As we step deeper into the digital age, the accounting profession stands at a crossroads. Advancements in artificial intelligence (AI) are radically reshaping our landscape. The emergence of AI as a transformative force in the profession presents both a challenge and a significant opportunity for Professional Accountancy Organizations (PAOs). The question now arises: Could it be possible to create a completely virtual PAO? As the CEO of the Institute of Public Accountants (IPA), I believe the answer lies not just in possibility, but in exploring the opportunity presented by this concept.

The digital transformation, accelerated by the COVID-19 pandemic, has demonstrated that many professional functions can seamlessly transition into the virtual realm. Virtual meetings, online CPD (Continuing Professional Development), digital audits, taxation lodgments and process automations have become part of the norm, proving that a physical presence is no longer essential for many of the tasks traditionally performed in person. AI, with its capacity to handle vast amounts of data, automate tasks, and generate insights, is further fueling the shift toward a fully virtual environment. But how can PAOs leverage these developments and prepare for a virtual future?

The Rise of Artificial Intelligence in Accounting

Our profession has used AI in some form for many years. We should not fear AI, but embrace its capability to enhance our efficiency and drive greater value. AI has already begun to revolutionize key functions of the accounting profession, from automating routine tasks such as data entry, invoicing, and payroll to generating real-time financial insights through predictive analytics. As AI systems evolve, algorithms are handling increasingly complex tasks, including fraud detection, regulatory compliance, and strategic financial forecasting. AI's potential to enhance efficiency and accuracy means that the traditional role of accountants is shifting, making advisory and analytical skills more valuable than ever.

For PAOs, this trend presents a unique opportunity. As I discuss later in this article, by embracing AI-driven tools and virtual platforms, we can create not only a more agile, but also a more inclusive and accessible organization. The traditional brick-and-mortar PAO with its reliance on physical infrastructure could become less relevant and even superseded as the profession evolves to meet the demands of a rapidly changing world.

The Case for a Virtual Professional Accountancy Organization

A completely virtual PAO offers several compelling benefits. First, it removes geographical barriers, enabling organizations to serve a truly global membership. No longer constrained by location, PAOs can reach accountants in remote areas (subject to reliable internet connectivity), providing education, certification, and professional development without requiring them to travel. This enhances the accessibility of professional qualifications and creates a more diverse and inclusive accounting profession. The use of AI does not replace human interaction; rather AI can power a sense of global community and connectedness, providing new ways for professionals to engage.

Second, a virtual PAO can significantly reduce operational costs. Physical offices, conference spaces, and printed materials can be largely replaced with digital equivalents, saving money while promoting sustainability. This shift aligns with the growing emphasis on environmental, social, and governance (ESG) issues, which are becoming increasingly important to members, stakeholders, and regulators alike.

Moreover, a virtual PAO enables flexibility and scalability. New programs, services, and educational content can be developed and delivered faster, with the ability to adapt and update offerings in real time. AI-powered learning platforms can provide personalized CPD based on individual needs, while virtual conferences and networking events can engage members across time zones, creating more dynamic and interactive experiences.

Procyclical Relationship Between AI, Attractiveness of Our Profession and Sustainability Reporting

There is a procyclical relationship between the key areas of focus for our profession. The need to capture data in an efficient way to drive enhanced sustainability reporting, addressing generational expectations and demand for digital engagement with businesses and the evolving nature and sophistication of AI tools are positively correlated. At the heart of this correlation should be the PAO as the facilitator of change. Put simply, if we lean in and harness AI tools, meet expectations of the next generation of professionals and improve the quality of the sustainability reporting through efficient data analysis, we have an enormous potential for PAOs. So where should you start?

 

Practical Advice for PAO Leaders in the Era of AI

For leaders of PAOs, navigating the transition to a virtual organization in the age of AI requires a proactive approach. Below are five key considerations for successfully leading your organization through this transformation.

1. Prioritize Digital Literacy and AI Integration

AI is not just a tool to automate tasks; it is a strategic enabler. PAOs must invest in building digital literacy across their leadership teams and membership base. This includes understanding AI’s capabilities and limitations, training staff and members on how to use AI-driven tools, and embedding AI into the organization’s operations. Leaders should establish a clear vision for how AI will enhance the member experience and improve service delivery.

2. Focus on Member Engagement and Personalization

As PAOs go virtual, maintaining a strong connection with members becomes even more critical. Leverage AI and digital platforms to create personalized member experiences. AI-powered systems can analyze member data to identify their unique needs and tailor content, services, and communication accordingly. Virtual communities and forums can foster collaboration and networking, helping members feel connected despite the absence of physical interaction.

3. Maintain a Human-Centric Approach

While AI can automate many aspects of accounting, the human element remains crucial. PAO leaders must ensure that AI is used to complement, not replace, the professional judgement, ethics, and empathy that define the accounting profession. Emphasize the importance of professional and trans-disciplinary skills such as leadership, communication, and ethical decision-making in your educational programs. Members must be equipped to navigate the evolving landscape with both technical, professional and trans-disciplinary skills.

4. Ensure Data Security and Ethical Use of AI

With AI comes an increased reliance on data. PAO leaders must prioritize data security and ensure that AI is used ethically. Establish clear guidelines for data privacy and develop a robust governance framework that addresses the ethical implications of AI, particularly in areas such as audit and compliance. Transparency, fairness, and accountability must be the cornerstones of any AI implementation strategy.

5. Be Ready to Adapt and Innovate

The shift to a virtual PAO is not a one-time event but an ongoing process of adaptation and innovation. Leaders must foster a culture of continuous improvement and be open to exploring new technologies and approaches. Keep pace with developments in AI and other emerging technologies and be willing to experiment with new models of service delivery. Flexibility and resilience will be key to staying relevant in a rapidly changing world.

Conclusion

The possibility of a completely virtual Professional Accountancy Organization is not just a futuristic vision—it is a practical and achievable reality. The possibility is almost limitless and should assist the members of PAOs to transition their thinking to support their clients and employers by becoming the trusted adviser to their clients or employers on the ethical use of AI and data integrity. As AI continues to reshape the profession, PAO leaders must embrace the potential of digital transformation to create more agile, inclusive, and innovative organizations. By doing so, we can ensure that the accounting profession remains relevant, resilient, and ready for the future.

 

The views and opinions expressed in this article are those of the author and do not necessarily represent the views of IFAC.

Portrait of a man standing and wearing a suit with a pink tie
Andrew Conway

CEO, Institute of Public Accountants

Prof. Andrew Conway, FIPA, FFA, joined the IFAC PAO Development & Advisory Group in January 2019 after being nominated by the Institute of Public Accountants (IPA).

Andrew has been the Chief Executive Officer of IPA since May 2009, which at the time made him the youngest CEO of a public entity at the age of 28. He has been recognized for IPA’s transformation from its former name, National Institute of Accountants, into a leading and legally recognized professional accountancy body in Australia and the region. His leadership of IPA led to the organization’s recognition as the most innovative accounting body in Australia by Business Review Weekly (BRW).

Prior to working with IPA, Andrew was an Australian Government Treasury Ministry Chief of Staff and Senior Advisor and began his career in education and as an accountant for an insolvency firm. Andrew holds academic appointments as  a Professor of Accounting at the Shanghai University of Finance and Economics (honoris causa); Adjunct Professor Deakin University and Vice Chancellors' Distinguished Fellow at Deakin University. Andrew is also regularly called upon to speak on a range of topics including small business policy, wellbeing and artificial intelligence having completed a post-graduate degree in AI in 2022.