Using Generative AI Effectively in Accounting Research
I’ve noticed something lately that I think is worth talking about. More and more professionals are using generative AI tools like ChatGPT, but many are approaching them the same way they would a Google search. They type in a single, broad question, expect a perfectly tailored answer, and then walk away disappointed when the results aren’t what they hoped.
The truth is that generative AI is not just another search engine. It is closer to having a research assistant who can interact with you, learn from the way you phrase questions, and adapt to the context you provide. When used well, it can be an incredibly powerful addition to your work as an accountant.
Let’s look at a few best practices for getting the most out of these tools, along with some pitfalls to avoid.
Best Practices for Accountants Using Generative AI
1. Ask layered questions instead of single phrases.
Google thrives on keywords. ChatGPT thrives on context. If I want to learn about lease accounting under ASC 842, I might start with a broad question, but then I’ll follow up with specifics. For example, I could ask, “Can you explain the differences between ASC 842 and IFRS 16, especially in how lessees treat operating leases?” That gives the AI something concrete to compare, and the answer is more useful than if I simply typed “ASC 842 rules.”
2. Provide as much context as possible.
The more you tell the AI about your perspective, the better it can respond. If you are a student, you might say, “I am new to accounting standards and I understand revenue recognition under ASC 606, but I’m trying to learn how it compares to lease accounting under ASC 842. Please highlight the similarities and differences.” That context tells the AI where you are starting from and what kind of explanation will be most helpful.
3. Let the AI interview you back.
One of the most underused features of generative AI is its ability to clarify when something is unclear. You can tell it directly: “Ask me any follow-up questions before giving me an answer so you can make sure it’s tailored.” This works especially well when you are tackling a new or complex topic, because it forces you to slow down and think about what you really need to know.
4. Control the format of the output.
Unlike Google, where you get a list of links, you can tell ChatGPT exactly how you want the information presented. For example, you might say, “Explain the difference between LIFO and FIFO in the context of rising inventory costs, and present the answer in a table format that highlights the impact on net income and taxes.” Being deliberate about format makes the result far easier to use.
5. Always check sources and cross-verify.
This cannot be overstated. Generative AI tools can sometimes pull from outdated material or even generate inaccurate statements. If you are working with accounting guidance, always verify the answer against the authoritative standard. Think of the AI as a strong first draft generator, not the final word.
Common Mistakes to Avoid
Just as important as best practices are the pitfalls that can trip you up. Here are a few I see often:
Treating AI like Google. Typing “what is ASC 842” into ChatGPT is less effective than giving it a structured, layered question.
Not looking into source material. Even if the AI cites a standard, you need to confirm it yourself. Accounting is too precise to accept a surface-level answer.
Skipping source requests. If you do not ask for references or the basis for an answer, you may end up with an explanation that sounds convincing but lacks authority.
Copying and pasting without refinement. AI-generated text is a starting point. If you drop it directly into a report, memo, or classroom assignment without tailoring the language, it will not reflect your own judgment or style.
Final Takeaway
Generative AI is not a replacement for your professional judgment or the discipline of digging into authoritative literature. What it does offer is a powerful way to speed up your research, clarify complex issues, and see information presented in a way that fits your needs. The key is to treat it less like Google and more like a capable research assistant who works best when you give them clear instructions.
Used well, these tools can save you time and sharpen your understanding of accounting topics. Used poorly, they can leave you with vague or even misleading information. The difference comes down to how you prompt, how you interact, and how carefully you verify.