What is Artificial Intelligence?
Artificial intelligence (AI) is a wide range branch of computer science that stresses on the development of intelligence machinery that could think and work like humans.
AI simply refers to a computer system which could sense their surroundings, think, learn and as a result could take actions. This ability to respond to the surrounding environment is called Artificial Intelligence, apart from the automation of mundane tasks. Machine learning complex Algorithms and chatbots are examples of AI that are already used in all corporates nowadays.
In the coming decades, the rising demand for AI will not only penetrate deep into the technical computing area but would widely replace the human supremacy.
Categories of AI
Theoretically, AI can be categorized into three different type of systems
- Artificial Narrow Intelligence: also known as Automation intelligence. The sum of intelligence that can do single tasks more efficiently with a smart approach. For example, Recognition of speech, Voice Assistance.
- Artificial General Intelligence: also known as assisted/augmented intelligence. This category of intelligence has a combined quality of cognitive intelligence and emotional intelligence. This type can perform more than one task at a time smartly and efficiently just like humans do.
- Artificial Super Intelligence: this can also be known as Autonomous Intelligence. As the word says, this type of intelligence can work beyond the capabilities of human’s capacity of working. This is the type which can actually surpass the intelligence of humans.
In the profession of accounting and management, where human beings are dealing with day to day repeated tasks, AI is considered to be the best replacement of human capabilities. As it provides more efficient results in less time. Many Accounting firms and corporates use Artificial Intelligence to perform a duty of analyzing, monitoring and resulting in a large data at higher speed and less cost which is surely not possible for humans.
AI in the Accounting Industry
Nowadays AI is not only compensating the complex tasks assigned to humans but also helps the businesses by improving the speed and efficiency of operations. Accounting field holding the trending attention and innovations in this area has brought the economies to the progressing state.
- The aim is to create an on-time and efficient financial report or other statements that are required for daily operations.
- Accounting company has to create a few numerical strategies as AI helps in providing data from various sources, compresses that data, and work on its integration. This helps in speeding up the monthly process
- The data integrated by AI becomes more accurate because of the involvement of the machine.
- The procuring method of firms was conventionally used by filing the documents but because of AI, this method was replaced by storing data in computer systems. That makes the work paperless and easier.
- The fluctuation in prices among various suppliers can be easily tracked down by the help of AI.
- This system has the ability to manage the invoice system which makes the credits and transaction payments of accounts to work more efficiently with the help of digital workflow.
- By the help of AI digitalization the security of preserved data is ensured. The access to data is limited to only concerned people. So the efficiency it provides is 100 per cent.
- It is very time-consuming for reviewing and approving all the company’s expenses and to be sure about the company’s policies. AI makes it much easier as machines can check receipts, review expenses, and warn people if there is any blunder.
- AI has the ability to resolve all the queries of users regarding billing, dues, current account balance and another status of accounts.
With the high advancement of AI system and accounting field being totally dependent on AI systems, it plays an important role in uplifting the efficiency of businesses. The obvious impact is that the work errors are reduced and enterprise risks are minimized leading towards high business competitiveness. Artificial intelligence in all the sectors of development is now being used as a double-edged sword.
How Accountants use AI capabilities?
Performance of AI in the accounting industry
- Improvement in accounting accuracy
- Reduces the possibility of financial fraud to some extent
- Enables the enterprises to cope with risks
- Alerting about the security issues
- Addressing the threats to the security of accounting information
- Provide greater help to the accountants all over the globe sitting in any corner of the world
Accountants are of the great help for the businesses personnel and other stakeholders, to make their better future decisions, by applying their technical accountancy and financial knowledge. High quality of financial data and non-financial information is needed by the accountants to analyze and support their decision-making and advice. This service of accountancy is widely used across the business sector and the practice of capturing, preparing, checking and communicating information analyzes to make a wide variety of decisions.
As for the provision of better advice and decisions making processes, the use of such technologies by the accountants is now a trending way as it helps in:
- Supporting decision-making and providing better and cheaper data
- Creating cognizance from the analysis of data
- Saving the time for more valuable tasks
The core nature of machine learning techniques leads towards the inevitable improvements across all areas of accounting also that can automate many tasks and decisions as well as equip accountants with powerful new capabilities.
Therefore, it is important to clarify issues building in accounting and business where machine learning seems to be fruitful and where problems arising are less likely for these techniques. This ensures that the adoption of such techniques is driven by business needs.
Will AI affect Accounting Jobs?
According to a study, it is expected that accounting tasks such as tax, payroll, audits, and banking would be completely automated using AI. So, what will accountants do now and how will AI transform the profession?
Artificial intelligence is definitely freeing up accountants from doing menial tasks, and this allows them to widen their roles. We can take an example of auditing of expense claims where AI can be used to remember and implement a company’s expense policy. This would mean that accountants would no longer have to look through the receipts and categorize dates and VAT numbers. Similar to cloud accounting disruption in the accounting sector, accounting professionals will have to rethink their profile.
Having better technology wouldn’t mean anything if one cannot act on it. That’s where the role of an accountant comes. Even if machines can perform all the calculations or initial audit-related tasks, someone would be needed to analyze the process and draw a meaningful conclusion.
With the rise of AI, accountants are expected to move their roles into consulting and advising to ensure that they are taking full advantage of automation while helping their business grow.
We at Future Connect are moving ahead with the rapidly changing industrial environment. We are a dedicated training service provider in cloud accounting which is supposedly going to be less affected by AI. If you lack training or necessary skills in the field of accountancy check out our training programs here.