Artificial Intelligence is poised to replace professional accountants who do not adapt to and integrate these technologies, according to Md Sajid Khan, Director – India at the Association of Chartered Certified Accountants (ACCA)

“Artificial Intelligence is going to replace professional accountants who do not understand and embed these technologies,” Khan told ETCFO. However, the finance veteran from ACCA stressed that AI cannot take over strategic thinking, decision-making, or emotional intelligence. Accountants don’t just crunch numbers; they can leverage technology to avoid mundane, routine tasks.

“While AI can handle routine tasks, accountants who leverage technology effectively can focus on higher-value activities beyond mere number-crunching,” he added.

Surge in Demand Amid Looming Unemployment in the Accounting Profession

“There is an acute shortage of accounting professionals in India, and we see a surge in demand. Moreover, the market size was $13.6 billion in 2020, but it is now projected to be $20 billion by 2025,” said Md Sajid Khan, Director – India, Association of Chartered Certified Accountants (ACCA).

This contrasts with the glaring unemployment and the simultaneous shortfall in professional resources.

Md Sajid Khan, citing his observations, said, “The issue is with people with the right skills; employment is a problem, and employability is a crucial concern.”

Employers need access to talent in the market. Even when firms outsource professionals, they want individuals who meet global standards, Khan added.

Addressing the skill gap, the ACCA Director for India emphasized, “Application skills and communication skills are majorly missing in the batches coming out today, largely due to the rapidly evolving landscape.”

Effective collaboration is fundamental, and diversity plays a significant role today, Khan pointed out.

Quoting a McKinsey & Co report, Khan noted, “CFOs are investing in technology today, and building the capacity of the team is another priority.”

When Will India Have Its Desi Big 4?

“Big 4, Big 5, or Big 6—what is more important is how much local talent is involved and how much local values and services are utilized. That is what really matters,” stated Md Sajid Khan.

Whether they are part of an Indian firm or a global firm with a presence in India, what matters most is how well Indian talent is leveraged, he added.

Why Are Businesses Splitting into Accounting and Consultancy?

Khan told ETCFO that the trend towards specialization is driven not only by the need for deeper business expertise but also by regulatory requirements. It is essential to maintain clear independence between different functions to meet these standards effectively.

Once known as the jack-of-all-trades, the emphasis has shifted significantly. Today, clients are increasingly selective about their consultants, seeking specific expertise rather than general knowledge. As a result, businesses are driving the trend towards specialization, with clients preferring consultants who offer targeted skills and expert advice in their particular field, Khan explained.