“Are you worried?”
That was the question dropped on me shortly before afternoon tea. I was at an accounting conference, and I had struck up a conversation with the guy at the booth next to me. He was a nice bloke, and his company specialised in bookkeeping automations. As the conversation began to wind up, he had worked out we were in the “people business”.“What do you mean… worried?”
I asked.This guy clearly existed in “tech-world” — a place where everything is looked at through the lens of code and software. With confidence, he suggested that the future demand for bookkeepers would decline dramatically—after all, his software was already reducing up to 60% of the time taken on clients’ bookkeeping work.
His question was blunt. “If technology can automate so much, why do we need so many bookkeepers? And by extension, why do we need offshore accounting teams?”
This is a thought-provoking challenge which affects not only me but all of us in the accounting industry.
AI’s Big Promises: Hype vs. Reality
ChatGPT was the forerunner of “AI-to-the-masses” being the first online AI with a simple user interface. Many of us use it (among many other AI tools) heavily now.
I won’t even attempt to try and describe the potential —it’s huge. New use cases are being discovered daily. Personally, I treat it as a ‘digital assistant’, helping me obtain, organise, and analyse data (mostly written). I like to think of it like my own online C-3PO— without the annoying voice.
Over the past month alone, I’ve personally used AI to compare health insurance policies, transcribe YouTube videos, structure email campaigns, understand complex legal documents, interpret blood test results, get tech support, generate images, troubleshoot problems with home appliances, and build Excel formulas beyond my normal expertise.
The saying “knowledge builds upon knowledge” applies here. Meaning that if you have specialist skills (e.g., coding), AI provides significant enhancement —it allows the coder to speed up by delegating the ‘grinding’ aspects of the work. This frees up human brainpower, allowing more creativity, quality, and innovation.
However, if you don’t have coding skills to begin with, AI won’t magically build your new software idea. You need some initial coding knowledge to write the AI prompts to get the quality code out the other end.
The more you know, the more you can do.
AI adoption in professional services: Evolution or Revolution?
AI is undeniably powerful, and in theory, its ability to automate accounting workflows should be a game-changer. But here’s the real question:
Has AI actually delivered on its early promises?
The short answer? Not quite.
While AI has enhanced efficiency and improved accuracy in many areas, the tsunami of automation that some predicted hasn’t fully unfolded. Why?
Professional services businesses have many moving parts. The output is often high stakes —get the tax return wrong and maybe you’re now subject to audit. Apply legislation incorrectly, and it could cost a million dollars. This is why the best lawyers and accountants get paid obscene hourly rates.
AI makes mistakes. It has an error rate. While it can process huge amounts of data, until the error rate is zero, humans still need to keep their hands on the wheel.
To summarise, AI adoption in professional services —including accounting —appears to be more of an evolution. Something we can expect to influence and change our industry over the next decade.
The Automation Fallacy & Jevons’ Paradox
People who exist in “tech-world” tend to assume that automation equals job elimination. But history tells a different story. Two key economic principles shed light on what’s really happening:
1. The Automation FallacyAs a recent UNSW BusinessThink article points out, the idea that robots will replace entire professions is flawed. While some jobs become obsolete, new tasks, roles, and industries emerge in response to innovation. AI doesn’t remove the need for human expertise—it reshapes how that expertise is applied.
2. Jevons’ Paradox
Named after economist William Jevons, this principle states that as efficiency improves, overall demand for a resource increases rather than decreases. If you have time, listen to this short clip of Marc Andreeson discussing the principle. One example cited is that when coal-powered steam engines became more efficient, businesses used even more coal, not less.
In our own profession we saw the principle at work when personal computers and accounting software took over from manual ledgers in the 70’s and 80’s. Rather than kill off the industry, it just increased the speed at which transactions could be created.
The same applies to AI. If AI makes accounting faster and more efficient, firms will likely handle more transactions, service more clients, and require more staff to manage growth—not less.
The Future of Offshoring
So, where does this leave offshoring? If AI is reshaping accounting, why won’t it replace the need for offshore teams? Here’s why:
1. AI is a Tool, Not a Replacement
While AI is great at automating repetitive data-driven tasks, it lacks judgment, business context, and relationship-building skills—all of which are critical in accounting. An accountant (offshore or onshore) using AI as a tool is far more valuable than AI on its own.
2. Humans Want to Talk to Humans
AI can assist, but when it comes to important stuff like tax planning, strategy, and compliance, businesses want a human accountant they can trust. AI might generate an answer, but who takes responsibility if it's wrong? Who interprets the nuances? Who explains it to the client?
3. The Real Threat is Who is in Control – Human or AI?
Many of us can tell when someone is relying too heavily on AI. We’ve seen job applicants submit near perfect written responses on job applications. But in live conversations they struggle to demonstrate actual knowledge.
This raises a crucial question: Are you using AI, or is AI using you?
Anyone who relies on AI without developing critical thinking skills, risks becoming redundant. But those who master AI and use it as a force multiplier will be more valuable than ever.
The Future of Offshoring: AI + Human Expertise
Where does this leave us? AI isn’t making accounting (or offshoring teams) obsolete—but it is redefining the skills needed to thrive in our industry.
I strongly encourage my own team to trial and experiment with AI tools. It’s essential to stay aware if there’s some type of ‘leap forward’ in the space that can be adopted.
This is also one of the reasons we’ve partnered with Udemy as part of the Frontline Training Academy. Not only does it allow us in a position to train staff on the latest in AI, but also the other skills (e.g., communication) needed to make them successful.
The key to success in this AI-driven world is not avoiding technology but embracing it.
The takeaways
Accounting will change, but it’s not going anywhere.
Accounting firms should encourage their offshore teams to actively use AI—getting them familiar with the tools and encourage collaboration.
Communication and people skills will remain in high demand—clients need accountants who can build relationship and explain everything clearly to them.
Control over AI is critical—firms must ensure they are the ones making the decisions, rather than blindly following AI-generated outputs.
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