Adapting accountants to the AI revolution: university strategies for skill enhancement, job security and competence in accounting

Abstract

Purpose

This research investigates the impact of artificial intelligence (AI) on accounting jobs and universities implementing AI-focused accounting programs and courses to meet market requirements. By drawing insights from universities implementing AI-focused programs, this research offers a roadmap for educational institutions seeking to prepare accountants for future AI-driven jobs.

Design/methodology/approach

The study utilized the PRISMA guidelines to write this systematic review by studying the five years of relevant literature available on this topic. A thematic analysis was applied to extract data from selected studies to answer the research questions.

Findings

By fostering an environment emphasizing technical knowledge, critical thinking, communication, and innovation, universities can ensure that graduates are well-equipped to thrive in the ever-evolving accounting landscape.

Originality/value

This paper highlights the urgency of adapting accounting education to meet the challenges posed by AI generated job landscape. The research added valuable knowledge on the topic for universities that seek to advance their accounting courses.

Citation

Mohamed Saad, A.M.A. (2024), "Adapting accountants to the AI revolution: university strategies for skill enhancement, job security and competence in accounting", Higher Education, Skills and Work-Based Learning, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/HESWBL-10-2023-0295

Introduction

The integration of artificial intelligence (AI) systems has led to the taking over of more repetitive and routine tasks in many industries. The accounting profession has also been affected by the role of accountants shifting to a more strategic and analytical responsibility requiring more cognitive skills than accounting skills (Hasan, 2021). A 2021 UNESCO report determined that this disruptive technology in the accounting profession has led to the need for tertiary academic institutions such as colleges and universities to re-evaluate traditional accounting curriculums and implement innovative approaches to equip students with competencies needed to thrive in an AI-driven environment (Shiohira, 2021).

According to studies, newly qualified accountants have a skill gap in areas that include creativity, critical thinking, and technology expertise (Data Cpa, 2020; Gonçalves et al., 2022; ICAEW, 2018; Das, 2021; Leitner-Hanetseder et al., 2021; McKendrick, 2023). These skills are integral among accountants in the age of AI. However, while accounting programs in tertiary institutions garner technical accounting skills, very little focus has been given to accountants building on soft skills, advisory capabilities, and technological abilities, which are vital in the success and integration of accountants in this evolving profession (Elo et al., 2023; Hasan, 2021; Leitner-Hanetseder et al., 2021). These gaps between skills taught versus demanded highlight the pressing need for reforms in accounting education.

As AI transforms the accounting landscape, universities must implement strategies such as integrating AI applications into accounting courses, emphasizing technology skills, adding communication and critical thinking development, promoting cross-disciplinary learning, and embracing experiential opportunities to equip students with the adaptability and competence needed to leverage AI systems effectively and ensure continued job security and success in the drastically changing profession. Moreover, accountants also need to be equipped with resilient critical thinking skills. This comes with the issue that AI integration in accounting sparks a future of job displacement for accountants; hence, accounting students need the skills to adapt crucially to the evolving accounting world (Das, 2021).

Thus, this research paper aims to examine the impact of AI technologies on the accounting profession, determine the essential skills accountants need to possess in the AI-driven business environment, identify the challenges faced by universities in making necessary curriculum changes, and propose strategies and recommendations for academic institutions to enhance the competence and career readiness of accounting graduates. Moreover, this research posits that integrating problem-solving activities centered on real-life scenarios involving AI-powered data analysis is integral to developing critical thinking skills among accounting students. This approach seeks to bridge the gap between human judgment and machine capabilities in improving accounting processes. Therefore, accounting curricula embracing this integrative capability will empower entry-level accountants to endure and thrive in the AI-integrated job place.

Theoretical framework

Navigating the challenge of fostering essential skills within AI-integrated accounting education necessitates drawing upon theoretical underpinning practical application. In this regard, accounting curricula’s ability to prepare students for evolving technology largely depends on acceptance and readiness toward AI. Thus, Rogers' diffusion of innovation theory (DIT) (Rogers, 1976, 1995) and Fishbein and Ajzen’s reasoned action theory (RAT) (Fishbein and Ajzen, 1975, 2011) are the best choices to discuss the subject matter since DIT discusses technological diffusion at the macro-organizational level, while the RAT explains micro individual adoption and both theories can overlap with educational institution level.

Whereas, the Reflective Judgment Model applies to developing critical thinking through a multi-dimensional process (King and Kitchener, 1994). This theory aligns with the challenges of AI-integrated accounting, where data sets are suggested. Therefore, ethical awareness and informed decision-making help improve data interpretation and improve data analytics and financial reporting. This model can help students deconstruct complex data, consider different perspectives, and evaluate the data for better financial reporting. According to Ritchhart et al. (2011), the Making Thinking Visible model is a practical tool educators can use to improve critical thinking development among students, comprising six cognitive steps: unpacking, questioning, analyzing, summarizing, connecting, and judging; this concept can improve on collaborative analysis of AI-generated financial reports. Using this framework, accounting students can learn how to disseminate these reports through actively engaging in discussions, interpreting them, and critically using AI accounting software to improve data analytics and financial reporting. Last, by integrating Ennis' critical thinking, educators need to evaluate the need for accounting; students must be able to assess evidence, evaluate data, and form independent judgments by integrating critical thinking in AI-generated insights (McPeck, 2016).

Integrating AI into accounting curricula

The rise of AI prompts a significant shift in integrating AI-related material into accounting curricula. Within data analysis and financial reporting in accounting, available literature highlights the significance of hands-on experiences and real-world applications. Incorporating real-life AI-powered data analysis and financial reporting projects into the accounting curriculum can improve the comprehension of AI’s use in accounting data analytics, allowing the student to enhance their soft skills, such as critical thinking, necessary for accounting students thinking beyond theoretical knowledge (Sinnewe et al., 2023). Ovaska-Few (2017) explained that accounting students working with real-world AI data analytic projects ensure they recognize the challenges of using different accounting software. Students who know how to use AI-infused accounting software and technology can discuss contextual knowledge thoughtfully with their colleagues, improving their critical thinking, among other soft skills necessary in the AI-integrated accounting world (Ovaska-Few, 2017).

Regional integration of AI

The influence AI has on education paints a diverse picture worldwide of embracing AI-integrated programs into accounting curricula. The University of Michigan has collaborated with Google to integrate specialized AI and data analytics courses into its accounting curricula in the US. The university’s Center for Academic Innovation, alongside faculty from the Ford School of Public Policy and the School of Information, designed a course titled “Data Analytics in the Public Sector with R,” focusing on using public datasets to inform decision-making in the public sector. This program enhances Google’s Career Certificate in Data Analytics, part of Google’s Grow with Google initiative. The course series covers R programming, open-source data interpretation, data visualization, and hands-on practices using real-world datasets (Corp, 2022). This collaboration exposes students to real-world applications of AI in accounting, allowing them to gain practical experience and develop critical thinking skills for the profession’s future.

While necessary, African countries have a different privilege than developed countries in integrating AI into accounting curricula. African countries face the challenge of resource constraints and limited technological infrastructure to set up a widespread curriculum integration. Universities face the challenge of needing more readily available model programs focused on AI-integrated accounting (Onyejegbu, 2023). Devising extensive curricula requires extensive research, faculty training, and resource allocation, which burden existing university accounting curricula to integrate AI into them (Al-Hattami, 2021). As part of the challenges universities face, faculty that still need to be trained for AI integration leave a gap in assessments, overlooking critical thinking, informed decision-making, and adaptability, leaving room for a flawed measurement of graduate accountants (Onyejegbu, 2023). This disconnect between assessment and industry needs further exacerbates the existing skill gap.

In Asian countries, especially China, AI-related coursework has been integrated into school curricula. Technological advancements have increased the use of AI in China, leading to the need of the population to advance in AI-powered machinery and processes. Among these, AI has transformed accounting, leading to government initiatives to implement AI coursework in accounting into existing curricula (Yang, 2019). However, while students are drilled into using AI software, they lack critical soft skills to accompany their adaptability in an AI-integrated accounting world, increasing the need for critical thinking skills, among other soft skills (Yang, 2019).

Research problem

This research tries to discover AI-driven accountant abilities, including critical thinking, communication, technological competency, creativity, and flexibility. According to the research, colleges struggle to adjust their curricula to the evolving accounting profession due to curriculum overload and technical knowledge over emphasis. Therefore, this effort tries to give answers to the following questions.

Q1.

What abilities do accountants need in the AI-driven world, and how do they vary from traditional ones?

Q2.

AI integration presents issues for institutions modifying their accounting programs to meet industry expectations?

Q3.

How are universities incorporating AI-focused accounting programs, and what can be gained from case studies?

Methodology

The paper aims to provide a focused summary of the skills that are identified by the major accounting professional bodies as necessary for future accountants. Therefore, this research employs a systematic review taking up the PRISMA framework (Page et al., 2021; Appendix). The selection of the literature includes publications from accounting professional bodies with significant influence over the standards and curriculum content of higher education programs. Also, the selected literature includes publications that provide comprehensive geographical coverage, making sure that international and local contexts are captured. Additionally, the selection of literature includes publications from the past years (e.g. published in and after 2017) present in electronic databases such as Research Gate, Google Scholar and ScienceDirect. The search strategy involved keywords related to accounting curriculum, artificial intelligence, critical thinking, soft skills, accounting, tertiary education, curriculum reform, technological proficiency, job displacement, collaborative learning, accounting education, AI integration, financial reporting, data analysis, including Boolean operators AND, OR, and NOT.

The search strategy adhered to an inclusion criterion involving fully accessible peer-reviewed studies published within the last five years, studies published in English, studies around collaborative learning on critical thinking skills in accounting education, and studies focused on AI-integrated accounting. Any studies that did not fit the inclusion criteria were excluded from the search. Data was extracted through qualitative thematic analysis, allowing for the identification of recurrent themes across selected studies and improving insights on understanding the impact of collaborative learning on technical and critical thinking skills in the context of AI-integrated accounting education. In contrast, the study’s inherent limitations derived from its methodology and design, which included considerations for site selection, research design, generalizability, and self-reported views.

The impact of AI on the accounting profession

Researchers (Data Cpa, 2020; Hasan, 2021) determined that AI integration has resulted in the takeover and consolidation of a range of tasks and routines, initially in the traditional accounting roles, such as analyzing and identifying accounting fraud, financial data analysis, invoice creation, and financial report generation. Table 1 describes the ML integration in accounting (Lokanan et al., 2019) and highlights its potential in analyzing massive accounting data within small periods while performing predictive analytics and searching for financial anomalies characterized by rapid financial report generation (Lokanan et al., 2019).

In addition, banking enterprises have integrated natural language, a form of AI that is effective in scanning financial documents, extracting critical information, and analyzing the data for financial transactions (Mah et al., 2022). Furthermore, Robotic Process Automation (RPA) has eased banking and accounting by interpreting invoices, bank statements, and receipts and compiling financial records. Reducing the time accountants need to spend on mechanical tasks seamlessly (smartUi, 2023). AI reduces accountants' time on mechanical, low-judgment tasks by automating routine, repetitive processes like data entry, bookkeeping, and report generation. This grants them more time to focus on value-adding activities like providing strategic business insights, offering advisory services, and analyzing results (Noordin et al., 2022; Spring et al., 2022). AI automation also lowers labor costs by reducing the number of entry-level accounting clerks required (Deranty and Corbin, 2022; see Table 2).

Nevertheless, while automation takes over the more mundane aspects of accounting, it also threatens to make accounting and audit positions redundant. With the automation and digitalization of routine processes, AI significantly reduces the need for roles focused on traditional data processing, bookkeeping, and essential compliance (Leitner-Hanetseder et al., 2021). Resultantly, accounting clerks and lower-level auditors stand at risk of job displacement while increasing the demand for accountants in more analytical, interpretive roles (Kiarie, 2023). This is evident through an Oxford study that predicted up to 47% of accounting jobs to be overrun and deemed redundant by integrating AI into accounting by 2033 (Standard, 2017).

Integrating AI in accounting has revolutionized accountant and auditing tasks toward more judgment-intensive and high-value responsibilities that ensure clients have strategic insights, enhanced advisory services, and better financial decisions (Noordin et al., 2022; Spring et al., 2022). To ensure that accountants keep up with this transformative world, there is a need to upscale accounting student competencies around communication skills, critical thinking, creativity, advanced technological abilities, and strategic mindsets.

Skills required in the AI-driven accounting landscape

The recurrence of AI in accounting has surmounted overrunning routine tasks, shifting the role of accountants into more strategic, analytical, and advisory roles. However, for appropriate transitioning into these roles, accountants need skillsets (Table 3) that help them navigate the AI-driven environment while remaining relevant in accounting firms.

One such skill that accountants need is critical thinking and analysis. According to (Perifanis and Kitsios, 2023), accountants need to engage in more interpretation of data, recommended strategies, and situational analysis. The author also explains that accountants with strong analytical skills, judgment, and evaluation skills help input the human touch toward identifying trends in financial data. Identification of these trends helps in spotting upcoming competitors and forecasting performance. In the end, such accountants will work hand in hand with AI, automating pattern recognition toward detecting employee performance, anticipating career paths, and uncovering patterns of compensation and inequalities.

Moreover, accountants must incorporate communication skills toward clearly explaining insights from AI-generated reports to clients and collaborate across teams (MonIka Mahto et al., 2022). Communication skills help in translating complex data into actionable business advice for clients. In addition, through persuasive communication, accountants collaborate with other teams by interpreting proper data from AI-generated financial reports.

As AI is a technological innovation, part of the skills that accountants need is technological skills. These skills are essential to help accountants have proficiency in working with various data analytics and accounting software, AI systems, and necessary accounting tools (Johnson, 2023). While AI has proved accurate in most analytical sectors, accountants need technological skills to interpret financial data better while working around data analytics.

Moreover, accountants must find new problems and identify opportunities to provide value-added services, facilitating creativity, ingenuity, and innovation (Zirar, 2023). Creativity and innovation are only possible with agility and adaptability among accountants. With job roles and skill requirements rapidly evolving, accountants must continuously learn and take on new responsibilities (ICAEW, 2018). Intertwined, creative notions around accounting and diversification improve accountants' adaptability toward effectively navigating and working with AI. This adaptability helps accountants hone strategic insights that promote leadership and strategy toward overseeing organizational goals and help steer executive decisions (Ojra et al., 2021).

While foundational accounting knowledge remains essential, emerging technologies mean accountants rely far less on data processing and number-crunching skills. Instead, they must be strategic thinkers, influential advisors, analytical evaluators, insightful communicators, and technologically adept professionals. Accounting education must align itself to equip students with these critical skills demanded in the era of AI.

Challenges faced by universities

Tertiary institutions face considerable challenges in adapting their curriculums and teaching approaches in the wake of a need for reforms in accounting education toward preparing students for an AI-driven working environment (Table 4). In this regard (Kwarteng and Mensah, 2022) explain the first point very carefully that most of the traditional accounting programs emphasize building students' foundational knowledge around principles like financial reporting and compliance instead of focusing on soft skills that improve graduate employability. Therefore, a lack of soft skill training reduces newly graduated accountants’ employability rates worldwide. They have to fight with AI systems that take over their job roles. Secondly, many newly graduated accountants possess technical and theoretical knowledge but need more critical thinking skills for accounting jobs (Ovaska-Few, 2017; Sinnewe et al., 2023). Therefore, completing assigned work requiring independent judgment proves difficult. Tutors within these institutions should ensure the development of such competencies. Third (Xu and Babaian, 2021) highlight the integration of an AI-inclusive curriculum in accounting graduate programs as an issue for graduate accountants to navigate. As AI continually develops, there are few model programs on which universities can base an updated AI-focused accounting curriculum (Xu and Babaian, 2021). This makes new course material restrictive and resource-intensive because of constant updates on course material. Fourth, tertiary education has crowded accounting programs. Curriculum overload leads to the introduction of new material for students to learn, putting a strain on the teachers and students without any initiatives for institution departs, shedding down existing curricula (iLibrary, 2020). Increased subjects without allotted time increase the mental strain for students to complete accounting courses, resulting in dropping out of accounting programs (iLibrary, 2020). While these barriers face tertiary institutions, strategies must be identified to overcome them.

Strategies for tertiary institutions to enhance accountants' skills

Expanding and integrating newly graduated accountants’ needs foresight into strategies to enhance accountant programs in tertiary education (Table 5). These institutions need to expand accounting information systems coursework. This endeavor would include dedicating more time to understanding and evaluating accounting and data analytics tools and software and enhancing student hands-on learning. This will go hand in hand with integrating technology into accounting coursework. In evaluating accounting tools and software, tertiary institutions must pick social computing skills that align with student preferences toward promoting a more collaborative learning experience built on knowledge and experience (Deribigbe et al., 2022).

Another viable strategy is the integration of specialized AI and analytical coursework in tertiary institutions. (Shimamoto, 2018) explained that accountants should embrace ML as early as accounting school by taking courses on AI in accounting. This helps them maneuver real-life augmented accounting, improving their inductive reasoning. Therefore, schools should invest in improving and equipping students with the necessary skills to navigate accounting professions.

Institutions should improve teaching student’s soft skills such as communication, problem-solving, critical thinking, and innovative thinking. These skills are essential for students to secure better placements in an AI-driven world, strengthening interpersonal abilities and emotional intelligence (Ovaska-Few, 2017; Jaafar, 2018). These strategies will help promote bettered internship and work placements by enhancing graduates' readiness for technologically intensive accounting roles.

Measuring the effectiveness of educational initiatives

As tertiary institutions venture into integrating AI into accounting programs, evaluating the effectiveness of strategies implemented while measuring the impact of their curriculum changes and educational strategies is necessary. One way is through conducting student surveys. Student surveys conducted before, during, and after completing a new specialized course on required skill sets will help provide feedback to the institutional faculty on the viability and success of the programs toward their continuity or disruption (Bir, 2017). These student surveys will offer honest feedback on improving course quality, detect areas that need improvement, and assist course facilitators in bettering and progressing their teaching of these new programs.

A more proactive evaluation strategy is for accounting institutions to consult with accounting advisory boards for inputs. Data Cpa (2020) states that academic institutions must keep updating their curricula because teachers can prepare graduate accountants for the workplace by teaching new emerging skills. Likewise, (Mintz, 2021) determined that consulting for emerging skills should go hand in hand with educators assessing for analytical and ethical skills among students within accounting education programs. The author also explained that assessing for these skills ensures that not only do students graduate and become morally bound and ethical accountants, but these skill assessment tests ensure moral reasoning skills go hand in hand with accountants in the future not manipulating technology to their advantage, but for the bettered good.

Introducing an AI-related curriculum will require the evaluation of technological proficiency among students. Gauging students on data analytics, accounting systems, and AI literacy through hands-on skills simulations and competency exams will improve tracking of understanding and real-life practicability in work scenarios (Ovaska-Few, 2017). In addition, job placement tracking will help ensure that graduates have well-established skill sets toward better integration of job skills and material in workplaces. By regularly monitoring skill levels across these diverse aspects, universities can identify gaps and refine programs to meet evolving demands. Assessments enable data-driven curriculum improvements for optimal student outcomes.

Case studies

Traditional accountant curricula and AI-driven accounting curricula differ significantly in terms of focus and substance. While traditional curricula emphasize technical understanding of accounting concepts and regular duties, AI-driven curricula focus on building analytical abilities, utilizing AI tools for strategic analysis, and including specialized courses on AI and new technologies. Furthermore, AI-driven courses emphasize soft skill development, adaptability to technology improvements, and a culture of lifelong learning to address the changing demands of the accounting profession in the digital era. While tertiary institutions have struggled with the proficiency of integrating AI into the accounting curriculum, some institutions serve as examples of the way forward toward improving accountants' skills by implementing AI curriculum (Table 6).

The University of Michigan has collaborated with Google to launch specialized online training programs to equip students with vital job-training skills in data analytics, especially in public policy and data science domains. The university’s Center for Academic Innovation, alongside faculty from the Ford School of Public Policy and the School of Information, designed a course titled “Data Analytics in the Public Sector with R,” focusing on using public datasets to inform decision-making in the public sector. This program enhances Google’s Career Certificate in data analytics, part of Google’s Grow with Google initiative. The course series covers R programming, open-source data interpretation, data visualization, and hands-on practices using real-world datasets. As the demand for data analytics skills surges, with over 380,000 open positions in the U.S., this partnership targets bridging the skills gap and preparing students for high-growth careers in data analytics (Corp, 2022).

Universities and colleges in Connecticut, including UConn, Sacred Heart University, and Quinnipiac University, integrated data analytics components into their accounting programs to align with the evolving role of accountants, who now need skills in data analysis. This happened in response to the shift in the accounting world because of automation and AI. This shift is transforming the role of accountants from mere number crunchers to business advisors. Hence, firms are now looking for hires who can extract meaningful insights from data generated by ML models. These colleges and universities are adapting their accounting programs to include more technology and data analytics components in response to shifting industry demands. These changes come as accounting firms increasingly seek candidates with strong data analysis skills to complement traditional accounting knowledge (Missakian, 2020). Programs such as UConn’s online graduate certificate in accounting analytics are helping students develop skills in fintech, cryptocurrencies, blockchain, and data modeling. Schools like Central Connecticut State University and Sacred Heart University have also introduced specializations or tracks in business analytics or data sciences within their accounting programs. These shifts aim to prepare students for the evolving role of accountants, which now involves analyzing and interpreting data alongside traditional financial tasks (Missakian, 2020).

Lastly, Sacred Heart University’s West Campus hosts several technologically advanced labs that facilitate hands-on learning in various fields. The AI lab features 40 computers with advanced processing capabilities, dedicated servers, object recognition equipment, and eye trackers, focusing on AI, data analytics, ML, and financial technology (University, 2023). The cybersecurity lab spans 1,300 square feet and offers 40 workstations with cybersecurity tools, allowing for simulations of cyber threats and defense strategies. The finance lab bridges financial theory and analytics with 13 Bloomberg financial terminals and real-time market information. The problem-based learning lab engages students in real-world business problems, collaborating with local businesses on projects involving marketing, analysis, product development, and more. These labs enhance students' practical skills and knowledge across multiple disciplines (University, 2023).

It’s necessary to discuss that reputable universities (like in the given examples) include AI and data analytics in their programs to address the rising need for tech-savvy accounting professionals. They use their strong research programs and strategic alliances with IT businesses to provide cutting-edge instruction and relevant, marketable skills. By attracting top-notch students and establishing these universities as leaders in cutting-edge education, offering AI-friendly courses helps graduates be ready for the automated and data-driven future of the accounting profession. On the other hand, in many institutions, the implementation of AI-friendly courses is hampered by issues such as educational financing, few resources, sluggish curriculum modifications brought on by bureaucratic red tape, a lack of knowledge on the use of AI in accounting education, and lack of government interest in higher education (Cunha et al., 2022; Lubbe, 2017).

Discussion

We know that AI-adopting corporations and public accounting companies are accounting graduates' future employers and we also know college students use accounting curricula to learn accounting, auditing, and technology. Thus, accounting curricula’s ability to prepare students for evolving technology largely determines their future accountant acceptance and readiness toward AI. The research available also highlighted the necessity of integrating AI-related coursework in accounting education to advance accounting students by offering them hands-on experiences. To meet the evolving profession’s demands, the need to diversify existing curricula by integrating AI-related coursework is needed (Tandiono, 2023).

As a result, it is appropriate for accounting educators to facilitate collaborative learning, emphasizing the need for educators to select the best tools that promote positive learning experiences and strengthen skill development among accounting students (Deribigbe et al., 2022). Since, incorporating AI tools in accountant curricula supports collaborative learning, knowledge building, and real-life connections, ultimately preparing students' minds for acceptance and readiness toward AI, which is in line with DIT and RAT theories. These findings resonate with Ennis' critical thinking, which emphasizes the importance of evaluating evidence and forming independent judgments in the context of AI-generated insights (McPeck, 2016). Moreover, collaborative learning can improve the proficiency of accounting students by reducing anxiety, promoting problem-solving skills, engaging with advanced data learning in accounting curricula, developing discussions that illuminate different perspectives, analyzing AI-integrated insights of these perspectives, and fostering independence in accounting (Nsor-Ambala, 2022). Through collaborative learning, accounting students are not just encouraged to excel in critical thinking, among other soft skills, but can fill the competent AI-integrated accounting workforce demand. These findings align with the Reflective Judgment Model, which emphasizes ethical awareness and informed decision-making to improve data interpretation, which is vital in AI-integrated accounting (King and Kitchener, 1994).

Likewise, integrating critical thinking concepts in AI-augmented systems will enable accountants accounting students to navigate AI-augmented accounting processes efficiently and effectively, strengthening ethical standards around decision-making in accounting and financial reporting. Ultimately, accounting students will learn about financial reports by actively engaging in discussions, interpreting them, and critically using AI accounting software to improve data analytics and financial reporting (Perifanis and Kitsios, 2023). These findings aligned with the Making Thinking Visible model, which encourages students to unpack, question, analyze, summarize, connect, and judge information to improve critical thinking (Ritchhart et al., 2011).

Recommendations for university accounting education

The literature study found that universities try and prioritize increasing student abilities and personal traits to improve graduate employability. However, universities have a mission that extends beyond preparing graduates for employment. Universities, as social enterprises, should aim to educate students in a way that they will be able to cope with global transformations. Therefore, from the research findings discussed in relation to university accounting teaching, universities can work on the recommended skills framework covering key areas that help students survive in AI-driven job market revolution, Figure 1.

The findings of this study underscore the critical need for accounting education to evolve in response to the demands of the AI-driven landscape. First, accounting educators should adopt collaborative problem-solving activities centered on real-world scenarios involving AI-powered data analysis. This fosters critical thinking skills, particularly in data analysis, interpretation, and ethical reasoning. Second, institutions should re-evaluate and update accounting curricula to include AI-related coursework. Diversifying coursework by exposing students to real-life scenarios with AI applications will contribute to developing adaptable critical thinking skills. Furthermore, universities should provide hands-on experiences with AI-powered tools and technologies, ensuring accounting students are familiar with practical applications of critical thinking skills in AI-integrated financial reporting and data analysis. Lastly, collaborations with industry partners can provide accounting programs insights into what is needed in the accounting world with the evolving demands of the profession, leading to partnerships established with companies ensuring educational practices align with real-world scenarios (see Table 7).

Conclusion

The accounting profession is profoundly transforming in the era of rapid technological advancement and AI integration. AI has automated routine tasks, necessitating a shift in the role of accountants toward analytical, strategic, and advisory functions. However, this transition demands a new skill set encompassing critical thinking, communication, technological proficiency, creativity, and adaptability. Universities play a pivotal role in preparing the next generation of accountants but face challenges in aligning their curricula with the evolving demands of the profession. Still, they can address these challenges by integrating AI-related coursework, emphasizing soft skills, and conducting regular assessments. By acknowledging the challenges and implementing targeted strategies, educational institutions can better equip graduates with the skills required in an AI-augmented industry.

Therefore, tertiary institutions offering accounting programs should focus on revising their curricula to incorporate real-life AI scenarios in accounting, improving the accounting students' collaborative learning while honing their critical thinking skills toward improved hands-on experience in handling and working with AI. Tertiary institutions must foster relations with accounting firms to help stay updated on technological advancements and improve student skills to adapt well in the accounting world. Moreover, emphasizing critical thinking, communication, technological proficiency, and adaptability ensures future accountants' relevance and success in this AI-driven era. In summary, the findings suggest that if universities continue to focus on work-based learning in the near future accounting profession could integrate more adept entry-level students who can provide valuable skills in accounting, such as critical thinking toward informed decision-making, rather than just technical skills that AI will soon automate.

The study suggests that relevant bodies and academia should include AI-related curricula in accounting curricula to modernize the accounting curriculum by incorporating problem-solving activities and AI-related coursework to develop AI-integrated accounting professionalism.

Figures

Figure A1

Study selection through the PRISMA framework

Table 1

Overview of AI technologies and their applications in accounting

AI technology	Application in accounting	Reference
Machine learning	Analyzing accounting data, predictive analytics, financial report generation	Lokanan et al. (2019)
Natural language	Scanning financial documents, extracting and analyzing information	Mah et al. (2022)
Robotic process automation	Interpreting invoices and bank statements, compiling financial records	smartUi (2023)

Source(s): Author’s own work

Table 2

Impact of AI on routine accounting tasks

Task	AI automation impact	Reference
Data entry	Significant reduction in manual data entry	Data Cpa (2020), Deranty and Corbin (2022), Hasan (2021), smartUi (2023)
Invoice processing	Automated invoice scanning and processing
Financial report generation	Rapid and accurate report generation
Fraud detection	Improved detection of anomalies and fraud

Source(s): Author’s own work

Table 3

Critical skills for accountants in the age of AI

Essential skill	Description	Relevance in AI-Driven accounting	Reference
Critical thinking and analysis	Analyzing complex data and making strategic decisions	Interpretation of data, situational analysis	Perifanis and Kitsios (2023)
Communication	Effectively conveying insights and collaborating	Explaining AI-generated reports, collaboration	MonIka Mahto et al. (2022)
Technological proficiency	Proficiency in AI tools, analytics, and software	Use of data analytics, AI systems, and accounting tools	Johnson (2023)
Creativity and innovation	Generating innovative solutions and ideas	Identify new opportunities, provide value-added services	Zirar (2023)
Agility and adaptability	Taking up new tasks and responsibilities	Learn continuously, take on new responsibilities	ICAEW (2018), Ojra et al. (2021)

Source(s): Author’s own work

Table 4

Significant challenges in adapting university curriculum for AI in accounting

Challenges	Implication for accounting education	Reference
Lack of soft skill training	Reduced graduate employability	Kwarteng and Mensah (2022)
Technical and theoretical focus	Graduates lack critical thinking	Ovaska-Few (2017), Sinnewe et al. (2023)
Rapid AI development	Continuous updates in course material	Xu and Babaian (2021)
Crowded accounting programs	Mental strain, dropout rates increase	iLibrary (2020)

Source(s): Author’s own work

Table 5

Strategies to enhance accountants' skills in universities

Strategy	Description	References
Expansion of accounting information systems	Incorporating data analytics and hands-on learning	Deribigbe et al. (2022)
Integration of specialized AI and analytical courses	Offering courses on AI and machine learning in accounting	Shimamoto (2018)
Development of soft skills curriculum	Incorporating communication, problem-solving, and critical thinking	Jaafar (2018), Ovaska-Few (2017)
Regular skill assessments	Evaluating technological proficiency and other vital skills

Source(s): Author’s own work

Table 6

Leading academic institutions adapting to AI trends in accounting

Institution	Initiative/Program	Main focus	References
University of Michigan	Online training with Google	Data analytics in public policy	Corp (2022)
UConn, Sacred Heart University, Quinnipiac University	Integration of data analytics components	Shifted role of accountants	Missakian (2020)
Sacred Heart University	West Campus labs	AI, data analytics, cybersecurity	University (2023)

Source(s): Author’s own work

Table 7

Recommendations for accounting education

Recommendation	Implementation approach
Adopt collaborative activities	Center on real-world scenarios, focus on AI-powered data analysis and problem-solving
Update accounting curricula	Include AI-related coursework, expose students to practical applications
Provide hands-on experiences	Ensure familiarity with AI tools and technologies and integrate critical thinking skills
Collaborate with industry partners	Establish partnerships with companies to align educational practices with real-world needs

Source(s): Author’s own work

Funding: No funding sources are reported.

Data availability: Data is available within the manuscript and will be provided at the editor’s request.

Author contributions: The author has contributed to writing, designing, compiling and editing the final manuscript.

Deceleration: I acknowledge the use of ChatGPT [https://chat.openai.com/] to edit my writing at the final stage of preparing this viewpoint. I entered the following prompts: “Improve my writing style.”

Conflict of interest: The author declares that they have no known competing interests that could have appeared to influence the work reported in this paper.

Appendix PRISMA diagram

Figure 1

A conceptual framework for skills needs to be developed in university accounting students