By Hafiz Imtiaz Ahmad

In the light of recent developments in AI, the purpose of this editorial is to reflect on the ways artificial intelligence redefines professional practice and reaffirm the enduring power of human judgement and creativity. The wide adoption of generative system across industry sectors has raised both optimism and concern, raising questions about how far machine intelligence can go into space once left for humankind While these technologies are able to quickly process information, automate repetitive tasks, and support decision making yet they often struggle with subtleties of context, creativity and ethical responsibility.

This article discusses the balance between augmentation and replacement. Its argument is that the best path lies in collaboration between human insight and intuition and computational power. It not only reminds us of the productivity gains achieved using AI but also of the essential domains where human qualities—creativity, ethical judgement, and emotional intelligence— remain irreplaceable. Based on examples of valuation, report writing, and forensic accounting, the discussion points out how professionals should utilise AI responsibly without discarding the distinctive offerings inherent in human expertise.

The proliferation of artificial intelligence (AI), particularly generative AI systems, is undeniably reshaping industries and societies, prompting vital discussions about the evolving relationship between human and machine intelligence (Auer et al., 2025). While AI offers unprecedented capabilities for automation, efficiency, and innovation, a fundamental truth remains: the distinct and irreplaceable value of human attributes is paramount. The path forward is not one of AI replacing humanity, but rather a synergistic collaboration where human ingenuity and AI’s computational power converge to unlock extraordinary potential.

Valuation of Privately Held Companies: The "synergistic collaboration where human ingenuity and AI’s computational power converge" is crucial for valuing privately held companies. AI can process vast amounts of financial and market data, but human analysts are needed to interpret qualitative factors, assess management quality, evaluate non-standardized financial information (common in private companies), and apply subjective judgments that AI cannot replicate.

Analysts' Work of Report Writing: AI can assist in generating initial drafts of valuation reports, compiling data, and performing routine calculations. However, the human advantage lies in structuring the narrative, articulating complex valuation methodologies clearly, explaining the rationale behind assumptions, and ensuring the report resonates with the intended audience. AI can't grasp the nuances of presenting a persuasive and defensible valuation argument.

Forensic Accounting: The "evolving relationship between human and machine intelligence" is highly relevant. AI can detect patterns and anomalies in large datasets that might indicate fraud or misrepresentation in financial statements, which is vital for forensic accounting. However, human forensic accountants are indispensable for investigating these anomalies, understanding the context, interviewing individuals, and building a legal case. AI helps identify the "what," but forensic accountants discover the "why" and "how."
The Enduring Realm of Human Creativity and Higher-Order Thinking

Despite their increasing sophistication, current generative AI systems predominantly excel at tasks that draw upon existing human knowledge. For example, Crane et al. (2025) evaluated the macroeconomic knowledge of large language models, indicating their strong capability in processing and recalling established information. These systems can significantly assist with data collection, conduct thorough literature reviews, and generate initial drafts, effectively performing considerable "heavy lifting" that allows human analysts to be more productive, as suggested by Coupé and Wu (2025) in their meta-analysis on the impact of generative AI on productivity. However, AI continues to struggle significantly with genuine creativity, the formulation of truly original hypotheses, and the nuanced "epiphany" required to detect anomalies that lead to fundamental scientific discoveries (Ding & Li, 2025). Humans consistently retain the critical edge in complex theorizing, synthesizing disparate information, posing innovative research questions, and rigorously evaluating the robustness of empirical findings, especially in fields like accounting research as noted by Keloharju and Keloharju (2025). Furthermore, even when AI generates content, it can often be too general, vague, and notoriously prone to "hallucinations"—inventing references and data—thereby necessitating substantial human effort to ensure accuracy and relevance, as Friese (2025) emphasizes in the context of qualitative analysis. This underscores that while AI can offer preliminary suggestions and analyses, the human analyst ultimately possesses the discerning judgement to determine what constitutes a meaningful, accurate, and insightful conclusion.

Valuation of Privately Held Companies: This section directly addresses the limitations of AI in "genuine creativity" and "formulation of truly original hypotheses." When valuing privately held companies, especially those with unique business models, nascent markets, or intangible assets, human creativity is essential to develop appropriate valuation models, identify comparable transactions (even if imperfect), and forecast future performance based on qualitative factors. AI, relying on existing data (Crane et al., 2025; Coupé & Wu, 2025), might struggle with truly novel approaches needed for unique private firms. The "nuanced epiphany" and "complex theorizing" are critical for determining the true value drivers.

Analysts' Work of Report Writing: "Humans retain the critical edge in complex theorizing, synthesis, asking innovative research questions, and evaluating the robustness of empirical findings" (Keloharju & Keloharju, 2025). This applies directly to report writing. Analysts must synthesize diverse financial and non-financial information, craft a coherent narrative, and answer specific research questions posed by clients, requiring creativity beyond what AI can offer. The "hallucinations" of AI (Friese, 2025) necessitate human review to ensure the accuracy and relevance of any AI-generated content in a valuation report.

Forensic Accounting: "AI struggles significantly with genuine creativity... and the nuanced 'epiphany' required to detect anomalies that lead to fundamental discoveries" (Ding & Li, 2025). While AI can flag suspicious transactions, a forensic accountant's "epiphany" or creative investigative approach is needed to understand the intent behind such transactions, uncover hidden schemes, or connect seemingly unrelated pieces of evidence to build a comprehensive fraud case. The ability to ask "innovative research questions" is key to uncovering complex financial misdeeds.

The Irreplaceable Core of Emotional Intelligence and Ethics

Human judgement and ethical awareness are absolutely indispensable for the responsible development and deployment of AI. This necessity extends to ensuring auditable decision trails, maintaining transparent recommendation logs, and incorporating compliance-by-design features within AI systems to guarantee adherence to regulatory frameworks. For instance, in the legal and ethical landscapes shaped by AI, human oversight is crucial for accountability. Moreover, policies must be meticulously crafted to ensure explicit consent for data usage, be comprehensible to all users regardless of their technical background, and actively guarantee accessibility, thereby reflecting a broader commitment to social justice and inclusion in the age of AI. While AI can process vast amounts of data and identify patterns, the critical decision-making processes, especially those with significant societal or individual impact, must remain firmly within the purview of human ethical reasoning and empathy.

Valuation of Privately Held Companies: "Human judgement and ethical awareness are indispensable for the responsible deployment of AI." In valuation, ethical considerations are paramount, especially regarding conflicts of interest, data privacy of private company information, and ensuring the fairness and accuracy of the valuation opinion. Human judgement is also required to assess management's integrity and future plans, which heavily influence a private company's valuation.

Analysts' Work of Report Writing: Analysts are often tasked with conveying complex financial information and valuation opinions to diverse stakeholders. This requires "intricate human interaction, such as face-to-face communication, empathy, and persuasion." A valuation report is not just data; it's a persuasive argument. The analyst's ethical commitment ensures the report is unbiased and transparent.

Forensic Accounting: This section is foundational for forensic accounting. The field demands high ethical standards and "human judgement and ethical awareness" to navigate sensitive investigations, handle confidential information, and present findings in an objective manner. Forensic accountants must also build rapport and trust with clients and witnesses, which relies on emotional intelligence. The need for "auditable decision trails" and "transparent recommendation logs" (Hupont et al., 2023) directly supports the accountability required in forensic accounting.

AI as an Augmentative Partner, Not a Replacement

The true and most impactful power of AI lies in its inherent capacity to augment, rather than replace, human capabilities. By automating routine, repetitive, or highly data-intensive tasks, AI effectively frees up valuable human time and cognitive resources, allowing individuals to concentrate on higher-level, more complex, and creative work, thereby significantly boosting overall productivity. This dynamic, symbiotic relationship necessitates a robust framework of human-AI collaboration, where AI systems support recommendations and analyses within a clear structure of comprehensive human oversight. AI can even serve as a catalyst for human reflection, prompting deeper thought and analysis that can lead to long-term behavioral improvements and enhanced decision-making.

Valuation of Privately Held Companies: AI's capacity to "augment human capabilities" by automating "routine or data-intensive tasks" directly benefits valuation. For instance, AI can rapidly process large datasets of comparable company financials or transaction multiples, build initial financial models, and perform sensitivity analyses. This frees up human analysts to focus on more complex, qualitative aspects that drive private company value. The "symbiotic relationship" means AI provides the data crunching, and humans provide the strategic insights.

Analysts' Work of Report Writing: AI can "boost productivity" for analysts by automating data compilation, formatting, and initial text generation for reports. This allows analysts to spend more time on qualitative analysis, refining arguments, and ensuring the clarity and persuasiveness of the report. The "framework of human oversight" (Raisch & Fomina, 2024) ensures that AI-generated content adheres to the report's objectives and quality standards.

Forensic Accounting: In forensic accounting, AI's ability to "augment human capabilities" is revolutionary. AI can analyze vast financial records to identify suspicious patterns, unusual transactions, or anomalies that human eyes might miss. This significantly speeds up the initial detection phase. However, human forensic accountants still need to "investigate" these flags, understand the context, and build the investigative narrative. AI helps identify the "red flags," while humans investigate the "crime scene."
Adapting for the Future: AI Fluency and Education

To fully leverage the myriad benefits of human-AI collaboration, the development of "AI fluency" is paramount. This concept involves comprehensively educating individuals about AI's diverse capabilities, as well as its inherent limitations, and fostering the critical ability to evaluate the outputs generated by AI systems. Concerns about over-reliance on AI are indeed valid, as excessive dependence could potentially lead to the under-development of essential human analytical skills, as highlighted by Gerlich (2025), who discusses the impacts of AI tools on cognitive offloading and the future of critical thinking. Therefore, educational frameworks should thoughtfully integrate AI tools in a structured and responsible manner, crucially requiring students to provide observable evidence of their own cognitive processes and critical engagement with the AI's output, as articulated by Coşgel et al. (2025) in their framework for teaching economical writing in the age of AI.

Valuation of Privately Held Companies: "AI fluency is paramount" for future valuation professionals. They need to understand how to use AI tools for data analysis, market research, and financial modeling, but also critically evaluate AI's output. This prevents over-reliance and ensures that human analysts maintain control over the valuation judgments and assumptions, especially for the unique characteristics of private firms.

Analysts' Work of Report Writing: For analysts, "AI fluency" means knowing how to leverage AI tools for research, drafting, and even grammar/style checks in report writing, while understanding the limitations (e.g., "hallucinations"). "Cultivating uniquely human skills like critical thinking and creativity" (Budhwar et al., 2023) ensures that the reports remain insightful, accurate, and compelling, rather than generic AI-generated text. The need for "observable evidence of their cognitive processes" (Coşgel et al., 2025) ensures analysts aren't just copying AI output.

Forensic Accounting: Forensic accountants need "AI fluency" to effectively utilise AI tools for anomaly detection, data mining, and pattern recognition in large datasets during investigations. However, the concern about "over-reliance on AI" and "under-development of essential analytical skills" (Gerlich, 2025) is particularly relevant here. Forensic accounting requires deep analytical skills, investigative intuition, and the ability to connect disparate pieces of evidence, which must not be supplanted by AI dependence. Education must ensure they can use AI as a tool without losing their investigative acumen.

In conclusion, the advent and rapid advancement of AI do not diminish the intrinsic value of the human spirit; instead, they redefine and significantly elevate the human advantage. Our unique and inherent capacity for complex reasoning, genuine creativity, profound emotional intelligence, and astute ethical judgement forms an indispensable foundation. By strategically embracing AI as a powerful augmentative tool and actively fostering a society fluent in both technological capabilities and human-centric values, we can navigate the complexities of the age of AI not as passive observers, but as collaborative architects of a more productive, innovative, and ethically grounded future.

References

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About the Author:

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Hafiz Imtiaz Ahmad received his Ph.D degree with a specialisation in finance from University of Lille, France in 2011. He graduated with a “mention très honorable avec félicitations unanimes du jury.” His domain of research includes equity valuation specifically residual income and abnormal earnings in the context of emerging markets. Noted contributions to the academic community for research in this area have resulted in publications in competitive journals such as Comptabilité–Contrôle–Audit in France and The Value Examiner in the United States. Dr.Imtiaz served as an Assistant/Associate Professor and Director of Professional Enrichment in New York Institute of Technology (2013-2018) and presently serving as a faculty member in Higher Colleges of Technology, UAE.