Jim Balsillie: CPAs Positioned to Fill Gap in the Canadian Economy
CPAs are already equipped with many of the skills that can be applied to the innovation economy, but they must be prepared, shrewd, knowledgeable and ready to embrace change with an open mind.
That was the message from Jim Balsillie, FCPA, FCA, founder of the Council of Canadian Innovators and former Chairman and co-CEO of Research In Motion, at the first session of the CPA Ontario Innovation Leadership Accelerator program on January 9.
Jim Balsillie’s lecture included topics ranging from intellectual property, data and artificial intelligence that together constitute intangible assets - the most important economic driver of our time.
The differences between the economy of tangible goods to the intangible economy of ideas is not well understood in Canada, according to Balsillie. As a result, a significant knowledge gap has been created. CPA Ontario addressed these challenges, and the opportunities, of intangible assets for CPAs in You Can’t Touch This: The Intangible Assets Debate, and The Scale and Potential of the Ontario’s Intangible Economy.
“The structure of generating and controlling intangible assets is not wholly different than the structure of planning a very sophisticated tax strategy,” said Balsillie. “It is about designing and managing abstract legal structures in a manner that maximizes prosperity.”
And with data and generative AI, arguably the most potent economic force in history, there are countless questions: Who controls the data and what do these data rights entail? Who is allowed to collect what data? What should the domestic and international rules be for AI? This is just the tip of the iceberg of unknowns – and that’s where CPAs come in.
Setting and enforcing standards has always been central to the role of the CPA, supported by a strong foundation of ethics. With many standards and regulations surrounding data, generative AI, and intellectual property still under development, the skills of a CPA can and should be used to help shape those standards to the benefit of their companies and society.
“There is a global race underway by large firms and nation states to own critical intellectual property by filing AI patents... they know that AI will uproot and transform industries in ways not seen since the rise of the internet,” said Balsillie. “Algorithms are the new machinery or equipment, and data is the new natural resource.”
“It’s important for CPAs to embrace change and welcome new opportunities with an open mind,” said Balsillie. “Virtually everyone is still finding their footing, but CPAs are ready to take on the challenge, capable of adding profound value and insight, because they have the fundamental skills and ethics and also are deeply rooted in the operations of actual firms.”
Jim’s insights were echoed by Carol Wilding, FCPA, FCA, ICD.D, President & CEO of CPA Ontario, who was in attendance to meet and greet the first cohort of ILA students.
“The reality is that accounting rules are still catching up to the incredibly fast pace of development in the digital economy,” said Wilding. “The intangible-heavy tech sector hasn’t waited for our profession and the standard setting process to land on an approach.”
This talent gap is why CPA Ontario, in partnership with Balsillie and fellow Canadian innovator John Ruffolo, created the Innovation Leadership Accelerator. This innovative 15-week program will help CPAs develop the skills and make the connections they need to take the lead in the innovation space, taught by tech sector leaders from across Canada and around the world.
The opening session of the Innovation Leadership Accelerator concluded with a fireside chat between Balsillie and Carol Leaman, CEO of Axonify, a software development company based out of Waterloo, who shared a world of insight into the power of intellectual property and data governance.
“We have pulled together an impressive roster of entrepreneurs, innovators, and experts who are leading tech and innovation here in our province, our country and globally,” said Wilding. “It is a jam-packed curriculum. One that will build on the fundamentals of what you’ve learned as a CPA and upskill your expertise to enable you to play the financial strategist role in the tech and innovation space.”
Are you interested in the Innovation Leadership Accelerator? You can contact an advisor to learn more about the program and stay in the loop for the next round of applications.