Capability unlocked: Digital and AI literacy

Accounting and finance professionals now operate in an environment defined by accelerated technological change, rising scrutiny, regulatory complexity and shifting workforce expectations. 

Technical expertise remains essential, but it is no longer sufficient on its own.

This six-part series of articles shines a spotlight on the critical capabilities professionals must unlock to remain relevant, trusted and future-ready. 

Unlock digital and AI literacy

Artificial intelligence (AI) has moved from a future concept to a present-day reality. 

In the accounting sector alone, Mordor Intelligence estimates the market size of AI in accounting in 2026 at US$10.87 billion (A$15.35 billion), and this is expected to increase fourfold by 2031, transforming the profession and the skills required for success.  

Demand for digital and AI literacy is driven by factors such as automation of routine tasks, the rise of generative AI, evolving regulatory requirements and ongoing pressure to boost productivity without compromising accuracy or trust.

This term describes the ability to confidently evaluate, apply and oversee technology in a professional context and translate technical outputs into sound business judgement. 

Rather than looking to the tech team to answer AI questions, accountants are increasingly expected not only to use these technologies, but to understand their capabilities, limitations and risks.

What do digital and AI literacy skills look like in practice?

Businesses are increasingly embedding AI into daily workflows to unlock productivity, client value and strategic insight. The technology can be used to quickly identify financial trends, errors or unusual transactions, draft client emails, flag potential compliance issues and automate routine tasks. 

Data from professional services software and information company Wolters Kluwer shows more than 81 per cent of accounting firms in the Asia-Pacific region already use AI tools weekly or daily. A similar number plan to increase their AI investments over the next three years in areas such as identifying compliance risks and generating predictive client insights. 

As a result, digital and AI literacy is important for interrogating algorithmic outputs, selecting appropriate tools and safeguarding sensitive client information. Accounting expertise remains critical to verifying AI outputs and translating them into sound business advice.

Sarah Lawrance FCPA, founder and CEO of accounting firm Hot Toast and chair of CPA Australia’s New South Wales Public Practice Committee, says AI has become vital to productivity and client service across her business. 

 

"Technology like AI is moving so quickly that if you do not engage and at least become curious about it, you will be left behind."

 

Any task that involves a repeatable process is now underpinned by AI and automation technology, Lawrance explains. This enables her team to focus on higher value work.

“By using AI for tax work, we were able to finish all the 2024–25 financial year tax by 30 April last year,” she says. 

“We compressed all the transactional work that was previously part of the ‘hamster wheel’ of running a practice. We have built a huge amount of capacity so we can focus on getting more clients, delivering a better service, preparing for tax planning season and building out the AI part of the business.”

Lawrance has recently turned her experience implementing AI in her practice into a new opportunity, launching a dedicated service line to help clients adopt the technology in their own businesses.

“We have developers inhouse, but we are also building out our capacity by having them work closely with the accounting team,” she says.

What can happen if this skill is lacking?

With smart technologies embedded at the core of organisational systems, demand for digital and AI literacy will increase. Research data management platform Informatica shows 72 per cent of organisations in the Asia-Pacific region see the need for improved AI and data literacy training across their workforce.

“AI literacy is becoming a baseline expectation for accountants — like being able to read a balance sheet in finance,” says Tracy Sheen, keynote speaker and author of AI & U: Reimagine Business.

“It will not be enough to say ‘I know how to use AI’ — you will have to demonstrate it. We are moving from having ‘an AI person’ to expecting everyone in the room to understand how AI impacts risk, people and decisions.”

Lawrance says AI is driving a shift towards a “two-speed accounting industry”.

 

"If you are using these tools without proper understanding, you are putting your organisation’s reputation at risk. Understanding limitations, risks and ethical checks should absolutely be part of AI literacy."

 

“There will be those who actively adopt AI and pull ahead, and those who say, ‘let’s just wait and see what happens,’” she says. “Technology like AI is moving so quickly that if you do not engage and at least become curious about it, you will be left behind.” 

Sheen adds that a lack of digital and AI literacy also presents ethical risks if accountants become overly reliant on opaque systems.

“This is not just a tech issue anymore — it is a fiduciary issue,” she says. “If you are using these tools without proper understanding, you are putting your organisation’s reputation at risk.

“Understanding limitations, risks and ethical checks should absolutely be part of AI literacy,” adds Sheen. 

“I talk about GIST, which stands for guardrails, intent, strategy and training, with the human in the middle. If any one of those elements is missing, it falls apart.”

How can you increase digital and AI fluency?

Building digital and AI literacy requires ongoing professional development. 

“This is not something people can treat as a one-off learning exercise,” Sheen says. “It needs to be ongoing, more like micro-credentials than big blocks of study. What works is regular, practical learning such as lunch-and-learns or even having an ‘AI buddy’ to share what is working and what is not.”

Lawrance began building her own digital and AI literacy via a course on coding fundamentals, as well as listening to podcasts about small businesses using AI.  

“I also have a natural curiosity about technology,” she says. 

Hot Toast team members receive AI training to build their skills. For example, the company uses large language models such as Claude AI, which includes an education section on its site with training that employees are required to complete weekly. 

Along with foundational AI training, Hot Toast employees learn to build AI agents and their KPIs are linked to training as well as output. 

“We have a ‘human in the loop’ approach and policy, which is at the start and the end of each process,” says Lawrance, adding that the ethical use of technology requires digital and AI literacy.

“There is always a need for human oversight, and it is still incumbent on humans to sign off on AI output.”

Capability-building tip

“If you are using Google Gemini or Claude, use the education resources in those platforms — start from the top and work your way down. 

“Also, be mindful of what is happening in the accounting community and how you can join groups to learn more. I also recommend going to a CPA Australia AI Build Day to learn some skills.”

Sarah Lawrance FCPA, Hot Toast