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This report will discuss Artificial intelligence and its impact on the industry we are working in. In other words, AI has changed the way both humans and computers interact with each other. It is considered to be the best technology in terms of speed and efficiency. As a result, organizations are always ready to accept changes in terms of new technology.
In my opinion, Accountants are really happy with the advancement of AI as it has made their work easier in terms of advisory and audit services.
This report is divided into two sections Learning and application.
Learning will explain our understanding of artificial intelligence and its tools. It will also depict the advantages and disadvantages of AI and its technologies.
The application will explain how AI will affect our careers in Accountancy in the future and how can we make sure that our respective jobs are not replaced by robots.
Part 1 – Learning
Artificial intelligence – Meaning
Artificial Intelligence also known as machine intelligence is the ability of a computer like a robot to perform a task assigned to an individual human. In the modern world, computers are designed in such a way that they can mimic the work that a human can perform.
The major objective of AI is Learning, reasoning, and perception. [endnoteRef:1] [1: Jake Frankenfield, Artificial Intelligence , Last Updated January 22, 2020, https://www.investopedia.com/terms/a/artificial-intelligence-ai.asp
Image source Silke Otte, How does Artificial Intelligence work , Last accessed February 23rd, 2020, https://www.innoplexus.com/blog/how-artificial-intelligence-works/]
Components of Artificial Intelligence
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- Machine Learning: ML as an essential tool of AI enables the computer to naturally learn and function with computers without being unequivocally modified. The main objective of ML is to avoid human support in the learning process. Google search engine is the perfect example which defines Machine learning. [endnoteRef:2] [2: Cade Metz, AI Is Transforming Google Search. The Rest of the Web Is Next February 4th, 2016, https://www.wired.com/2016/02/ai-is-changing-the-technology-behind-google-searches/]
- Deep Learning: Deep learning enables decision making. Under deep learning, data is collected from various sources from where it’s easily assessable and then can be easily shared via cloud computing. Deep learning also leads to speech recognition, such as Alexa. Cloud computing is the advanced technology in the computer world which raises the computing technology to an above level. In this big storage is provided to multiple users to save their data for future use. Through this, a user can retrieve and store his data over the internet anytime at a low cost. [endnoteRef:3] [3: Microsoft, What is cloud computing? , Last accessed February 22nd, 2020, https://azure.microsoft.com/en-ca/overview/what-is-cloud-computing/#benefits]
- Neural network: Neural network as a part of AI is a hardware or software which performs the same function as performed by neurons of the human brain. The artificial neural network performs tasks such as data analytics, face recognition, and many more. [endnoteRef:4] [4: Vaishnavi Putcha, Role of Neural Networks in Artificial Intelligence, Last accessed February 22nd, 2020, https://mindmajix.com/neural-network-in-artificial-intelligence]
- Computer vision: CV as an integral part of AI enables the computer to create strategies to be able to see and comprehend advanced pictures. [endnoteRef:5] [5: Jason Brownlee, A Gentle Introduction to Computer Vision, March 19th, 2019, https://machinelearningmastery.com/what-is-computer-vision/]
- Cognitive computing: Cognitive computing as a part of AI makes use of a computer to recreate human thought by making use of computer and tries to improve the interaction between machine and human [endnoteRef:6] [6: Margaret Rouse, Cognitive computing , Last accessed February 22nd, 2020, https://searchenterpriseai.techtarget.com/definition/cognitive-computing]
- Natural language processing: NLP allows the computer to understand and interpret human language to make it understandable.
Advantages of Artificial Intelligence
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- Time and cost-efficiency: AI made use of a large amount of data in the blink of an eye which human labor can take numerous hours to accomplish. In other words, the machine is more efficient than humans. They dont take a break nor do they get tired. We can use machines at any time of the day which saves our cost and time.
- Enhance customer experience: In this modern era, humans enjoy how Netflix provides them with the best movies anytime, how Alexa prepares their shopping list, and how Uber provides them with the best services at affordable rates. This is all possible due to Artificial intelligence. Thereby AI enhances customer experience.
- Reduced human error: AI reduces human error. Computers make use of algorithms and programming that prevent errors and provide data accurately.
- Support services: Many big and large organizations use digital assistants to provide support services to their customers which reduces the need for human labor. This increases productivity in the organization.
- Better lifestyles: Every day humans make use of certain applications such as Apples Siri, Google OK, Amazon Alexa, and Windows Cortona which improve their quality of life. Thus, AI has become an essential part of our lives and is used for day-to-day activities.
Disadvantages of Artificial intelligence
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- Unemployment: AI involves making use of more machines and less human force to make work more efficient. This will lead to unemployment among the labor force and will create social issues in the economy.
- High Investment: The creation of AI involves a large sum of investment and human efforts as it involves machines that make use of hardware and software that need timely update and repairment which involve high costs.
- No Creativity in AI: Machines lack creativity, unlike humans who can think beyond. As a result, with time, the technologies are outdated.
- No emotions: Unlike humans, Machines lack emotions. They can only perform a task that is programmed and cannot go beyond their functions.
Technologies in – Artificial intelligence
There are an immense number of technologies in AI and some of them that affect our career path are explained below –
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- Speech recognition: Speech recognition transfers human speech into a format that is easily understandable by computer for processing. For Instance, SIRI Speech recognition is also used in many software such as Mac, Windows, Briana and many more. Baker Tilly an accounting firm started using speech recognition to write their documents which makes work easier. This enables them to save time and cost. [endnoteRef:7] [7: David brown, Accounting for speech recognition , Last accessed February 22nd, 2020, https://www.computerweekly.com/news/2240042034/Accounting-for-speech-recognition]
- Decision management AI along with decision management enables companies to make better decisions by providing them with up-to-date information.
AI thereby debits the ROI and ROE of the company.
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- Biometrics Biometrics are used for security reasons. It deals with the recognition of the physical feature of humans. It identifies how people react to online applications .[endnoteRef:8] Big accounting companies also have biometrics of their employees to access them to use confidential information. [8: Radhika Madhavan, AI in Biometrics and Security Current Business Applications , Last updated May 20th, 2019, https://emerj.com/ai-sector-overviews/ai-in-biometrics-current-business-applications/]
- Peer-to-peer network- Under this AI technology the PCs are connected and files are shared using the network without the use of the server. [endnoteRef:9] Many accounting software such as Sage 50 made use of peer to peer network or client-server network and companies such as Deloitte provide peer to peer technology. [9: James Cope, What’s a Peer-to-Peer (P2P) Network? , April 8th, 2002, https://www.computerworld.com/article/2588287/networking-peer-to-peer-network.html]
- Cyber defense Cyberdefense in AI detects and protects from uncertain attacks on data and infrastructure. Accountant needs to be conscious about protecting their data from an outside agency and need to understand cybersecurity risks.
Companies that provide AI
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- Amazon Amazon has provided numerous AI technologies and Amazon Alexa is one of the most famous among them.
- Microsoft Microsoft has provided the economy with the most prominent product in terms of AI Cortona
- Anki One of the biggest revolutions created by Artificial intelligence was the Robot revolution by Anki which provided the world with products such as Cozmo and Fast and Furious
- Intel Recently Intel provided the OpenVINO toolkit that was used in many applications of Self kiosk checkout and Industrial robotics
Other than this, Companies such as Sound Hound, AIBrain, and Google also provide AI services.
Part 2 – Application
Artificial Intelligence in an Accounting Career
In this modern economy, Artificial intelligence is used in an accounting career to analyze a large amount of data in a short period which would have been difficult for a group of individuals. AI in accounting saves time and cost for the accountants who in turn can invest their time in some other strategic work that requires attention.
According to a survey by MIT-Boston consulting company around 79% of the people believe that AI leads to an increase in productivity. [endnoteRef:10]AI in accounting improves productivity and provides accountants with more time to be efficient. [10: Alison Snyder, Executives say AI will change business but aren’t doing much about it , September 6th, 2017, https://www.axios.com/executives-say-ai-will-change-business-but-arent-doing-much-about-it-1513305300-e041775d-a56b-4db7-be1f-47d69b060427.html]
Following is the list of work in accounting that Is performed by Artificial intelligence-
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- Audit: AI provides security to store a large amount of data in the proper format. During auditing, the auditor can easily track the files and prevent fraudulent activities. With the medium of AI, they will be able to audit the financial statements accurately and reliably.
- Accounts Payable/ Receivable: AI In accounts payable and receivable provides crucial information such as who are the debtors and creditors. What is the amount owed from and to them it also depicts the number of contracts a company has and what are the essential clauses that need to be kept in mind thereby providing efficiency and effectiveness in time and money.
- Year-end statements: Artificial intelligence provides a year-end statement from across the sources and merges them into one file. This saves time and effort for the accountant and they can easily prepare the year-end financial statements.
- AI Chatbots: AI chatbot provides an accountant with certain support services in terms of a certain area such as bank balance. [endnoteRef:11] [11: Renuka Rana, How Artificial Intelligence will impact the accounting industry , November 9th, 2018, https://www.acecloudhosting.com/blog/artificial-intelligence-impact-accounting/]
AI Revolution
The high-speed growth of AI has driven small and large companies to Adapt to technology before anyone else. An industry that encourages the technology will grow and prospect in the long run. To succeed in the long run, the industry particularly accounting needs to
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- Trained all the accountants and aspiring accounts with AI skills and technology to ensure the smooth interaction of machines and humans.
- The employees must be aware of various new techniques that might affect them in the future, and they should be ready to deal with them.
- The new AI Revolution will increase productivity by replacing repetitive tasks. [endnoteRef:12] [12: Stephane Kasriel, 6 ways to make sure AI creates jobs for all and not the few , August 14th, 2017, https://www.weforum.org/agenda/2017/08/ways-to-ensure-ai-robots-create-jobs-for-all/]
To ensure company success in the future the accountants should understand what AI is and they should educate themselves to continue in the long run.
According to The Canadian Public Professional Expert, the accountant will only gain from AI as AI will displace the task but will not replace the jobs of an accountant.
However, in the following prospect, AI will affect CPA work
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- With the help of AI tools, the accountant does not have to categorize the expenses as the software itself will do it which will save a lot of their time and efficiency.
- The AI drone technology [endnoteRef:13] also proved to be very beneficial for auditors as the auditor does not have to personally visit and count the inventory. Thus, auditors can focus their time on other important work. [13: Ethan Rotberg, Eye in the sky: How drones are assisting with audits , CPA, February 2nd, 2019, https://www.cpacanada.ca/en/news/innovation/2019-02-12-audit-drones]
- Not only this, With the help of AI, the accountants can collect and analyze data from various sources and predict their future course of action.
- Overall In the AI revolution, The audit process will be completely changed and prestigious accounting firms will generate revenue using Auditing algorithms or Audit data analytics . [endnoteRef:14] [14: CPA, Audit data analytics guide , Last accessed February 22nd, 2020, https://www.cpacanada.ca/en/business-and-accounting-resources/audit-and-assurance/canadian-auditing-standards-cas/publications/cpa-canada-audit-data-analytics-guide]
Future Role of AI in Accountancy
AI will play an important role in accounting shortly because technology will never be outdated, and accountants have the opportunity to gain experience and knowledge to survive in the AI market.
The situation is similar to knowing Microsoft Word and Microsoft Excel. Anyone with an accounting background who doesnt know how to operate them will not be able to survive and will be outdated soon.
Many of the leading accounting software providers use AI technology in their Software such as Sage 50, Xero, Intuit to provide several services such as Bank reconciliation, auditing of financial statements, preparing invoices and many more. This depicts the importance of AI shortly.[endnoteRef:15] [15: Jeb Su, Why Artificial Intelligence Is The Future Of Accounting: Study , January 22nd, 2018, https://www.forbes.com/sites/jeanbaptiste/2018/01/22/why-artificial-intelligence-is-the-future-of-accounting-study/#1b281800337b]
Not only this many of the big universities and schools are incorporating the DBMS (Database management system ) into their accounting curriculum to train aspiring students about the urge and need of Artificial intelligence. [endnoteRef:16] [16: Finance Voices, Is artificial intelligence set to replace Accountants in the future? , August 9th, 2018, https://finance.toolbox.com/articles/is-artificial-intelligence-set-to-replace-accountants-in-the-future]
Further, irrespective of whether the company is small or big it needs to adopt AI technologies now or in the future to cope with the technology. Employees can be trained by organizing workshops and seminars so that they realize the urge for AI in the accounting sector which makes work easier and more efficient.
Overall, Artificial intelligence is not likely to replace accountants in the future. In other words, Accountants are essential to check if the work done by the AI is accurate or not. Thus, Accountants are the backbone of the economy no matter if the world is surrounded by Artificial technology.
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