Data Integration and the Accounting Labor Market Effects of Generative AI
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Downing-downingc-Management-2026-thesis.pdf
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Author(s)
Downing, Charles Edwin
Advisor(s)
So, Eric
Verdi, Rodrigo
Date Issued
May 2026
Publisher
Massachusetts Institute of Technology
Abstract
This paper examines how generative AI (GAI) is reshaping demand for corporate accountants. GAI is a technological shock that requires complementary investments to realize productivity gains. I show that within-industry variation in prior investment in data integration—the extent to which information can flow across a firm’s multiple internal systems automatically—predicts GAI adoption in the accounting function. I then find that firms with one-standard-deviation-greater prior investment in data integration have 2.7% lower accountant employment and 13% fewer job openings post-GAI. The declines are concentrated in junior positions, leaving demand for manager-level accountants stable, and the declines are driven by attrition rather than layoffs. I then use the text of job postings and résumés to examine changes in the task content and skill requirements of remaining accounting jobs. I document a reduction in routine information processing tasks and a shift toward analytic and strategic tasks, along with wage premia for roles performing more expert work. Data-integrated firms increasingly seek candidates with CPAs, technical backgrounds, and advanced degrees. Taken together, the evidence is consistent with GAI reducing the demand for junior accountants and pushing the profession toward higher-skill roles requiring greater accounting expertise.
MIT Department
Sloan School of Management
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