Will the Finance Profession be Relegated?

Last year I had the joy of hosting an Event at Old Trafford and was treated magnificently by the staff. Looking at that Pitch when you have nobody else there is a 'dreams are made of this' kind of experience. Yes, I know I am still coming to terms with Sundays result but I have at least started speaking to my Liverpool friends again.

Yesterday whilst I was sitting at the airport, I was scrolling through LinkedIn, as you do and I was struck by 2 stories which together create a 'Perfect Storm'. I wrote neither Article just to be clear on that. You know me well by this stage and the football is only an appetiser to the deep and thoughtful stuff, so please read on...

Article Number One focussed on the Power of AI and how it will drastically reduce / eliminate any manual repetitive activity. You know the blurb by now as we are inundated with 'Power of AI' Articles. Now I am a Strategy first guy, but AI is a vastly greater threat than RPA and this time these type of Roles are under serious threat.

This means that all Transactional roles within Finance are pretty much on career life support. Why, because in headcount terms the base of the Pyramid is where the Transactional work is performed, there are therefore more of these Roles than there are Qualified Accounting level positions.

If you don't have a Pyramid shape and can't adequately explain why then we need an off line chat. DM me as you like.

Article Number Two is where I actually sat up straight. There is according to this Article a sizeable drop off in young people entering the Accountancy Profession because they see no future in it. Now I should point out that the 'Accountancy Profession is all in Finance but not all of Finance is in the Accountancy Profession', nor have they any aspiration to be in large numbers.

Many people are happy in a 9 to 5 Transactional Finance Role and have no desire to Study Accountancy and right up until yesterday I would have said there is nothing wrong with that or is there?

Where the two Articles overlap is what concerned me the most. As I said above, AI, its capabilities and rate of progression means it will achieve its results far faster than any previous incarnation of 'Automating the Finance Function'. It will achieve it BEFORE you could qualify as an Accountant. Think about that.

If the young people considering entering the Profession are looking at the future and going, unless I start as Divisional Financial Controller (no hope), there is no future, then the Profession has a serious challenge.

Most Accountants will tell you they cut their teeth in the Processing teams. It provides in my opinion invaluable lessons in how the Business operates for those with their eyes and ears open. To others it will still provide work discipline, work ethic and exposure to the Business and its Processes. Whether you learn something or not is up to you.

However, if these Roles disappear faster than the Accountancy Production Line churns out new ACMA's than we have a serious problem.

CFO looks down the AI line and see's their Headcount & Cost Base cut. Positive on the Payroll front, Negative on the talent production line for that Business.

More advanced Companies actually see no need for Transactional Finance Roles at all and cut straight to the Technology. Big hit to the job Market, just ask any High Street recruitment Agency are they experiencing a drop in Profits? Might already have happened.

However, the people starting out on their career path are the real losers. They may face less competition as their are less entrants to the Profession but there are consequently less jobs to apply for. The Profession has to start rolling out a Production line of ready made Financial Controllers or these people will have no jobs as there are no starter level Roles left.

Then I noticed something else yesterday, it pays to scroll, one of the Accountancy Bodies has advertised a Role to entice new entrants that I doubt I have ever seen before. Maybe they are fully aware of the threat posed by AI and are making moves accordingly. I haven't noticed that anywhere else.

As I considered all of the above I figure there will be fallout, one of the Accountancy Bodies is going to be Relegated if it doesn't fully recognise the threat to their existence. If the young aren't choosing the Profession and the Tech is advancing like Genghis Khan or Liverpool on the counter, which Accountancy Body will be Relegated first is the only question I had by the time I finished scrolling.

What price a Merger...Paddy Power?

Best Regards,

Michael Ryan