Why does it refuse to answer my questions, lie, or respond with nonsensical, unrelated stuff? I used to get similar responses from my kids when they were three years old—at least I was compensated with some nice cuddles. No such compensation from the latest AI algorithm.

Recording of meetings, a classic AI app, was all working fine until the AI-generated minutes identified someone in the meeting who was never there. Was I asleep when this person arrived? Was the AI conducting a seance? Why did the action list give me an activity only a Mensa member can complete? Is it trying to humiliate me?

I was getting stressed out so I thought that listening to some music would help. I asked my AI friend to list the top 50 hits from 1985 and then wasted considerable time searching for tracks the AI listed that don’t actually exist. My AI friend told me that she relies on her internal knowledge and it’s not her fault. It’s my fault for asking the question in the first place – sounds like a toddler to me. Are they using toddlers to train these models?

I tried getting serious and asked my AI to summarise an article. I mean, that’s not too much to ask, right? Apparently, it is. What I received was something between a cryptic fortune cookie message and a random assortment of buzzwords. I half-expected it to end with, “Have a nice day!” I couldn’t help but think—this thing is supposed to be my assistant, not some corporate motivational poster generator. Are we training AI on fortune cookie texts now?

Then there’s the multitasking. My toddler used to “help” me fold laundry by scattering socks around the house, and now, my AI insists on “helping” with emails. I asked it to draft a quick note for a colleague, and somehow, it managed to turn “Let’s meet next week” into a Shakespearean monologue that referenced “forthcoming opportunities” and “synergies.” Who talks like this? Not me, and definitely not the colleague who’s probably wondering if I’ve hired a Victorian-era butler as my assistant.

At least toddlers have the excuse of learning language. AI is supposedly trained on millions of conversations, yet somehow, when I asked it to write a straightforward grocery list, it decided that quinoa, kale, and elderberry syrup were the essentials I clearly needed. I don’t even know what elderberry syrup is, and now I have to google it because my AI has apparently decided I need a health-conscious rebranding.

And just like a toddler who randomly shouts “elephant!” during a serious conversation, my AI sometimes drops completely unrelated facts in the middle of important tasks. “Please summarise this report,” I said. And instead of focusing on the key points, it decided to inform me that the weather in Helsinki was going to be sunny that week. Great, but how does that help me meet my deadline?

I’ve come to realise that using AI is like dealing with a very talented, highly imaginative toddler who occasionally nails it but mostly leaves you cleaning up after its creative mess. It’ll make your life better, sure, but only once it learns to stop telling you that the moon is made of cheese halfway through your project brief.

I now live in fear of when my AI grows up and becomes a teenager.

David Smith conducts firm reviews and facilitates the development of strategic plans and business plans. Contact David at [email protected] to explore how he may be able to help your firm.

The post Why is my AI behaving like a toddler? appeared first on Smithink.

They are certainly interesting. It is that interest that has seen the fastest take-up of a technology in history although, I suspect, being free and interesting has something to do with that. It seems to me there are lots of people playing with it to determine the impact on how they may operate in the future.

In some people’s minds, they could signal the end of search engines. Having consumed 30% of the internet means they can interpret the web in a far more intelligent fashion and interact with the user to enhance the information delivered.

So at a simple level, you can interact with it, ask questions, and get it to do something. In a more sophisticated fashion, you can feed it some data and get it to analyse it.

Some accountants have gotten excited about its ability to code transactions or analyse financial results. However, we already have some pretty sophisticated tools to do these things and from what I have seen the analysis that the current version of the AI bots come up with are pretty basic. However, it will only improve as more and more sophisticated models with bigger datasets are rolled out.

It might be in advisory where it will initially deliver some advantages. Posing questions about a particular issue (such as a tax issue) could be interesting. In a way, it provides another set of eyes looking at a problem. At no cost, you might find some ideas that may enable you to improve the advice that you would give a client.

Would I rely upon it? No. You need to treat what is served up to you the same as you would treat research delivered to you by a junior staff member. It may contain some helpful elements but it is likely to contain errors.

We are already seeing the IT providers starting to add AI functionality to their applications. This is perhaps where we will see some substantial efficiency gains delivered. Automating responses to client queries might be one example. Automating basic tasks inside the firm is another.

Another area of some substantial gains might be in auditing – looking for anomalies in transactions for example or perhaps assessing risk.

At the simplest level, it may help with the written word. Writing blogs for example. Below is a blog that ChatGPT wrote for me from the question “Sophisticated ideas to run an accounting firm”. It’s interesting but the ideas aren’t that sophisticated in my opinion, but they’re also not dumb.

Everyone should at least fire it up and have a play. Try different things. There will be uses found that no one has even thought of yet.

Think of it as your personal cyborg who can help enhance your performance. I am firmly of the view that this technology will not replace accountants but it will definitely enhance them.

CHATGPT’s sophisticated ideas to run an accounting firm (unedited)

Running an accounting firm requires more than just crunching numbers and filing taxes. To truly stand out in a crowded marketplace, you need to have sophisticated ideas and strategies that set you apart from the competition. Here are some sophisticated ideas to run an accounting firm:

1. Emphasise value over price: Many accounting firms compete on price, which can be a race to the bottom. Instead, focus on the value you provide to clients. Highlight your expertise, your personalised service, and the ways you can help clients save money and grow their businesses. By emphasising value, you can attract clients who are willing to pay a premium for your services.
2. Leverage technology: Technology is transforming the accounting industry, and firms that don’t embrace it risk falling behind. Consider using cloud-based accounting software that allows clients to access their financial information from anywhere, or incorporating artificial intelligence and machine learning into your processes. By using technology to streamline your operations and provide better service, you can gain a competitive edge.
3. Offer specialised services: While many accounting firms offer a broad range of services, consider specialising in a particular niche. For example, you could focus on serving a specific industry, such as healthcare or real estate, or offer specialised services like forensic accounting or business valuation. By becoming an expert in a particular area, you can attract clients who are looking for specialised knowledge and expertise.
4. Develop a strong brand: Your brand is more than just a logo or a tagline – it’s the way you present your firm to the world. Invest in developing a strong brand that reflects your values, your expertise, and your unique selling proposition. Consider hiring a branding agency to help you develop a cohesive visual identity and messaging strategy.
5. Focus on client relationships: At the end of the day, accounting is a people business. Focus on building strong relationships with your clients by providing personalised service, being responsive to their needs, and going above and beyond to help them achieve their goals. By building a loyal client base, you can create a steady stream of referrals and repeat business.
6. Invest in your team: Your team is the backbone of your firm, so it’s important to invest in their professional development and wellbeing. Provide opportunities for training and education, offer competitive compensation and benefits, and create a positive work culture that fosters collaboration and innovation.

In conclusion, running an accounting firm requires more than just technical expertise – it requires a strategic approach to business. By emphasising value over price, leveraging technology, offering specialised services, developing a strong brand, focusing on client relationships, and investing in your team, you can create a successful and sustainable accounting firm that stands out in a crowded marketplace.

The latest technology will be just one of our sessions at our popular Young Guns Workshop being held on 2-3 November. Click here to find out more – more details will be confirmed soon.

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