As ignoring technology is no longer an option in the workplace, various fields and businesses are leveraging digital transformation for diversity, innovation, and empowerment.
A previous post illustrates how the online registration software company Regpack was able to build a diverse and inclusive workplace with the help of technology. The company used digital tools to promote creativity and collaboration, while also embracing remote work opportunities to accommodate unique needs, especially among tech professionals of color.
Beyond tech, the field of financial accounting is also leveraging emerging technologies like artificial intelligence (AI) to automate workflows and capture more significant growth opportunities. Below, we take a brief look at how accounting firms adopt AI and automation and how this digital transformation can impact diversity, equity, and inclusion (DEI) efforts.
A brief look at AI and automation in accounting
Accounting firms of all sizes have deployed AI to maximize its productivity and efficiency benefits. Through AI solutions that simplify document reviews, extract insights from unstructured data, and generate and summarize financial reports, accountants can better allocate time and energy for higher-value and more complex advisory work.
In terms of automation, there are also dedicated accounting platforms that streamline essential accounting processes, such as billing and revenue recognition. SOFTRAX’s billing and revenue management system automates simple and complex billing, contract renewal management, and accrual accounting to minimize revenue losses and leakages. This cloud-based software solution also maintains regulatory compliance with ASC 606 and IFRS 15 for overall revenue optimization.
Although data from accounting cloud services provider Rightworks indicates that about three-quarters (73%) of accounting firm leaders have yet to adopt AI and automation, such applications are still worth mentioning. Examining the adoption of AI and automation in financial accounting ultimately helps us gain insight into the challenges and opportunities these technologies present regarding industry-wide DEI.
AI-related challenges and opportunities in accounting DEI
Although AI technologies aren’t inherently biased, researchers have raised ethical questions on how these tools can influence industry-wide fairness, trust, bias, and transparency. A systematic review in the journal AI Ethics found a lack of diverse race, ethnicity, and gender representation in the design, development, and implementation of AI systems.
If data scientists who create AI models and algorithms hold implicit biases, this can affect how diverse and inclusive data-driven decision-making is among companies and organizations that deploy said tools. For example, accounting firms may use AI-based recruitment software to streamline the hiring process and address workforce shortages, but they may not consider that the software is programmed to discriminate against accounting professionals of marginalized identities and backgrounds.
As more accounting firms automate routine tasks like document review, bookkeeping, and auditing, the obsolescence of such roles may also threaten the job security of accountants of color, who are already underrepresented.
However, employers in the accounting profession can address such challenges by embedding DEI targets and initiatives into their overall AI and automation strategy. A Harvard Business Review article guides accounting firms through the careful design, testing, and monitoring of AI systems to reduce the risk of algorithmic bias. By training AI solutions on data that captures the diversity and nuance of gender, ethnic, and socioeconomic groups, all potential use cases — be it in talent acquisition or management — can also be fair and transparent.
Meanwhile, job security concerns among underrepresented groups in the accounting profession can be managed by incorporating DEI into upskilling and training programs. If all accounting professionals are given equal opportunities to learn how to deploy AI and automation solutions, they will remain crucial to the company despite ongoing digital transformation.
Overall, the successful integration of AI and automation into financial accounting operations can only be fully realized if companies and organizations consider DEI at every step of their digital transformation strategy. Continue reading the American Diversity Report’s articles for more insightful resources on diversity across industries.
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