Could Technology Replace Local Law and Accounting Jobs?

Computers haven’t taken their jobs yet, but South Florida legal and accounting professionals say they need to stay on top of technological advances to survive.

Automation and artificial intelligence have the potential to cut time spent on repetitive tasks, sort through enormous volumes of data in a fraction of the time it takes a human, and free up time for higher-level consulting and person-to-person interactions.

While large firms are using this technology, most small and medium-size firms are likely years away from using AI in day-to-day work.

“Everything won’t be automated tomorrow,” said Raul Garcia, a principal at Miami-based accounting firm Kaufman Rossin. “The Big 4 companies are spending millions on this, but it hasn’t completely trickled down to smaller companies yet. Our firm is taking baby steps in that direction.”

Law and accounting are data-heavy professions requiring bookkeeping, data entry, document preparation and review, and other time-consuming tasks.

According to a 2016 study by McKinsey & Co., 22% of a lawyer’s job and 35% of a law clerk’s job could be automated.

Accounting jobs will also be impacted. Accountants, specifically bookkeepers and clerks, took the top spot in a 2015 Pricewaterhouse Coopers study of jobs at highest risk for automation in the next 20 years.

AI has three primary functions: automating tasks, analyzing data and evaluating data. That could include robotic process automation (RPA) software used for things like payroll, invoicing and tax preparation; classifying, extracting and structuring data from scanned physical and digital documents; and customer facing chatbots for basic inquiries or language translations.

West Palm Beach-based corporate law firm Gunster currently uses automated software for document analysis, said George S. LeMieux, chairman of the firm’s board of directors.

He said the firm has created a committee focused on the future practice of law that is evaluating different technology solutions to improve client experiences.

“[AI technology] is still too new, it’s expensive and many programs are only just getting to the point in development where the technology is effective,” LeMieux said.

Despite the automation trend, U.S. accounting jobs are expected to grow at a faster-than-average rate through 2026, the U.S. Bureau of Labor Statistics reports.

Steve Klein, managing partner at Miami-based accounting firm Gerson Preston, said automation will likely result in some job losses, but is not expected to wipe out accountants.

“As a hub for international business with Latin America, South Florida businesses need accountants who understand and clearly communicate complex tax laws and financial reporting guidelines,” Klein said.

Garcia, however, said practicing accountants do need to update their skill sets. Twenty-first-century accountants must understand how to use automated programs, and need to have the ability to critically evaluate the data produced.

Kaufman Rossin has made its longtime accountants aware that they will need adapt to be employable in the next decade, he added.

“It’s harder to change people than tools,” Garcia said. “Kaufman Rossin recently gave every employee a book about achieving change in companies, and told all of us we need to read it and prepare. Many of us could work until we’re 80 or 90 years old, and we need to accept and understand these tech changes to survive.”

Gunster’s LeMieux said he expects law firms will function with fewer lawyers in the next five to 10 years. There could be less demand for junior associates who take on the lion’s share of routine work like document reviews, and corporations will likely reduce their in-house legal teams. He also believes lawyers will need to have data analysis abilities or specialized experience to add value to a firm.

LeMieux isn’t worried that AI could eventually replace the work of human lawyers.

“I don’t think lawyers will ever be completely replaced by machines,” he said, “just like I don’t believe living and breathing architects or doctors will be replaced by machines.”