AI: A Game-Changer for Chartered Accountants

ICAI President Ranjeet Kumar Agarwal articulated the advantages of AI in the accounting profession, stating, "AI will provide chartered accountants with more time for critical thinking and analytics. It's a helping hand that allows them to concentrate on more complex and analytical tasks." He clarified that AI is designed to handle compliance-related tasks, thereby freeing accountants to focus on larger and more strategic areas. "AI cannot replace human intelligence; it complements it by taking over repetitive tasks," he added.

Streamlining the Audit Process with AI

One practical application of AI in the audit profession is the use of tools like Chat GPT. Agarwal explained that auditors can now input a 700-page annual report of a listed company into Chat GPT, which can then extract key insights, such as profitability and adverse comments. This innovation drastically reduces the time required for auditors to review extensive documents.

Ensuring Accountability and Skill Enhancement

Amidst increasing scrutiny of chartered accountants, Agarwal reassured that ICAI has implemented numerous checks and balances to minimize anomalies. "Our goal is to have fewer discrepancies. Continuous efforts are made to enhance the skills of our members," he stated. ICAI also takes disciplinary action against members for non-compliance, ensuring the integrity of the profession.

The Growing Demand for Chartered Accountants

Highlighting the burgeoning demand for chartered accountants, Agarwal shared that approximately 22,000 students passed the CA examination last year, with 9,000 of them participating in campus placements. The average salary offered during campus placements was around INR 12.5 lakh, with the highest domestic offer being INR 24 lakh and the highest international offer being INR 41 lakh.

Reflecting on his own journey, Agarwal recounted, "In 1999, I was offered a campus placement at Raymonds for INR 1.5 lakh per annum, which I declined. My father, a businessman, advised me to seek better opportunities, which I did."

Future Vision: DRISHTI and 'Each One Teach One' Initiative

Looking ahead, Agarwal outlined his vision for ICAI, focusing on the DRISHTI principles—Digital, Research, Integrity, Skills, Handholding, and Transparency. Among the new initiatives is 'Each One Teach One', where a chartered accountant will mentor a student, guiding them through the profession.

Contributing to National Growth and Development

ICAI is also committed to supporting the government's initiatives, including increasing the tax-to-GDP ratio and promoting green finance. "The tax-to-GDP ratio, currently less than 3%, needs to improve for India to become a developed economy by 2047. In developed countries, the ratio is around 22%," Agarwal noted.

Additionally, ICAI will provide recommendations to the government on eliminating outdated laws and enhancing the regulatory framework to protect chartered accountants' interests. The Ministry of Corporate Affairs will soon issue Standard Operating Procedures (SOPs) for investigative agencies to safeguard the profession.

Conclusion

ICAI President Ranjeet Kumar Agarwal's vision and initiatives underscore the crucial role of AI in revolutionizing the chartered accountancy profession. With a focus on leveraging technology and enhancing skills, ICAI aims to prepare chartered accountants for a future where they can focus on strategic, analytical, and value-added tasks, driving growth and development in the industry.

Source: Business Standard | Chat GPT