AI can take place of Auditors and Accountants: Union Finance Secretary

Union Finance Secretary and senior IAS officer TV Somanathan stated that Artificial Intelligence (Al) can replace the work and take the place of auditors and accountants.

He was giving the CA S. Hariharan memorial lecture. Somanathan stated that Al has specific implications for the economy and that automation for business processes can be much more powerful with AI than it was without it.

He claims that this can substantially replace the work of auditors and accountants. The finance secretary also predicted an increase in credit lending in the Indian economy.

According to TV Somanathan, “Credit to the private sector in India is approximately 55% of GDP, while in China it is above 180%.” I would not call the Chinese level healthy or desirable. This is not a desirable goal, but one could argue that India’s level is too low.”

He said, “Projects that would not otherwise begin will begin if sufficient funding is provided. However, the challenge is to increase the volume of credit without incurring bad debts, which we call NPAs. This credit expansion will increase demand for accountants.”

The Union Finance Secretary also stated that the number of income taxpayers in India will continue to rise for many years to come. He predicted that the number of income taxpayers would grow by 6-7 percent per year, increasing the demand for good accountants.