AI and the CPA: What should CPAs know about GPT3?

In the epic battle between man versus machine, the chess champion Gary Kasparov threw the match because it is alleged that he thought that the AI-powered system did a well-calculated move. In reality, it was just a random move that the system threw out because it had experienced a technical glitch.

One up-and-coming AI-enabled service to watch is GPT-3 from an organization called OpenAI. OpenAI was started by Elon Musk. It’s in beta right now and in a really raw state but the capabilities that have surfaced are pretty amazing. 

One capability (as noted in the video) it has is summarizing long reads. However, there are serious flaws that need to be worked out. For example, it advised a fake patient suffering from depression to kill themselves. So it's not going to be rolled out at a hospital any time soon, but it is something definitely watch.

AI and CPAs: Competitors or Collaborators?

AI could make the profession more sustainable, as these mundane tasks could be handed to a system. MIT’s Eric Brynjolfsson describes this concept as "race with the machine". The idea is that doctors, accountants, lawyers, can work better together with technology. It’s almost like a second set of eyes or someone that can help you assess whether the professional judgement on an issue is correct.

However, this is not something that is currently on the horizon. 

What’s more realistic is understanding where the economics of automation will apply for more basic things like have a more timely close. McKinsey put out a study in August 2020 that found automating and increasing the accuracy of forecasts helped management make better decisions. One case study they highlighted was a manufacturer that was able to reduce inventories and product obsolescence by 20 to 40 percent. 

Change is coming faster than we expect

We should be aware of the concept of exponential change.  Technology, like AI, improves at an exponential rate and not a linear rate. Consequently, monitoring the space is key for CPAs and other to ensure that they see change coming and adapt accordingly. 

Author: Malik Datardina, CPA, CA, CISA. Malik works at Auvenir as a GRC Strategist that is working to transform the engagement experience for accounting firms and their clients. The opinions expressed here do not necessarily represent UWCISA, UW, Auvenir (or its affiliates), CPA Canada or anyone else