Artificial intelligence (AI) has had a significant impact on various industries, but concerns have been raised about its potential effects on employment. In particular, those in small business accounting worry about job security as AI tools, like large language models and image generation, are being utilized in new ways. Many workers in this field are starting to feel uneasy about the future.
To delve deeper into this topic, Jim Fitzpatrick invites LJ Suzuki, small business expert, serial entrepreneur, and CEO of CFOshare, to join him on The Small Business Show. Suzuki has extensive experience in small business accounting and has achieved success by employing data-driven solutions and quantitative research. He shares his insights on AI, highlighting the emerging trends that workers and small business owners should be aware of as this technology becomes more widely adopted.
Here are some key takeaways from their discussion:
1. Accountants and CFOs face unique risks when it comes to AI due to its ability to compile and analyze vast amounts of data. This can potentially impact their roles and job functions.
2. It’s important to recognize the limitations of AI in small business accounting. For example, platforms like ChatGPT struggle with accurate mathematical calculations and actually become less effective over time.
3. Judgement and ethics play crucial roles in financial management and small business accounting. AI, however, cannot be relied upon for these aspects, as it lacks the understanding and moral reasoning that humans possess.
4. AI tools, such as QuickBooks by Intuit, can help reduce labor and improve productivity for CFOs and accountants. These tools offer valuable automation capabilities that can streamline accounting processes.
5. Entrepreneurs should view AI as a complementary tool in small business accounting, rather than a complete replacement. While AI can provide valuable support, it should never be used as a crutch for all accounting needs. Businesses that solely rely on AI may be at a disadvantage compared to those that leverage AI alongside human expertise.
In conclusion, LJ Suzuki emphasizes that successful businesses will be able to effectively utilize AI while still performing the necessary work on top of it. On the other hand, businesses that rely solely on AI without any human involvement may not fare as well. It is essential to strike a balance and use AI as a tool, rather than a substitute for human intelligence and judgment.