AI’s Impact on Tax Research and More w/ Piritta Van Rijn

Podcast

Summary

In this episode of Growing Your Firm, host David Cristello welcomes Piritta Van Rijn, the Global Head of Product and SVP for the accounting tax and practice division at Thomson Reuters. 

They delve into the exciting potential of AI and generative AI for firm owners, discussing how these technologies can free up time and enhance the expertise of existing talent. 

Piritta shares insights from a recent report on future productivity trends in the accounting and tax industries, highlighting the importance of bridging the talent gap that many firms are currently facing. Join them for an engaging conversation on the future of productivity and the evolving landscape of the profession.

This episode was originally recorded in December 2023. For the latest from Thomson Reuters on the Future of Professionals report mentioned as well as Checkpoint Edge with CoCounsel click here and here.

Guest Bio

Piritta Van Rijn stands at the forefront of innovation in the accounting and tax profession, serving as the Global Head of Product and Senior Vice President for the Accounting, Tax, and Practice Division at Thomson Reuters. With a career that spans over two decades, 

Piritta has consistently demonstrated a commitment to enhancing the capabilities of professionals in the industry through the integration of cutting-edge technology and a deep understanding of client needs.

Throughout her career, Piritta has been a catalyst for change, recognizing the transformative potential of artificial intelligence and generative AI in the accounting and tax sectors. 

Her philosophy centers on the belief that technology should not only streamline processes but also empower professionals to deliver greater value to their clients. This vision is reflected in her leadership of Thomson Reuters’ initiatives aimed at bridging the talent gap and addressing the evolving demands of the profession.

Under Piritta’s guidance, Thomson Reuters has conducted extensive research, including the “Future of Professional Study,” which surveyed thousands of professionals across various regions. This report highlighted the optimism within the industry regarding the role of AI in enhancing productivity and efficiency. 

Piritta’s ability to synthesize complex data into actionable insights has positioned her as a thought leader, inspiring firms to embrace innovation and adapt to the rapidly changing landscape.

Piritta’s achievements extend beyond her role at Thomson Reuters. She is a sought-after speaker and advisor, frequently sharing her expertise at industry conferences and events. Her insights into the future of work, particularly in the context of AI and automation, resonate with audiences eager to navigate the challenges and opportunities that lie ahead. 

Piritta’s emphasis on responsible AI development underscores her commitment to ethical practices, ensuring that technology serves as a trusted ally in the professional realm.

In addition to her professional accomplishments, Piritta is deeply passionate about fostering a culture of continuous learning and collaboration within the industry. She believes that the future of accounting and tax lies in the ability to adapt and innovate, and she actively encourages professionals to embrace change as a pathway to growth. 

Her leadership style is characterized by inclusivity and empowerment, as she seeks to elevate the voices of those around her and cultivate an environment where creativity and critical thinking thrive.

Piritta Van Rijn’s journey is a testament to her unwavering dedication to the accounting and tax profession. As she continues to drive innovation and advocate for the responsible use of technology, her influence will undoubtedly shape the future of the industry for years to come. 

Through her work, she exemplifies the ethos of a true leader—one who not only envisions a better future but also takes the necessary steps to make it a reality.

The Future of AI in Tax and Accounting: Insights from the Podcast Episode

In a recent episode of the podcast “Growing Your Firm,” host David Crostello engaged in a compelling discussion with Piritta Van Rijn, the global head of product and SVP for the accounting tax and practice division at Thomson Reuters. 

The conversation centered around the transformative potential of AI and generative AI in the tax and accounting professions, particularly in light of a report titled “Future of Professional Study” conducted by Thomson Reuters.

Key Findings from the Report

• Optimism About AI ‘s Potential: The report surveyed over 1,200 professionals in the tax and accounting industry, revealing a strong sentiment of optimism regarding the benefits of AI. A significant 59% of tax professionals expressed confidence that AI could bolster their firm’s productivity. This optimism stems from the belief that AI can free up time from manual tasks, allowing professionals to focus on delivering greater value to their clients.
• Bridging the Talent Gap : The discussion highlighted a pressing issue in the industry: the ongoing talent gap. With fewer individuals pursuing accounting degrees, firms are increasingly looking to AI to help bridge this gap. Notably, 69% of respondents anticipated that tax work would be performed by non-tax professionals in the future, indicating a shift in how tasks may be distributed within firms.
• Efficiency Gains : The potential for efficiency gains through AI was a recurring theme. The podcast referenced a report from GitHub, which indicated that software engineers using AI tools like Copilot experienced productivity increases of 30% to 50%. This raises the possibility that similar productivity boosts could be realized in the accounting sector, where professionals could see significant time savings in their workflows.

Practical Applications of AI

Piritta Van Rijn discussed specific applications of AI that are already being explored in the tax and accounting space:

• Research Assistance : AI can streamline the research process, enabling professionals to quickly access information about legislative changes and their implications. This capability is particularly crucial given the rapid pace of legislative updates and the increasing demand for timely advice from clients.’
• Client Impact Identification : The envisioned workflow involves AI automatically identifying which clients are affected by new legislation, surfacing relevant strategies, and even drafting communication for review. This would allow professionals to focus on the critical aspects of client relationships while AI handles the more routine tasks.
• Augmentation, Not Replacement : A key takeaway from the episode is the concept of AI as a co-pilot rather than a replacement for human expertise. The technology is designed to assist professionals, allowing them to maintain control over critical decisions while benefiting from the efficiency that AI provides.

Concerns and Considerations

While the potential of AI is exciting, the podcast also addressed concerns surrounding its implementation:

• Data Security and Ethics : The report indicated that 30% of professionals expressed concerns about data security and the ethical implications of AI. Ensuring the accuracy and reliability of AI-generated information is paramount, as trust is a cornerstone of client relationships in the accounting industry.
• Responsible AI Development : Thomson Reuters has established AI principles to guide the development of their tools, emphasizing the importance of data integrity and user-centric design. This commitment to responsible AI development is crucial for gaining the trust of professionals in the industry.

Conclusion

This with Piritta Van Rijn paints a promising picture of the future of AI in the tax and accounting professions. With the potential to enhance productivity, bridge talent gaps, and streamline workflows, AI is set to play a transformative role in the industry. 

However, as firms navigate this transition, addressing concerns around data security and ensuring the responsible use of AI will be essential for fostering trust and maximizing the benefits of these innovative technologies.

The importance of accuracy and data security in AI tools is paramount, as trust in the technology is essential for firms to adopt these solutions effectively and maintain strong client relationships.

Piritta also emphasizes that the integrity of data and the accuracy of information produced by AI tools are non-negotiable. This sentiment is echoed in the findings from Thomson Reuters’ “Future of Professionals” report, where 30% of professionals expressed concerns about data security and ethics, particularly regarding the accuracy of the information generated by AI.

For firms operating in the tax and accounting industry, the stakes are high. The work they do is deeply intertwined with client trust, which is built on the foundation of providing accurate and reliable services. 

If an AI tool produces incorrect information, it can jeopardize that trust and damage the firm’s reputation. As Piritta points out, if clients perceive that the information provided is inaccurate, they may hesitate to engage with the firm again, leading to a loss of business and a long-term impact on client relationships.

Moreover, the podcast highlights that the rapid pace of technological advancement in AI means that firms must be vigilant about the tools they choose to implement. 

The ability to provide a clear trail of how AI reached a particular conclusion—through digital breadcrumbs or hyperlinks to sources—can help mitigate concerns about accuracy. This transparency allows firms to verify the information and maintain accountability, further reinforcing client trust.

Ultimately, for firms to fully leverage the benefits of AI and generative AI, they must prioritize the development and deployment of tools that adhere to strict standards of accuracy and data security. 

By doing so, they can not only enhance their operational efficiency but also ensure that they are providing the highest level of service to their clients, thereby fostering strong, lasting relationships built on trust.

Timestamps

[00:02:18] Future of professional study.

[00:05:58] AI boosting productivity in accounting.

[00:08:06] AI in accounting research.

[00:12:32] AI accuracy and trust issues.

[00:14:34] Co-pilot technology in 2024.

[00:17:35] Legal industry’s AI adoption.

[00:21:14] AI in tax and accounting.