As Generative AI triggers a transformation in every element of the economy, including businesses, healthcare, and academic sectors, it is also beginning to disrupt the practice of Chartered Accountants. The Institute of Chartered Accountants of India (ICAI), which regulates professional practices and training, is leading the transformation by introducing a Small Language Model (SLM) using OpenAI’s ChatGPT. This SLM, known as ICAI GPT, is poised to significantly impact the accounting profession in India, affecting CAs, CA students and commerce institutes.
ICAI’s adoption of Generative AI through ICAI GPT is a significant development with far-reaching implications for the accounting profession in India.
Abhishek Gupta, Founder and Managing Partner at Pierag Consulting LLP, envisions AI transforming CAs into strategic financial managers, evolving well beyond traditional bookkeeping tasks. He believes that ICAI GPT is set to become a gamechanger as it can automate routine tasks like compliance checks and data analysis, allowing CAs to focus on higher-level responsibilities.
Gupta also highlights the tool’s ability to translate complex data into actionable insights, aiding in smarter client decisions. Moreover, ICAI GPT can keep professionals updated with the latest standards and best practices, enhancing the quality and effectiveness of their work.
ICAI GPT’s limitations
However, Gupta cautions that ICAI GPT is still under development and has limitations. He emphasises that the information it provides is for educational purposes and should not replace professional advice. “Since inaccuracies are occasionally possible, users must exercise caution, cross-verify information and use the tool responsibly and ethically,” he cautions.
CA students can also benefit from ICAI GPT, says Bharath Kumar R, an article assistant with the Bengaluru-based Dhariwal & Srinivas CA firm. He acknowledges the challenges faced by CA aspirants, including comprehension of complex financial concepts, a vast syllabus and rigorous examinations and says, “CA GPT has proven to be an aid for CA aspirants in improving their study methods and preparations. It helps in offering students personal study support and easy resource access.”. This tool easily provides students with “quick, correct and relevant answers, making the retrieval of information much easier,” he points out.
Hindushree BS, another article assistant, asserts that it is important to cross-check the AI-generated output with official sources to ensure accuracy and avoid misconceptions. “While CA GPT is an invaluable adjunct to studying, maintaining a critical approach and using it alongside traditional methods of study are important for developing a deep and accurate understanding of the CA material,” she feels.
Meanwhile, Narasimha Murthy KSVL, a CA, raises concerns about AI’s limitations, particularly its potential for generating misinformation. “Is AI a boon or a bane for CAs? I would say it is both. It can’t entirely replace human judgment, but it can be very useful in sifting through voluminous data and information and can cull out the relevant data,” he observes.
“The AI output is structured and it helps me in understanding and interpreting in a much quicker way. But my reliance on AI would end here,” he adds.
S Madhusudhana Rao Alampally, a CA, notes that the quality of output depends on the input provided and professionals must input precise and accurate information to obtain reliable results. A solid understanding of the subject matter is crucial for using ICAI GPT effectively to draw accurate conclusions. “It enhances decision-making processes. It enables CAs to answer basic client queries instantly without having to bother the seniors in the profession to get answers for knotty issues,” he says.
The introduction of ICAI GPT also raises questions about its impact on commerce institutes. While the provided opinions do not directly address this issue, it is conceivable that these institutes could leverage ICAI GPT to enhance their educational offerings. For instance, they could use the AI tool to develop personalised learning experiences, automate administrative tasks, and provide students with additional support.
Muppala Sreedhar, a CA, and the Chairman of Tapasya chain of commerce and management colleges, feels that AI is unavoidable. “The methodology of learning changes with time and they should be exposed to such technologies,” he adds.
He says CA GPT would enhance finance and accounting functions significantly as it helps crunch bigger sample sizes for testing the financial data, besides identifying duplication of vouchers, if any.
The tool offers numerous benefits, including increased efficiency, improved decision-making and enhanced learning experiences. However, it is crucial to use ICAI GPT responsibly, being mindful of its limitations and the importance of human oversight. With careful implementation and continuous refinement, ICAI GPT can become a valuable asset for CAs, CA students and commerce institutes, contributing to the advancement of the accounting profession in the digital age.