Balancing human expertise, automation and the rise of ChatGPT

The increasing number of automation options has provided finance professionals with the ability to speed up reporting processes, not to mention the huge opportunities offered by AI. However, this is only half the story: when it comes to productivity, human expertise is still crucial, and work-based learning remains essential for professionals who want to develop their careers within finance, argues Russell Gammon, Chief Solutions Officer at Tax Systems.

We are increasingly accustomed to automation within the accountancy industry, which is doing a great job of taking the more mundane and repetitive tasks, such as data entry, and completing them quickly, accurately and without human error. But what happens to traditional skills when technology takes over? Take taxation as an example, professionals have typically amassed lots of experience and skills through data entry and analysis. How can we train junior staff to become tax specialists if automation is taking care of the fundamentals?

Enabling digital transformation

The adoption of technology, especially automation, in the tax environment is rapidly gaining momentum. HMRC, perhaps an organisation not typically known for pioneering digital innovation, is actively contributing to this trend. One significant initiative they are undertaking is the implementation of ‘Making Tax Digital’ (MTD), which forms a crucial part of the government’s strategy to revolutionise the tax system. The primary aim of MTD, among other objectives, is to simplify tax processes for individuals and businesses, enabling them to accurately manage their tax obligations and stay in control of their financial affairs.

This makes MTD the perfect driver behind investment in automation, such as RPA, and AI technologies, such as ChatGPT. Although HMRC’s push for digitisation provides a compelling legislative incentive, there are numerous additional benefits to be gained from embracing digital transformation. Beyond ensuring compliance, this process offers opportunities for improved productivity and cost reduction. In fact, the advantages are so extensive that compliance often becomes a natural outcome of the initiative rather than its primary focus. By embracing digitisation, businesses can unlock a wide array of benefits that go far beyond mere regulatory requirements.

Introducing advanced AI

ChatGPT is a perfect example of this type of technology. Arriving practically unheralded in November of last year, it has clocked up hundreds of millions of users, significantly faster than other household name technologies. It can quickly answer a wide range of queries, even though it is prone to making up facts when it doesn’t know the answer. The point is, however, that the technology can be harnessed to be used as an assistant, or “co-pilot”, that can do the vast amount of grunt work, leaving the financial professional to act as a gatekeeper and quality control.

ChatGPT, therefore, has the potential to handle a significant portion of repetitive and tedious tasks, while also identifying and flagging incidents that require human intervention. The objective is to enhance and supplement the human role rather than replace it entirely. As a result, we can avoid spending our entire day manipulating spreadsheets and instead focus on adding more value in terms of creativity, skill, and strategic thinking to other areas of our work.

Finding the right balance

The obstacle remains as to how we train and develop our own skills when the machines will be doing so much of the heavy lifting. Organisations must strike a balance between harnessing the benefits of automation and providing fulfilling career paths to retain both emerging and experienced finance talent. It is crucial for the tax industry to embrace automation while consciously avoiding the inadvertent or intentional disregard of the distinct human skill sets that form the foundation of the entire profession. By doing so, the industry can integrate automation effectively without compromising the invaluable expertise that only humans can bring to the table.

Whilst work-based learning will continue to be indispensable for professionals seeking career advancement in the finance sector, as automation technologies are implemented, learning and development strategies must adjust and transform. Newcomers to the industry must collaborate with seasoned tax experts when reviewing and verifying returns generated by automated technologies, enabling them to gain practical expertise without having to spend excessive time on data entry.

In the coming years, it is undeniable that tax professionals will need to embrace technology to analyse the vast amounts of data held by businesses. However, the interpretation of that data and the application of relevant tax rules will continue to rely on the expertise of individuals; these invaluable skills cannot be replaced by technology. The human elements of professional expertise, accuracy and judgement will always remain the most vital and valuable assets.

Therefore, accountancy firms and in-house teams need to prioritise the investment of time and resources in fostering and developing future generations of tax professionals. By doing so, they can ensure the ongoing success and effectiveness of the industry while leveraging the potential of technology to enhance their work.