I Can?
- Where AI Can Save Businesses the Most Money
Disclaimer
The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.
-
Here's How Collectibles Are TaxedCollectibles Gains on collectibles can be subject to a higher rate than for most other investments.
-
Why Adobe Stock Is Down After Its Earnings BeatAdobe stock is lower Thursday despite the tech giant beating expectations for its fiscal 2024 fourth quarter. Here's what you need to know.
