The challenges of the disruption of digital technology – make it an opportunity

This is the second part of my article ‘CPAs in the Public Practice‘. This part will discuss disruption of digital technology. During the academic conference, one of my topics is ‘Succeeding in disruptive times’ to introduce the innovating public practice to the younger generation of young Filipino CPA aspirants. Philippine Regulation Commission (PRC) Board of Accountancy (BoA) member Eliseo Aurellado was also there to discuss about the government sector but prior to this, he provided an insight on what to expect in the accounting profession.

After the public practice sector’s introduction, a question-and-answer portion was held. I was proud and I did not expect to hear question from an accounting student from Far Eastern University-Manila – with this changing world of robotics and artificial intelligence, is there a threat to the accounting profession?

Leaders of KPMG are prepared for this kind of questions from client – how to convert challenges into opportunities? Digital disruption continues to redefine what it takes to compete and survive in today’s fast- moving business environment. This is why KPMG launched new tools for Data and Analytics, artificial intelligence, cognitive computing and robotics process automation.

In all Data and Analytics trainings I facilitate, I always emphasize that the only thing in this world that is permanent is change. Businesses continue to grow. The economy continues to soar high. Whatever the results maybe, business transactions are growing constantly, which means to say that data is much bigger than you expect.

In a recent interview, the CEO of Daimler Benz (Mercedes Benz) said their competitors are no longer other car companies but Tesla, Google, Apple, Amazon, among others.

“Software will disrupt most traditional industries in the next 5-10 years,” he said.

“Uber is just a software tool, they don’t own any cars, and are now the biggest taxi company in the world.”

“In the US, young lawyers already don’t get jobs. Because of IBM Watson, you can get legal advice (so far for more or less basic stuff) within seconds, with 90% accuracy compared with 70% accuracy when done by humans.”

“IBM Watson already helps doctors diagnose cancer 4x more accurately than humans. Facebook has algorithms that can recognise faces far better than humans can.”

“There will be a $100 agricultural robot in the future. Farmers in third world countries can then become managers of their field instead of working all day on their fields.”

With this progress, artificial intelligence might replace a bookkeeper who posts all transactions in the ledger. Robotics might change the way businesses do the processes. One thing cannot be replaced – how human beings gather and analyze audit evidence. Technology can never do this alone. Technology will never have its own professional judgment alone.

In a world shaped by digital disruption, KPMG Data and Analytics professionals focus on helping companies drive value by making better, faster decisions. For many years, Data and Analytics professionals have been analyzing data to help clients drive value by investing in innovations, capabilities and tools.

Today, we continue to stand at the forefront of innovation in the field of data and analytics.

At the end of Data and Analytics trainings I facilitate, the message I always leave is that change is not about technology, change is about your capabilities as a CPA – anticipate, innovate, deliver.

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About the Author

Paul Michael JaramilloChief Executive Editor

PJ is a Certified Public Accountant, writer, storyteller, and an advocate for youth empowerment and environmental protection. His passion for storytelling and social impact has taken many forms—from writing thought-provoking articles on national development, featured in a Spanish newspaper and Rappler, to producing documentaries on mining and environmental issues that aired on ABS-CBN News and GMA News.

A proud Ilocano and graduate of Northwestern University, PJ earned his degree in Accountancy then passed the CPA licensure exam in 2015. That same year, he began his professional career at KPMG in the Philippines. As an external auditor, he handled a diverse portfolio of clients, including a global workspace provider (the largest audit engagement of KPMG Philippines), a global bank, a major FMCG player, and several shared service centers.

His commitment to innovation was evident early in his career. PJ and his team won the KPMG Asia-Pacific Data & Analytics Challenge and later coached the Philippine team to a top-three finish at the KPMG GlobalRunner Cup. He went on to lead KPMG Philippines' Network of Audit Innovators and Data & Analytics Champions, as well as its academic arm. He was an active contributor to the Asia-Pacific Audit Digital Transformation Workstream and a member of both the Audit Methodology Group and the Root Cause Analysis Team. Beyond technical excellence, PJ is deeply committed to learning and leadership. He was a regular training facilitator on audit methodology, professional standards, and emerging tools in data and analytics. He also served as the Firm’s System of Quality Management (SoQM) Implementation Manager and one of its Workforce of the Future Champions.

In 2019, he contributed to the Philippine Institute of Certified Public Accountants (PICPA) as a member of its Technical Working Group on Audit Methodology. His role in shaping audit quality and innovation has left a meaningful imprint on the profession.

PJ defines success by the people he uplifts. As a mentor and coach, he invests in the growth of emerging professionals and previously served as a member of the KPMG Philippines People Committee.

He leads various community-centered advocacy projects and shares inspiring stories through his vlog, PJspirations, a platform that celebrates individuals and their journeys. As a volunteer, he serves as Academic Master and Head Coach of PREMIER International Learning and Development Center, an organization devoted to providing coaching, mentoring, and training programs that help people grow personally and professionally.

Today, PJ brings his passion and expertise to the Middle East, South Asia, and Caspian regions as part of KPMG’s Professional Practice and Audit Learning & Development team. In this role, he contributes to audit methodology advancement and learning strategy across the Middle East Cluster.

He is also a certified #IAmRemarkable facilitator, leading sessions of the global Google initiative that empowers women and underrepresented groups to celebrate their achievements.

Tiktok: PJspirations
Snapchat: pgb_088
Personal Website: http://lnk.bio/pjspirations