Peak body warns overreliance on AI could backfire on businesses
Businesses in Australia are beginning to reduce hiring of accounting and finance staff in the wake of artificial intelligence adoption, prompting a warning from the country's professional accounting body.
CPA Australia's Business Technology Report 2025 revealed that eight per cent of Australian businesses have reduced hiring of junior or entry-level accounting and finance staff.
Australia's reduced hiring for entry-level roles is behind the Asia-Pacific average of 17%, and far below the 32% of organisations in Mainland China that have slowed down in hiring for these positions.
According to the report, 43% of Australian employers have not experienced a change in their hiring practices, while 31% said it's too early to say.
CPA Australia's findings are in line with recent reports suggesting that Gen Zs are losing entry-level jobs to AI. Jobs and Skills Australia also previously warned that entry-level roles may be affected by further implementation of generative and agentic AI in the future.
Warning to Australian firms
But Gavan Ord, CPA Australia's Business Investment and International Lead, said the regional experience suggests Australian firms reducing entry-level and junior hiring will swiftly increase as AI adoption continues.
"Australian businesses have now caught the AI bug. They are now the most likely among the surveyed markets to be planning AI investments in 2026, although automation remains unpopular," Ord said in a statement.
The official warned that overreliance on AI could ultimately backfire on businesses, pointing out there are businesses that suffered financial and reputational damage for being too in favour of AI.
"Businesses must not underestimate the importance of keeping people in the loop. Specialist human oversight remains essential. Turning over finance functions that require accuracy, assurance and verification to technology leads to elevated risks," he said.
"Businesses still need accountants for many critical functions, especially providing strategic advice and insight that supports senior leaders and ensures sound financial oversight."
Being too dependent on AI could leave businesses with a "knowledge and experience chasm" that AI is not yet capable of filling, according to Ord.
He advised that businesses should strike the right balance between efficiency gains and the human expertise needed to supervise AI.
"The key to technology is understanding the problem you want it to solve – not chasing the latest shiny thing. Some businesses seem to be experiencing FOMO when it comes to AI – and they are the ones who risk being behind the eight ball if they don't invest wisely in their people and fail to follow appropriate processes to identify the right AI solutions for their needs," he said.
