Accounting
From novelty to necessity: How GenAI is reshaping investment accounting
Imagine a tool so integral to your daily routine that it becomes second nature in your professional life. Generative AI has done that for investment accounting. In just two short years, GenAI’s impact has reimagined how investment accountants interact with data, make decisions and drive financial strategies.
Today, nearly
In the past year, GenAI has streamlined routine tasks such as document summarization and sifting through mountains of portfolio data to create actionable reports. Beyond these applications, GenAI is tackling more complex work: from demystifying the intricacies of reconciliation work to pioneering multi-country compliance automation. With each breakthrough, we’re eager to see what GenAI can do next — solving data puzzles within middle- and back-office operations is just the beginning.
However, integrating GenAI is a gradual process, with many investment accountants still learning to maximize their return on investment from these tools. The crux of GenAI implementation lies in how it can take very complex work that has involved many teams of experts and engineers harnessing very large datasets and build a data architecture that delivers remarkable output. Thus, the key to unlocking this next level of innovation lies in building a strong data architecture foundation.
Ensuring data integrity and accuracy
Much like investment accounting itself, the quality and accuracy of the data inputs into GenAI are essential to the reliability of its outputs. As we pioneer more advanced applications of GenAI, the creation of domain-specific prompts becomes crucial. They act as guardrails, ensuring models capture the granular context of queries and deliver accurate results. Before this can happen, we must ensure our data architecture is not only resilient but entirely without defects.
To prepare for a GenAI-driven future, businesses must maintain impeccable, validated and standardized investment data. Given the heightened regulatory scrutiny they operate in, investment accountants don’t have the luxury of simply writing off minor data errors. Even the smallest hallucination or inaccuracy can escalate into significant regulatory issues, reinforcing the need for rigorous data management practices. With this in mind and to ensure a smooth GenAI deployment, organizations should focus on three key aspects:
- Establish a data governance framework. Assigning clear responsibilities and processes is crucial. A formalized structure should define roles in data oversight, specify tasks for data quality control, and ensure compliance, all contributing to a trustworthy data environment.
- Enhance data preparation. As the demands for GenAI evolve, so must our data management practices. Organizations must elevate their data preparation processes, such as collecting, formatting and organizing raw data into a structured format suitable for analysis. Automation and validation are critical for transforming data into analytics-ready information, quickly rooting out and addressing any anomalies.
- Break down data silos. Despite more organizations migrating to the cloud, the challenge of unstructured data from disparate systems remains a hurdle for technology success. Centralizing a data story into “data lakes” can boost collaboration, standardize data and streamline data operations, paving the way for a successful GenAI integration.
Address legacy technology barriers that stunt AI overhauls
Financial organizations, especially within back-office functions, are still grappling with outdated legacy technology systems. These systems, although familiar, resist large-scale AI transformations. Internal inertia, external constraints and other reasons keep organizations from breaking free from the status quo. As a result, many organizations tiptoe into AI integrations on a piecemeal basis, hindering their ability to scale and evolve.
While modernizing systems involves complexity, the payoff can be significant. A transition to agile, interconnected systems can result in enhanced operational efficiency, a culture of continuous innovation, and a seamless data flow that’s vital for GenAI’s success. It’s about trading in the old for new ways of working that are more in sync with our dynamic digital world.
A phased approach to replacing legacy systems can minimize disruption and facilitate a smoother changeover. Additionally, fostering open collaboration between everyday users and engineering teams is essential. This partnership ensures upgrades are implemented efficiently and in a way that maximizes ROI — turning the complex task of replacing legacy systems into a rewarding journey of transformation.
Enabling strategic alignment before launch
Organizational adoption of bold technologies like GenAI can often feel like embarking on an epic expedition. The journey begins with grand visions, but can run off course due to competing priorities and misalignments between teams and executive stakeholders. A stark reminder of this is the sobering statistic that
To navigate a successful transition, organizations must have a clearly defined outcome-centric roadmap before launching AI projects. This includes clearly outlining what GenAI can achieve in terms of use cases and what lies beyond its current reach. For instance, while GenAI can automate routine tasks and provide data-driven insights, it may not replace the need for human judgment and decision-making.
Such a roadmap should highlight milestones, pitfalls to avoid, deadlines and expected outcomes, bringing the team closer to realizing the project’s full potential using GenAI. Ultimately, the success of GenAI integration depends on strategic alignment and collaboration — ensuring communication lines are open so every team member, from the front line to decision-makers, is informed and vested in the mission.
Fulfilling the promise of GenAI
As we peer into the future, GenAI adoption within the accounting space is set to skyrocket this year and beyond. It’s natural for business leaders to feel the pressure to dive headfirst into AI initiatives. However, it’s crucial to discern between merely adding GenAI to the toolkit and harnessing its potential to general value-added outcomes. Despite GenAI’s transformative promise, it’s not simply a plug-and-play proposition.
Success depends on several pillars: robust data governance, the modernization of legacy systems and a strategy that aligns with the organization’s objectives. Keeping these considerations front and center, investment accounting organizations can rely on a sound foundation necessary for a thriving GenAI ecosystem. By doing so, they stand the best chance to gain ROI that not only fits, but also advances their organization’s strategic objectives in the short and long term.
The Treasury Department named a pair of Internal Revenue Service agents as special advisors to Treasury Secretary Scott Bessent and plans key roles for them in reforming the IRS after they complained of mistreatment under the Biden administration while investigating Hunter Biden’s taxes.
Gary Shapley and Joseph Ziegler, who were both special agents with the IRS’s Criminal Investigation division,
The two whistleblowers had
“As I noted in my letter to Secretary Bessent last month, if we reinstate whistleblowers who have been retaliated against, it will send a clear signal that pointing out wrongdoing is an honorable thing to do,” Grassley said in a statement Tuesday. “It will help change the culture of our bureaucracy. I’m very grateful to Secretary Bessent for supporting Gary and Joe, and I have no doubt they will be a boon to the Treasury Department in their new roles. Gary Shapley and Joe Ziegler put their entire careers on the line to stand up for the truth, and instead of being thanked, the Biden administration treated them like skunks at a picnic. Far too many whistleblowers share a similar experience of retaliation. I hope today is the first of many redemption stories for whistleblowers who’ve been mistreated. By taking a stand for whistleblowers, President Trump and his cabinet are ushering in a new era of transparency and accountability.”
Bessent hailed their promotion to positions of influence in the Trump administration. “I am pleased to welcome Gary Shapley and Joseph Ziegler to the Treasury Department, where they will help us drive much-needed cultural reform within the IRS,” Bessent said in a statement. “These veteran civil servants join us to help further the agency’s focus on collections, modernization, and customer service, so we can deliver a more effective and efficient IRS experience for hardworking American taxpayers. I appreciate Senator Grassley’s efforts in Congress to support whistleblower protections in order to improve transparency, accountability and root out the culture of retaliation.”
Shapley and Ziegler are expected to transition to senior IRS leadership after their stint at the Treasury Department, according to the
“We are enormously grateful to Secretary Bessent, Senator Grassley, and all of the members of Congress for their leadership and trust,” Shapley and Ziegler said in a joint statement. “We have been motivated by one singular mantra: do what’s right, and do it the right way. It has not been easy, but having a clear conscience is worth the effort. We appreciate the opportunity Secretary Bessent is giving us to put our experience and firsthand knowledge to good use for the American people to eliminate waste and reform the IRS.”
Turkey’s Treasury and Finance Ministry is using artificial intelligence to track down money earned by psychics and fortune tellers as part of a broader drive to combat the informal economy and boost tax revenue.
The ministry has turned its attention to the rapid growth of online services such as astrology, spiritualism, star charting, magic, meditation and numerology — many of which operate without clear regulation.
According to state-run Anadolu Agency, AI technologies have been engaged to track digital footprints across multiple platforms, including social media, online payment systems and messaging services such as WhatsApp and Telegram.
The initiative builds on Finance Minister Mehmet Simsek’s wider
Although earlier efforts to rein in government spending yielded limited results, Simsek’s operation has increasingly focused on revenue generation through measures such as taxing multinational corporations,
An investigation flagged 1,034 individuals as “high risk” and uncovered 1.8 billion liras ($50 million) in undeclared income between 2021 and 2023, Anadolu reported. In addition, 295 individuals were found to be operating without the requisite taxpayer registration.
In a statement on X, Simsek
The Public Company Accounting Oversight Board today appointed members of its two advisory groups: the Investor Advisory Group and the Standards and Emerging Issues Group.
The IAG was established by the PCAOB to provide investors’ perspectives on the Board’s agenda. The SEIAG was also established by the PCAOB to advise on existing standards, proposed standards, potential new standards and some emerging issues. Members are appointed for two-year terms.
“Advisory groups bring insightful and valuable feedback to the PCAOB to support our investor-protection mission,” PCAOB chair Erica Williams said in a statement. “We thank all IAG and SEIAG members for their willingness to serve and for sharing their valuable time and perspectives with us.”
IAG appointments
Terms expiring Dec. 31, 2026:
- Steven Grey
- Satyam Khanna
- Steven Lipiner (He was appointed to the IAG for a one-year term to replace a member who stepped aside prior to the completion of their two-year term, and his term will expire Dec. 31, 2025.)
- Jeffrey Mahoney
- Amy Copeland McGarrity
- Sandra Peters
- Nemit Shroff
- Gary G. Walsh
Continuing members
Terms expiring Dec. 31, 2025:
- James Andrus
- Mary M. Bersot
- Jonathan Grabel
- Ken Goldman
- Tracy Sophia Harris
- Paul O’Brien
- Sanford Rich
- Gina Sanchez
SEIG appointments
Terms expiring Dec. 31, 2026:
- Preeti Choudhary
- Brian Croteau
- James Freis, Jr.
- Robert Hirth, Jr.
- Steven Lipiner (He was appointed to the SEIAG for a one-year term to replace a member who stepped aside prior to the completion of their two-year term, and his term will expire Dec. 31, 2025.)
- Jeffrey Mahoney
- Jamila Abston Mayfield
- Sandra Peters
- Laura Phillips
- Stephen Rivera
- Kurt Schacht
- G. Alan Skinner
- John White
Continuing members:
Terms expiring Dec. 31, 2025:
- Christine Davine
- David Fabricant
- Colleen Theresa Honigsberg
- James Hunt
- Jennifer R. Joe
- Carole McNees
- Steven Morrison
- Dane Mott
- Christian James Peo
- Shivaram Rajgopal
- Kecia Williams Smith
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