HKUST Business School Magazine

Associate Professor Amy ZANG Department of Accounting HKUST Business School Assistant Professor Wilbur CHEN Department of Accounting HKUST Business School Revolutionizing Accounting: How AI is Shaping the Future of Auditing Impact on industry As the capabilities of artificial intelligence (AI) continues to evolve, the auditing and accounting professions are among those most significantly impacted by these technologies. 1 Many professionals in these fields have already found various applications of AI that are set to transform the auditing and accounting industries. Recent research indicates that the adoption of AI in auditing and accounting can have substantial implications. For example, studies show that audit firms that adopt AI technologies experience fewer accounting errors and a reduced risk of audit failures. 2 At the same time, the integration of AI also presents risks for the auditing and accounting professions, especially in the area of talent management. Early evidence suggests that many junior auditors may be displaced due to the advanced capabilities of AI technologies. 3 In this discussion, we will explore how AI is transforming the auditing and accounting industries, and examine strategies for professionals to navigate these changes effectively. AI is poised to revolutionize accounting and auditing as it integrates into various aspects of the profession. While offering immense benefits, the adoption of this transformative technology also presents a host of challenges. This article is co-authored by Professor Amy Zang and Professor Wilbur Chen, Co-Directors of the Center for Securities Analysis with Financial Technology at HKUST’s Department of Accounting, and Roman FAN and Madelyn GONG of the AI Institute of Deloitte. Insight Biz@HKUST 38