TECHNOLOGY

2022 TECHNOLOGY TRENDS

To say we are living in interesting times is a significant understatement. The rapid evolution of technology on multiple fronts is significantly and rapidly changing every aspect of our lives and commerce. As CPA professionals, whether serving in our role of attesting to financial reports, managing the financial affairs of businesses small and large, serving as trusted advisors to business or educating our next generation of knowledge workers, it is imperative that we all develop an awareness and understanding of the key mega technology trends. This article provides a baseline introduction to the key technology trends of which every CPA professional should be aware. The graphic below illustrates the key trends shaping our world today. Each of these evolving technologies is having a substantial impact; however, when analyzing them as a group and the relationships between them, you begin to understand the unprecedented period of change we have embarked upon in the history of humanity.

By John H. Higgins, CPA, CITP Cloud computing

This is the foundational technology that enables the emergence of all the other technology trends. The cloud computing infrastructure provides the capacity, reliability, security and scalability that is necessary to process the massive amounts of data produced by all these technologies.

IoT / big data / data analytics

These three technologies work hand in hand to provide us with access to an unprecedented level of information in every industry. The internet of things (IoT) refers to the billions of sensor devices that capture a variety of data values, resulting in “big data” sets. Using data analytics software, big data is processed to provide information that was not available even a decade ago. One of the most practical examples of the application of this trio of technologies is Google Maps. The smartphones that are moving around the world in vehicles serve as IoT devices, feeding into massive datasets, which are analyzed in real time, providing us with visual navigation assistance in our vehicles. Pause for a moment to contemplate just how much data is being analyzed by Google Maps around the world 24/7 and how many people depend on that information to get them from point A to point B as efficiently as possible. Mind-blowing!

Robotic process automation (RPA)

The concept of RPA has been around for quite a long time under the guise of different technologies. One of the earliest examples of RPA is the original player piano, which originally used perforated paper to play music on the piano hands-free. Today, of course, player pianos play digital files. A more recent example of RPA is the use of macros in Excel and other applications. An Excel macro executes a series

The rapid evolution of technology on multiple fronts is significantly and rapidly changing every aspect of our lives and commerce.

of keystrokes to perform a routine task in Excel. A classic example is a macro that selects a pre-defined range of cells and prints them to a specified printing device. RPA is simply the technology that automates routine computing processes. The requirements for an RPA application are defined inputs, processes and outputs. If you contemplate the various processes in your office, you will realize just how much of your day-to-day operations meet these criteria. The difference today is that RPA technology can be used to automate increasingly sophisticated processes. You can expect to see a whole lot of RPA applications coming online throughout society over the next few years. How long do you think it will be before McDonalds is using RPA technology to automate the order fulfillment process from end to end?

Artificial intelligence (AI)

While RPA is often described as the automation of doing, AI is often described as the automation of thinking. The evolution of AI applications to power devices that think and act like humans is at the same time fascinating and scary. Take the simple example of Alexa asking if you would like a list of things to do today in New York City while you are visiting. It is common for people to carry on complete conversations with Alexa, Siri and others like them. Think about your business and the potential to automate decisionmaking. The entire process of preparing a corporate tax return with all the various decisions independent of human intervention is clearly within reach of this technology. AI has already had a substantial impact and will be the most disruptive and enabling technology of our time.

Blockchain technology

In the graphic on the preceding page, I purposefully placed blockchain along the spectrum of all the other technologies. The reason for that is blockchain is a revolutionary model for storing data. Blockchain is so powerful since the database is replicated across multiple storage platforms, providing truth through consensus, and the data stored in the blockchain is immutable. There are multiple applications for blockchain, both public and private. The original application of blockchain is the Bitcoin cryptocurrency system. Cryptocurrency has unleashed the investment of billions of dollars in research and development for all sorts of applications for blockchain technology. It is poised to have a substantial impact on the flow of commerce and information for years to come.

Cryptocurrency and digital money

Finally, any conversation about emerging mega technology trends would be incomplete without a discussion of cryptocurrency and more broadly, digital money. There is an especially important distinction between cryptocurrency and digital money. The former is a monetary system developed outside governmental control, whereas digital money typically refers to the transformation of fiat money from paper and coins to digital transactions. If you think about it, we have accelerated this transformation because of the COVID-19 pandemic. The overwhelming share of consumer transactions are now completed with credit cards, money transfer apps like Venmo and Zelle, and traditional ACH transfers. This technology trend is likely to have the most significant impact on CPAs and other financial professionals as our entire global monetary system undergoes a transformation. We have only touched the surface on each of these technology trends. I hope that you will take the initiative to learn more about them as part of your ongoing professional education. Each of the technologies discussed is certain to have a significant impact on your organization and your career.

Each of the technologies discussed is certain to have a significant impact on your organization and your career.

John Higgins, CPA, CITP, is chief partnership officer and co-founder of CPA Crossings LLC. He shares his expertise as a nationally recognized speaker on business technology at education conferences and strategic planning retreats and through online webcasts. Contact him at jhiggins@cpacrossings.com.

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