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 CPA, writer, storyteller, environment and youth advocate. As a writer, his articles on national development were published in a Spanish newspaper and local news network Rappler. As a storyteller and environment advocate, his documentary films on mining and environment were featured by ABS-CBN News and GMA News. He launched his career as a CPA at KPMG in the Philippines in late 2015. He started his professional journey as an external auditor of a global workspace provider (the largest audit client of KPMG in the Philippines), global bank, leading MFCG in the Philippines and a number of shared service centres. As an auditor, his team won the KPMG Asia-Pacific Data & Analytics Challenge and coached the Philippine team that placed third to the KPMG GlobalRunner Cup. More than two years later, he led KPMG in the Philippines’ Network of Audit Innovators and Data & Analytics Champions and its academic arm, while serving as a member of the KPMG Asia-Pacific Audit Digital Transformation Workstream. He served as a member of the Audit Methodology Group and Root Cause Analysis Team of KPMG in the Philippines. He was a regular training facilitator of KPMG on audit methodology, innovation, data and analytics, professional standards and regulatory updates. He also served as a coach for newly promoted supervisors. PJ was also the Firm’s System of Quality Management Implementation Manager and a Workforce of the Future Champion. He was also a Sampling Specialist of the Firm. In 2019, PJ was a member of the Philippine Institute of Certified Public Accountants (PICPA)’s Technical Working Group on Audit Methodology. PJ led in developing some of the innovative solutions of KPMG in the Philippines. Above all, PJ is a people investor. He invests on people who have potential and talents. That makes him a coach and mentor to some young professionals in the profession and served as a People Committee member of KPMG in the Philippines. He leads advocacy projects that help communities. He produces vlogs thru his YouTube channel, PJspirations which features stories of different individuals. As a volunteer, he is the Academic Master and Head Coach of PREMIER International Learning and Development Center, which provides coaching, mentoring, training and learning programs and platforms that promote growth and development in every individual’s life and career. He is also with the Middle East and Caspian regions of KPMG as a member of its Professional Practice group and Audit L&D for the Saudi Levant Cluster, providing subject matter knowledge and guidance on audit methodology, and learning and development programs to its offices. He is a proud Ilocano and a graduate of Northwestern University.

He also conducts #IamRemarkable sessions, a program initiated by Google for women and underrepresented groups.