At a glance
- For the best possible decision-making, accountants must combine AI tools with the uniquely human skill of critical thinking.
- Overreliance on AI risks errors, “hallucinations”, and ethical problems; human oversight is vital.
- Accountants should develop a digital mindset and practise real-time, scenario-based analysis.
Previous waves of automation took the jobs of weavers and carworkers and video-store employees. Now the AI wave of 2025 seems to cast a shadow over thinking jobs, the jobs of many people who used to pride themselves on their ability to reason and judge and decide – accountants included. To some, thinking seems in danger of becoming just another thing machines do better.
But a new paper in the Journal of Accountancy makes the case not just that accountants might survive, but that they might thrive combining AI tech with human thought.
The paper “How accountants can balance technology and critical thinking” comes from associate professor of accounting Kelly Williams and business law professor Sandra Benson, both based in the US state of Tennessee.
And the two argue critical thinking will stay “a uniquely human skill”.
Why critical thinking still overpowers AI
Critical thinking is probably best described as the kind of practical thinking where you question, analyse, interpret, weigh up and then decide what you should say or do. It demands that you understand connections between ideas, shape and evaluate arguments, spot reasoning errors, and identify the ideas that matter most. (Though today the word sometimes carries negative overtones in everyday speech, it has not always been so. Originally the term “critical” came from the Greek word kritikos, meaning “able to judge or discern”.)
Drawing on other recent research, Williams and Benson argue that employers of accountants see analysis, judgement and critical thinking generally as cornerstone skills. “Critical thinking serves as the basis for a digital mindset,” they say. It lets accountants adapt to digital disruptions, identify the needs of their organisations and clients, and work out the best systems and tools to meet those needs.
Williams and Benson argue critical thinking skills are an important set of cognitive abilities that develop over time with the right education and other help. Developing them means leaving behind “faulty beliefs about technology, such as the belief that ‘this technology will solve the problem correctly’,” they say. Rather, they argue, technology requires critical thinking skills.
Say the two academics: “Combining critical thinking and technology doesn’t just improve your work, it completely transforms how financial information is examined, understood, and shared.”
Don’t relax your critical faculties
Like many observers, the pair cite many tasks that AI can speed up: “fraud detection, data analysis, continuous monitoring, predictive analytics, automated documentation and reporting, pattern recognition, enhanced sampling techniques, automation of routine tasks, and risk assessment.”
But they also warn of the risk that accountants using these tools will give in too easily to the temptation to relax their critical faculties when they should be exercising them harder.
Williams and Benson list several elements of critical thinking tasks where accountants need to closely monitor AI output. Notably, an AI tool will commonly “hallucinate” to create flawed work, making it akin to a talented new research assistant; both need their work checked. (Opinions differ both on how bad this problem is, and on whether it may be getting worse in more recent AI models.)
“Combining critical thinking and technology doesn’t just improve your work, it completely transforms how financial information is examined, understood, and shared.”
Meanwhile, management accountants need to worry not just about hallucination but about ethics risks; AI engines can use biased data to make bad predictions and draw conclusions that look a lot like outright lies.
Four strategies to make better decisions
The two authors also list four ways in which “accountants can enhance their efficiency, accuracy, and strategic decision-making capabilities – paving the way to success in this digital age.” They argue accountants need to:
- Develop the right mindset: Accountants should view technology as a tool that supports, rather than replaces, human analysis and decision-making.
- Use technology and a critical thinking framework: Accountants should use accounting software and data analytics tools like QuickBooks, Xero, Power BI, or Tableau to automate tasks and analyse data, freeing up mental capacity for strategic problem-solving.
- Immerse yourself in real-time scenarios: Accountants should use financial applications and case studies to practice making decisions with real-time data.
- Incorporate visualisation techniques: Accountants should practice using data analysis and visualisation techniques to interpret and present financial information effectively.
The authors predict accountants who successfully combine advanced technology with sharp critical thinking skills will not only thrive but also shape the future of the profession. “Remember that growth in accounting is a continual process,” they say. “Stay curious and dedicated to learning; staying updated on technological developments and understanding how they affect accounting methods is crucial.”
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