The Institute of Management Accountants is examining the possibilities of artificial intelligence in the accounting profession and how it will affect finance jobs now and in the future, as the organization itself recently went through a second round of staff cutbacks.
The IMA did not disclose the number of people laid off in February. The organization had an earlier round of reductions in force about two years ago.
“IMA recently implemented a strategic restructuring, which did impact headcount,” said a spokesperson. “Our focus is on positioning IMA for the future — aligned with the needs of our global members. IMA remains committed to our collective growth, and continues to invest in opportunities to advance our organization and profession.”
The IMA released a report earlier this year on the impact of AI in accounting and finance as technologies like ChatGPT gain widespread acceptance. It points out how AI can automate accounting processes such as accounts payable and receivable, monthly and quarterly closing, expense processing, procurement and supplier management. AI can also help accounting and finance professionals get insights through data analytics to identify trends and strategies.
“Generally speaking, when people talk about AI, it tends to be very theoretical and high level, and what we have found is our members —those that are working in businesses and working with day-to-day processes and procedures and people — really want to understand what’s the practical implication of this new technology on the work that they’re doing,” said IMA president and CEO Mike DePrisco.
For the report, the IMA talked to about 40 finance leaders from around the globe to understand from their perspective, the main challenges, concerns and opportunities related to leveraging AI and emerging technology into finance and accounting.
Mike DePrisco
“We did a number of focus groups with this group of leaders, and they represent every region of the world,” said DePrisco. “A number of challenges surfaced that were really categorized around four areas: the human aspect, the technology data aspect, operational aspects and ethical and governance aspects.”
One of the worries about AI is the potential for layoffs. “I do think that is probably the biggest concern that many practitioners and organization leaders have as it relates to AI, and that is job displacement,” said DePrisco. “That’s another reason why stakeholders are sometimes hesitant to adopt AI technology in the workplace because of that. Everything that we see and hear suggests that AI will augment and not replace accounting and finance professionals, but the role of what people will do is different in the future than it is today.”
The most cited concern among 38% of the respondents to the IMA survey was the human aspect of working with AI. “The human aspect really is about getting the attention and support from top leadership to invest in and implement AI is a key challenge and a key opportunity for organizations,” said DePrisco. “Those organizations that have full support from leadership — those individuals that control the funding and the allocation of resources to certain projects — those organizations that have that support and alignment have a better chance of getting AI projects implemented successfully. The lack of that support, buy-in and alignment from top leadership was cited as a concern.”
Another concern relates to the skill gaps of individual employees who are required to work with AI. “Many individuals in accounting and finance may not have had exposure to this type of technology, and the challenge therefore in implementing these projects is how do you help upskill finance and accounting professionals and practitioners?” said DePrisco. “How do you give them the tools, skills and knowledge they need to work with the technology individuals and data scientists in the organization, so they are leveraging and building these algorithms, that they’re being built on practical applications or outcomes that the business needs to achieve.”
There’s also a challenge around stakeholder buy-in, with employees accepting the idea that AI and machine learning are going to add value to the organization and not take away control or displace jobs.
“Getting that buy-in is a critical challenge and an opportunity,” said DePrisco.
There are also operational challenges with implementing AI, including cross-functional collaboration. “Implementing AI projects in an organization requires your finance and accounting business people working with your data people and your IT people to ensure that the data going into the machines represents the practical real-world scenarios that accounting and finance individuals are facing and what they need help in, so that when the machine spits out the information and data, it’s useful, reliable and suitable for the needs of the business,” said DePrisco. “Resource management is always a challenge and concern. Do we have enough resources to help ensure that this project is successful? It can’t be something that is just added to someone’s plate as another thing that they need to do and manage. AI projects are pretty complex projects. They’re time-consuming projects. Create space for your team to dedicate time to a successful implementation.”
Organizations may need to reengineer their processes to get good use out of AI. “If your processes are not good, layering in AI on top of bad processes is not going to get you a successful outcome,” said DePrisco. “The first step in implementing any AI project is to look at your processes, and to re-engineer processes in a way that’s going to be added value once you begin to implement the AI technology on top of it. Making sure that you’re rooting out bad processes, reengineering those processes, and taking the time at that point to do it is really the best practice as it relates to that.”
Choosing the right AI technology can also be a challenge. “It takes a lot of investment to bring in AI technology,” said DePrisco. “You have to look at what kind of technical depth you have. What’s needed from an integration perspective before you start making purchases, and starting to think about how you implement AI on top of that?”
Data integrity and maturity are important considerations as well. “Many organizations have data siloed throughout the organization,” said DePrisco. “It’s structured data and unstructured data. How are you bringing all that together and integrating that data and making sure that it’s reliable, clean and trustworthy, so that it can be leveraged and used to develop algorithms?”
Another challenge uncovered by the research centered around ethical and governance concerns. “These concerns are what you hear most about in mainstream media, the importance of data security,” said DePrisco. “How does AI technology impact an organization’s ability to maintain data security and data privacy? How are you governing the AI in your organization? Many organizations that implement these types of projects need to set up an AI Center of Excellence, for example, to ensure that people throughout the organization have visibility into how the AI is being used. What business outcome are you driving toward? What is the cost of implementation and maintenance? And data integrity. Is the data free of bias? Is it reflective of the business problems that you’re trying to solve?”
To help accounting and finance professionals adjust to the far-reaching changes emerging from AI, the IMA is planning to provide more training. “We need to ensure that we’re providing education, knowledge and certification training for practitioners who are moving to new roles,” said DePrisco. “These can be roles like compliance analysts, individuals that utilize AI to ensure the finance operations are adhering to laws and regulations. There are probably going to be new roles in risk assessment and management, that merge financial expertise with AI proficiency, for example, roles that identify bias in data and mitigating that bias.”
He noted that the IMA has long said that accounting and finance professionals are strategic business partners. “The more work is automated, the more opportunities individuals have to step away from some of those manual routine administrative types of tasks that accountants have done over the last 100 years and into that strategic business partner role,” said DePrisco. “That’s so critically important these days to help organizations achieve their outcomes.”
Many accountants are not sure whether it’s a good idea to trust AI systems yet with their clients’ data since programs like ChatGPT have a reputation for “hallucinating” or making up plausible-sounding information that turns out to be partly or wholly fictitious.
“You need knowledgeable accounting and finance people to question the data that comes out of the machines to ensure that it reflects the real-life scenarios that happen day to day and that reflect data that’s correct, accurate and with integrity.” said DePrisco. “That becomes an important role of accounting and finance people. That’s on the back end, but you also need that capability on the front end. And that’s why when I talk about the collaboration, you need experienced, qualified accounting and finance professionals to work with data scientists to build the algorithms that are being used to automate processes and automate a number of these financial processes that are going to create financial statements and other things that the organization is going to rely on. Making sure that the data that’s going in there is accurate, free from bias, and represents both unstructured and structured data that may exist in the organization. It’s the job of the accounting and finance professional to ensure that those algorithms are being built with the proper data. That’s how you mitigate the risk around hallucinations or information coming out that’s half baked.”
AI can be used for tasks like data analytics, to spot patterns and red flags, but it still requires the professional skepticism that an accountant can bring.
“The machines are proving to be very powerful technology that is creating new value, improving efficiency and productivity overall,” said DePrisco. “Like any new technology, there needs to be a healthy dose of skepticism and rigor applied to ensure that we’re not just relying on what a machine spits out, that we’re actually applying critical thinking, bringing our experience, judgment and curiosity to any data that becomes available through a machine. We’ve seen this throughout the years as new technology is adopted. There’s a maturity curve, and we’re still in the early stages of that maturity curve with AI. There will be a lot of learning that happens over time.”
The International Auditing and Assurance Standards Board is proposing to tailor some of its standards to align with recent additions to the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants when it comes to using the work of an external expert.
The IAASB is asking for comments via a digital response template that can be found on the IAASB website by July 24, 2025.
In December 2023, the IESBA approved an exposure draft for proposed revisions to the IESBA’s Code of Ethics related to using the work of an external expert. The proposals included three new sections to the Code of Ethics, including provisions for professional accountants in public practice; professional accountants in business and sustainability assurance practitioners. The IESBA approved the provisions on using the work of an external expert at its December 2024 meeting, establishing an ethical framework to guide accountants and sustainability assurance practitioners in evaluating whether an external expert has the necessary competence, capabilities and objectivity to use their work, as well as provisions on applying the Ethics Code’s conceptual framework when using the work of an outside expert.
President Donald Trump’s tariffs would effectively cause a tax increase for low-income families that is more than three times higher than what wealthier Americans would pay, according to an analysis from the Institute on Taxation and Economic Policy.
The report from the progressive think tank outlined the outcomes for Americans of all backgrounds if the tariffs currently in effect remain in place next year. Those making $28,600 or less would have to spend 6.2% more of their income due to higher prices, while the richest Americans with income of at least $914,900 are expected to spend 1.7% more. Middle-income families making between $55,100 and $94,100 would pay 5% more of their earnings.
Trump has imposed the steepest U.S. duties in more than a century, including a 145% tariff on many products from China, a 25% rate on most imports from Canada and Mexico, duties on some sectors such as steel and aluminum and a baseline 10% tariff on the rest of the country’s trading partners. He suspended higher, customized tariffs on most countries for 90 days.
Economists have warned that costs from tariff increases would ultimately be passed on to U.S. consumers. And while prices will rise for everyone, lower-income families are expected to lose a larger portion of their budgets because they tend to spend more of their earnings on goods, including food and other necessities, compared to wealthier individuals.
Food prices could rise by 2.6% in the short run due to tariffs, according to an estimate from the Yale Budget Lab. Among all goods impacted, consumers are expected to face the steepest price hikes for clothing at 64%, the report showed.
The Yale Budget Lab projected that the tariffs would result in a loss of $4,700 a year on average for American households.
Artificial intelligence is just getting started in the accounting world, but it is already helping firms like technology specialist Schellman do more things with fewer people, allowing the firm to scale back hiring and reduce headcount in certain areas through natural attrition.
Schellman CEO Avani Desai said there have definitely been some shifts in headcount at the Top 100 Firm, though she stressed it was nothing dramatic, as it mostly reflects natural attrition combined with being more selective with hiring. She said the firm has already made an internal decision to not reduce headcount in force, as that just indicates they didn’t hire properly the first time.
“It hasn’t been about reducing roles but evolving how we do work, so there wasn’t one specific date where we ‘started’ the reduction. It’s been more case by case. We’ve held back on refilling certain roles when we saw opportunities to streamline, especially with the use of new technologies like AI,” she said.
One area where the firm has found such opportunities has been in the testing of certain cybersecurity controls, particularly within the SOC framework. The firm examined all the controls it tests on the service side and asked which ones require human judgment or deep expertise. The answer was a lot of them. But for the ones that don’t, AI algorithms have been able to significantly lighten the load.
“[If] we don’t refill a role, it’s because the need actually has changed, or the process has improved so significantly [that] the workload is lighter or shared across the smarter system. So that’s what’s happening,” said Desai.
Outside of client services like SOC control testing and reporting, the firm has found efficiencies in administrative functions as well as certain internal operational processes. On the latter point, Desai noted that Schellman’s engineers, including the chief information officer, have been using AI to help develop code, which means they’re not relying as much on outside expertise on the internal service delivery side of things. There are still people in the development process, but their roles are changing: They’re writing less code, and doing more reviewing of code before it gets pushed into production, saving time and creating efficiencies.
“The best way for me to say this is, to us, this has been intentional. We paused hiring in a few areas where we saw overlaps, where technology was really working,” said Desai.
However, even in an age awash with AI, Schellman acknowledges there are certain jobs that need a human, at least for now. For example, the firm does assessments for the FedRAMP program, which is needed for cloud service providers to contract with certain government agencies. These assessments, even in the most stable of times, can be long and complex engagements, to say nothing of the less predictable nature of the current government. As such, it does not make as much sense to reduce human staff in this area.
“The way it is right now for us to do FedRAMP engagements, it’s a very manual process. There’s a lot of back and forth between us and a third party, the government, and we don’t see a lot of overall application or technology help… We’re in the federal space and you can imagine, [with] what’s going on right now, there’s a big changing market condition for clients and their pricing pressure,” said Desai.
As Schellman reduces staff levels in some places, it is increasing them in others. Desai said the firm is actively hiring in certain areas. In particular, it’s adding staff in technical cybersecurity (e.g., penetration testers), the aforementioned FedRAMP engagements, AI assessment (in line with recently becoming an ISO 42001 certification body) and in some client-facing roles like marketing and sales.
“So, to me, this isn’t about doing more with less … It’s about doing more of the right things with the right people,” said Desai.
While these moves have resulted in savings, she said that was never really the point, so whatever the firm has saved from staffing efficiencies it has reinvested in its tech stack to build its service line further. When asked for an example, she said the firm would like to focus more on penetration testing by building a SaaS tool for it. While Schellman has a proof of concept developed, she noted it would take a lot of money and time to deploy a full solution — both of which the firm now has more of because of its efficiency moves.
“What is the ‘why’ behind these decisions? The ‘why’ for us isn’t what I think you traditionally see, which is ‘We need to get profitability high. We need to have less people do more things.’ That’s not what it is like,” said Desai. “I want to be able to focus on quality. And the only way I think I can focus on quality is if my people are not focusing on things that don’t matter … I feel like I’m in a much better place because the smart people that I’ve hired are working on the riskiest and most complicated things.”