Introduction to Generative AI 

As technology rapidly evolves, Professional Accountancy Organizations (PAOs) worldwide face the challenge of leveraging these advancements to benefit their students, members, and internal operations. Generative Artificial Intelligence (Gen AI), a subset of artificial intelligence, offers transformative capabilities across diverse functions, from education and examination to marketing and administration. This article introduces the basics of Gen AI, explores the role of a PAO, and delves into practical use cases for integrating Gen AI into a PAO’s services and operations. 

Gen AI refers to algorithms, particularly deep learning models, capable of generating new content—text, images, code, audio, and more—based on input data. By training on large datasets, Gen AI can produce realistic and contextually accurate outputs.  

Examples of Gen AI tools include OpenAI’s GPT-4, Google Gemini and DeepSeek which generates human-like text, Midjourney, which creates images and Notebook LM that includes audio overviews, which summarize documents in a conversational, podcast-like format and Microsoft 365 Copilot that brings Gen AI to Microsoft 365 tools, enhancing productivity in tasks like summarizing discussions and drafting documents. The technology has gained attention across industries, offering new ways to improve customer service, content creation, data analysis, and more. For a PAO, Gen AI’s potential lies in its ability to automate tasks, create customized content, and deliver real-time, contextually relevant assistance to students, members, and staff. 

It should also be noted that entities can create their own large language models (LLMs) instead of relying on tools like ChatGPT mentioned above by developing a domain specific AI system tailored to their needs. This would involve choosing the right model architecture, computing infrastructure, data collection & preparation, training & fine tuning the model, user interface and deployment. 

Role of a typical PAO 

A PAO oversees the development, regulation, and support of accountancy professionals within a particular jurisdiction. Key functions include: 

  • designing accountancy education scheme/courses and related study packs
  • examinations, and certifications for students pursuing accountancy careers 
  • providing ongoing professional development, technical resources, and compliance guidance 
  • promoting adherence to global standards such as IFRS (International Financial Reporting Standards) and ISA (International Standards on Auditing) 
  • issuing practicing regulations including Anti Money Laundering provisions 
  • enforcing ethical standards 
  • performing quality reviews and ratings for audit engagements 
  • investigating misconduct and addressing disciplinary issues 
  • managing administrative, marketing, outreach and human resources functions to maintain the PAO’s operational efficiency 

In the day-to-day management of a PAO the above functions are inextricably related to each other and efficiency in one area would positively impact the others. 

Potential use cases of Gen AI for a PAO 

Gen AI can provide significant value to a PAO by enhancing education, compliance, members services, research and operational efficiency. Some key use cases are mentioned below: 

- Developing a PAO accountancy qualification and its syllabus requires deep expertise in accounting standards, professional competencies, regulatory requirements and future skills. Gen AI can significantly enhance this process by analyzing global qualifications to identify best practices, generating competency frameworks aligned with professional needs, developing subject syllabi with structured learning objectives and creating course materials, case studies and assessments.  

Using Gen AI can assist the PAOs in developing their own accountancy qualification structure and related syllabus for the subjects incorporating the learning outcomes and difficulty levels. Particularly Gen AI will be helpful in how to develop new accountancy competencies such as sustainability and technology. The understanding of the sources of information by the Gen AI and human mind review is nonetheless to be applied for a reliable use case situation. 

- Gen AI can be used within the digital study materials, setting up short questions, and explanations incorporating students’ progress and performance.  

The Institute of Chartered Accountants of Pakistan has developed its ‘Digital Study Material’ (www.icap.org.pk) comprising of material for all the levels of its chartered accountancy qualification. The Digital Study Material facilitate students to have a personalized dashboard, record their own progress, let the AI read the content for the student, capacity to build in AI generated questions and answers, etc.  The tool has the provision to include AI-powered virtual tutors to provide real-time answers to students’ questions, helping clarify concepts and guide study. 

- The members and students of a PAO require knowledge and understanding of PAOs governing legislation and directives relating to the various aspects of its operation including the education scheme, syllabus information, practicing regulations etc. A Gen AI platform incorporating such areas can be a real utility to be used in the same way as ChatGPT etc.  

The Institute of Chartered Accountants of Pakistan has launched a Gen AI platform ‘ai.icap’ where the members and students can get all the required information by giving prompts. The platform is further being extended to incorporate resources relating to the sustainability standards, assurance standards, corporate and income tax laws etc. This Gen AI platform will become a major source of knowledge and capacity building resources for students and members to equip themselves with relevant professional areas.  

- Gen AI can produce summaries or insights on technical standards, such as IFRS and ISA, for members requiring quick reference. Additionally, AI can respond to queries on complex accounting issues, offering preliminary advice that members can then verify. Gen AI can analyze members’ career paths, skills, and professional interests to recommend personalized continuing professional development (CPD) programs, ensuring relevant growth opportunities.  

- Gen AI tools can process large volumes of new content related to standards, regulations, and industry news, summarizing key points for members in digestible formats like newsletters or brief reports. Gen AI tools like the Google’s NotebookLM can be used to develop podcasts on specific subjects with its own jurisdiction focused and can be then made available to wider audience for capacity building on those subjects.  

- Gen AI can analyze transaction data to identify patterns consistent with money laundering or fraud, allowing PAOs to provide members with tools to monitor and report suspicious activities. AI tools can organize and draft investigation documents, summarizing evidence and highlighting patterns. This helps streamline the preparation of investigative reports and disciplinary notices. Gen AI can create realistic ethical scenarios based on historical cases or hypothetical situations, which can be used for training and assessment purposes, helping members understand practical applications of the code of ethics. 

- Gen AI can provide personalized feedback, explaining mistakes and suggesting improvements. It can provide initial grading in examination, reducing manual workload for examiners while maintaining human oversight for final evaluations. Use of Gen AI exam assessment though is at a nascent stage but has the potential to greatly add efficiency to the assessment process.   

- Gen AI can assist in drafting marketing materials, newsletters, blog posts, and social media content, helping the PAO maintain regular engagement with members and the public. AI-powered tools can analyze member engagement data to identify trends, helping tailor communication strategies and program offerings more effectively. AI-driven chatbots can manage routine inquiries from students and members, providing immediate responses to FAQs about enrollment, CPD requirements, and event registration. 

Approach to embracing the Gen AI 

To introduce Gen AI to a PAO, it must begin by assessing the PAO’s needs and identifying areas where Gen AI could provide immediate value. Consult with department heads across education, member services, and administration to understand specific challenges and determine which functions could benefit most from Gen AI support.  

Launch Gen AI through pilot programs in select areas, such as education (personalized learning content) or member and student services (PAO’s own IP right material). Select projects where success can be measured clearly to demonstrate the potential value of Gen AI. Since PAOs handle sensitive data, it’s essential to prioritize data privacy and security. Educate staff and members on the basics of Gen AI and its applications within the PAO. Offer training sessions on using AI tools effectively, and provide resources to help them understand AI’s potential, limitations, and ethical considerations. Track the outcomes of Gen AI implementations, gathering feedback from users to identify areas for improvement. Regularly refine Gen AI models and workflows to improve accuracy, relevance, and user satisfaction, ensuring Gen AI solutions align with evolving member and student needs and organizational goals.  

Gen AI offers PAOs an unprecedented opportunity to enhance the quality and efficiency of services. By thoughtfully integrating Gen AI into strategic areas, PAOs can better serve their students and members, streamline operations, and maintain a competitive edge in an increasingly digital profession. As Gen AI continues to evolve, PAOs that embrace this technology thoughtfully and responsibly can set new standards for innovation and impact in the accounting profession. 

(Farrukh Rehman is immediate Past President of the Institute of Chartered Accountants of Pakistan and a member of IFAC’s Professional Accountancy Organizations Development Advisory group.)  

Farrukh Rehman, FCA

President

Farrukh Rehman, FCA is a practicing Chartered Accountant. He is President of ICAP and is leading its Sustainability Working Group. He is also a member of the IFAC’s Professional Accountancy Organizations Development Advisory Group.

Mr. Rehman regularly contributes toward setting frameworks, standards and policies related to education, examination, governance, anti-money laundering, financial reporting, XBRL, sustainability reporting, auditing, quality control/audit oversight, and investigation.

He was formerly a member of the committee improving the audit regime structure in Pakistan and represented ICAP during the World Bank’s ROSC review in Pakistan. He currently leads the ICAP’s advocacy for an accrual accounting system in Pakistan to Auditor General of Pakistan. He is a technical advisor for IFAC’s Professional Accountancy Organization Development & Advisory Group.