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Technology
AI-exposed sectors experience productivity surge as AI jobs climb and see up to 25% wage premium: PwC 2024 Global AI Jobs Barometer [PwC]
Sectors more exposed to AI are experiencing almost five times (4.8x) higher growth in labour productivity, according to PwC’s 2024 Global AI Jobs Barometer. The report, which analysed over half a billion job ads from 15 countries, suggests that AI could allow many nations to break out of persistent low productivity growth, generating economic development, higher wages, and enhanced living standards. The report finds that for every job posting requiring AI specialist skills (like machine learning) in 2012, there are now seven job postings. PwC research also finds that growth in jobs demanding AI skills has outpaced all jobs since 2016, with postings for jobs requiring AI skills growing 3.5x faster than for all jobs. The findings also highlight economic opportunity for labour forces: jobs that require AI skills carry up to a 25% average wage premium in some markets.
What does neuromorphic computing mean for business? [PwC]
Neuromorphic computer systems aim to mimic brain functions, with the ultimate goal of matching—or even surpassing—the capabilities of the human mind. This ranges from using software to model and process information in the way that living organisms do, through trying to match the brain’s (as yet) unbeaten combination of low power and high performance with the use of radical new hardware architectures, including novel components such as memristors (transistors that behave like neurons). “With the enormous potential of AI becoming more obvious by the day, one of the major concerns for the field is that flexible intelligence as we understand it actually maps onto binary computing very poorly, and is inefficient as a result,” explains Dina Brozzetti, a managing director in PwC US’s products and technology practice. “If AI could truly learn and evolve its understanding of the world without prior programming, just like us, but at the same low energy cost—a human brain uses only around the same energy as a 20-watt light bulb, to do calculations a supercomputer would struggle to perform—then it could be the most transformative watershed in computing since the switch from vacuum tubes to transistors.”
Only 28% of CFOs say AI is critical to financial transformation: report [CFO]
Despite challenges around labor and data, 38% of CFOs and 35% of accountants are optimistic about the future of AI in their roles. Alongside this, both groups appear hesitant about the practicality of AI making significant changes, whether positive or negative, to their work processes anytime soon.
Narrowing the workplace’s AI ‘trust gap’ [The CFO]
The lack of confidence and trust between employees and employers, known as the AI Trust Gap, is not surprising given the relative immaturity of GenAI and the exponential pace at which technology is evolving. The World Economic Forum (WEF) reported this year that only 55% of employees are confident their organization will ensure AI is implemented in a responsible and trustworthy way and 42% believe their company doesn’t have a clear understanding of which systems should be fully automated and which require human intervention.
Internal audit’s role in the new European Union’s Artificial Intelligence Act [Wolters Kluwer]
The European Union’s Artificial Intelligence (AI) Act is a landmark regulation that seeks to define and harmonize comprehensive rules for the development and use of AI systems across the EU. High-risk AI systems are subject to stringent requirements under the AI Act. Internal auditors must assess that robust risk management systems are in place. These systems should include processes for identifying, assessing, and mitigating risks associated with high-risk AI systems. The internal audit data that is used by AI systems is also important, so assessing the organization’s data governance structures and processes is essential. Auditors should verify that high-quality data is used, appropriate documentation is maintained, and applicable record-keeping practices are followed.
The democratization of deepfake technology brings new perils for business [Deloitte]
This is supposed to be a podcast but if you follow the Apple Podcast and Spotify links, Deloitte hasn’t updated the podcasts in months. So you’re gonna have to read it, sorry.
Deepfake technology has advanced rapidly, and bad actors have taken note. In February, a finance worker in Hong Kong was tricked into transferring approximately US$25 million to a fraudulent account after a video conference with his CFO and other coworkers he recognized. He later discovered that everyone on the call—except him—was a deepfake. Mike Bechtel, chief futurist of Deloitte Consulting LLP, said events like this have galvanized business leaders into considering their risk. He and his team had covered the risks of synthetic media just a few months before. Clients were interested, but not overly concerned, he said. But when the news from Hong Kong hit, “In short, this really turned from ‘Yikes; that would be a bummer if it happened,’ to ‘Yeek! This is happening and it better not happen to me!’”
People
Number of professionals at the leading accounting firms in the United States in 2023 [Statista]
With almost 140,000 professionals employed in 2023, Deloitte represented the largest accounting firm in the United States in terms of staff. In the same year, Ernst & Young (EY) came second in the list of accounting firms with the most professionals, where they employed less than half of the number of that of Deloitte.
Find more statistics at Statista
EY promotes Christian Tinder to Seattle office leader [Puget Sound Business Journal]
“I’m honored to step into this leadership role with EY Seattle, a community that has been my professional home for 25 years,” Tinder said in a news release. “I look forward to developing our talented people and driving growth and innovation for clients.”
KPMG welcomes new partners [KPMG Australia]
The number of people promoted to partner at KPMG Australia is half the size of last year’s new partner cohort.
KPMG Australia CEO, Andrew Yates commented: “I’m delighted to welcome these talented individuals as partners and am particularly proud of their varied backgrounds and the depth of experience that they bring to our firm and clients.” 54% of new partners are women; 23% of the new partners also identified as culturally diverse. The Audit & Assurance division added 7 new partners, while Consulting added 21 partners across areas including Technology, Transformation, Customer & Operations and Risk Services units. Enterprise, the firms’ mid-market business, added 13 partners; Tax & Legal added 8 partners; Deal Advisory & Infrastructure appointed two partners while Business Services added one partner.
Talent
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ACCOUNTING
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News
Global IPO divergence widens as Americas and EMEIA surge while Asia-Pacific slows. [EY]
Globally, in the first half (H1) of 2024, there were 551 listings raising US$52.2b in capital, a 12% decrease in the number of IPOs and a 16% drop in proceeds raised YOY. This result is mainly due to a slowdown in Asia-Pacific IPO activity with the Americas and Europe, the Middle East, India and Africa (EMEIA) seeing robust growth in H1. These and other findings are available in the EY Global IPO Trends Q2 2024, a quarterly report analyzing global IPO data to determine market trends and outlook for the year ahead.
World Bank Group Debars Ernst & Young LLP, Kenya [World Bank Group]
The World Bank Group (WBG) today announced the 30-month debarment of Kenya-based Ernst & Young LLP (EY Kenya), which provides various services including assurance, tax, consulting, advisory and information technology. The debarment is in connection with sanctionable practices as part of the Somali Core Economic Institutions and Opportunities Program (SCORE) and the Second Public Financial Management Capacity Strengthening Project (PFM II) in Somalia. SCORE was designed to improve the enabling environment for private and financial sector development and catalyze private investment and job creation. PFM II aimed to establish and strengthen systems of domestic revenue mobilization, expenditure control, and accountability in the Federal Government of Somalia, Puntland State of Somalia, and Somaliland State. According to the facts of the case, EY Kenya failed to disclose a conflict of interest during the selection and implementation of four contracts under the SCORE and PFM II projects, and the involvement of an agent in those contracts. In addition, during the execution of one of the contracts, EY Kenya made a provision for allowances to be paid to project officials. This conduct constitutes fraudulent and corrupt practices under the WBG Consultant Guidelines.
BDO Strengthens Audit Quality Commitment with Addition of Second Independent Member on Audit Quality Advisory Council [Business Wire]
BDO USA announced the addition of John Fiebig as the second independent member to its Audit Quality Advisory Council (AQAC). Established in 2022, BDO’s AQAC provides input on the firm’s system of quality management, directly advising BDO’s CEO and board of directors on audit quality matters. Also supporting its audit quality journey, the firm released its 2023 Audit Quality Report highlighting the significant and transformative actions and investments taken since 2022 that, together with previous efforts, are driving the consistent and sustainable delivery of high-quality audits into the future. BDO has made numerous investments to improve the quality of its audits over the past two years, including, among others, the deployment of a reimagined approach to learning, an enhanced approach to audit phasing, the implementation of a new methodology enablement group, the continued nationalization and standardization of its assurance practice, as well as the continued expansion of its digital audit suite. To learn more about these initiatives, see BDO’s 2023 Audit Quality Report.
KPMG earns 2024 Microsoft Partner of the Year recognitions [KPMG]
KPMG firms have received several 2024 Microsoft Partner of the Year Award recognitions, including Winner: Switzerland Partner of the Year, Finalist: Global Advisory Partner of the Year, Finalist: AI Innovation Partner of the Year, Finalist: Nonprofit Partner of the Year.
AI, accounting degrees coming to state universities [SDPD Radio]
Two new programs in the state university system aim to help tackle high-demand career needs in South Dakota. A bachelor’s-level program for accounting is coming to South Dakota State University, and a master’s program in artificial intelligence is approved for the University of South Dakota. SDSU currently offers a minor in accounting, but Rave said the new courses will further expand opportunities for students interested in the financial sector.
Survey Says
Global Workforce Hopes & Fears Survey 2024 [PwC]
Change is everywhere – and employees are feeling it. PwC’s 2024 Global Workforce Hopes & Fears Survey – the fifth in a series dating back to 2019 – found more than half of those workers say there’s too much change at work happening at once. In Australia, 54% don’t understand why things need to change at all. At the same time, workers also report increased workloads, uncertainty about job security, and pervasive financial struggles. Before you assume the picture is bleak, there are also strong signs of optimism and engagement. Most employees say they’re ready to adapt to new ways of working. Many are eager to upskill and see potential to use generative AI (GenAI) to increase their efficiency. More than half agree recent changes they’ve experienced make them feel optimistic about their company’s future. These mixed signals, based on a survey of more than 56,000 workers in 50 countries and territories, including 1,500 from Australia, suggest a workforce caught between today and tomorrow. Workers are open to the future, but present-day pressures may be clouding their vision of what it could look like and how they can contribute.