Director Of Finance SPRING 2017 | Page 43

ANALYSIS | Artificial Intelligence Some may see this brave new world as a threat to jobs and to the accountancy profession. I see it as a real opportunity both for individuals and businesses. AI will be transformational, but in a good way. As smart machines and systems take away more and more of the bookkeeping, accountants will have more time to act in a business consultancy role for their clients. And as a result of these smart and automated systems, will have all the data available in real time to interpret and use to give our small business clients the information and advice and the recommendations they need to take the decisions that will help them grow. In this new advisory role we will be able to use our knowledge to help companies make those strategic decisions, acting more like financial directors for small businesses, rather than straight number crunchers. And, as a result of this change in our role, we will also be creating more value for the business and helping drive the wider economy. As this new landscape emerges there will be different roles and specialisms within accountancy practices. As well as the financial advisers we will see systems specialists developing, opening up new jobs and opportunities in the sector. These will be the highly knowledgeable professionals that set up the automated bookkeeping systems for businesses, ensuring they are the right platforms and are correctly integrated for their clients. All this isn’t going to happen overnight. It is a gradual long-term journey towards full automation in all areas. And as that journey takes place, standards will have to be created and agreed along the way. That will take time. But make no mistake, AI is already part of our daily lives – it exists in smartphones, digital cameras, microwave cookers, things we take for granted. This new revolution is not something we should fear; instead we need to embrace the fact that it can be used to unlock increased productivity both for ourselves and our clients – strengthening working relationships and allowing us to create real growth. Q Lee Murphy is managing director of The Accountancy Partnership Pandle.co.uk [email protected] Twitter: @Pandlecloud dofonline.co.uk Where technology and politics collide You can’t build a wall to keep the robots out, says BBC’s Mark Mardell M achines are getting smarter and smarter all the time. They are just getting better at learning, analysing, memorising. This technology is now coming out of the laboratory stage and actually doing people’s jobs. Increasingly we’ll see this happen in the world of insurance and for lawyers and in medical technology, perhaps even in journalism – anywhere there is data that people need to go through. Machines taking people’s jobs is nothing new – it’s been going on since the first Luddite smashed their loom. First of all it was manual labour it replaced, then it was semi-skilled, but now we are talking about not brawn but brain – jobs that once only humans could do. The aim is for AI to do everything that humans can do. What really fascinates me about this is not that this is coming but the moment it has come – after a year in which we saw a political revolution because we were told people felt left behind, had lost their jobs, had lost their income and the politicians were just sort of juddering and shuddering and seeing how they could cope will all that. Now we’ve got this around the corner, taking white collar, middle class jobs, what is their response? You can’t build a wall to keep the robots out. I suppose theoretically technology could eliminate all jobs. The aim is to build some sort of artificial intelligence that would be able to do anything. This raises not just political but philosophical questions. How much do we want to replace what we do now with robots doing it? I’ve seen predictions by one banker in America that by 2020, one in five of his employees – some 6,000 people – will be replaced by machine intelligence. Some people have said that by 2030 75% of the jobs in the United States that exist at the moment will go. That’s a very high and extreme figure. This technology is now coming out of the laboratory stage and actually doing people’s jobs One question is how would the market system cope with all these changes. People are talking about rather Utopian schemes, things like the Luxury Automated Communism which means that the robots do all the work and we sit back and get the profits but that depends on who owns the robots. Those sorts of things are political decisions. People talk about a universal citizen’s wage so everyone gets some sort of income but the political mood is very much against that. The technology and the politics are colliding at the moment. Q This is an edited interview Mark Mardell gave to Eddie Mair’s PM show on Radio 4. DIRECTOR OF FINANCE 43