What is Artificial Intelligence?
Artificial Intelligence (AI) makes it conceivable for the machines to get the knowledge from several experiences. The machines are adjusted in a way that they can perform human-like tasks. The common example of artificial intelligence is the chess-playing computers. In this, computers act like a human being to play a simple game of chess. In recent years, AI has integrated itself with other aspects of our daily living as the power behind smart home networks and applications, and assistive voice-based technologies such as Siri and Alexa.
In the days ahead, AI is positioned to deliver an immense opportunity to accountants, and promises to bring a new standard of efficiency to their own specific set of decisions and tasks. In the greater scheme of accounting advancements, AI could radically change the profession in its entirety.
The Role of Artificial Intelligence in Accountancy
Artificial intelligence, when combined with the accountancy, will probably give us exceptional results. As we are living in the modern era, people have less time and more work to do. The conventional method is time consuming and not as efficient in bring all resources available to make best decision for clients.
The output from artificial intelligence is extremely accurate. It is a fact that artificial intelligence can digest more work in less time with perfect accuracy. This means that it is transforming the calculations to the next level. AI cannot work without the guidance of human beings.
Changes in Accountancy Due to Artificial Intelligence
The computer has brought up the revolution in the digital areas. The features and the techniques of accounting and finance haven’t faced any sort of changes until the evaluation of artificial intelligence. When the AI came it completely turns the table of accountancy and provides many capabilities and abilities.
In simple words, artificial intelligence has taken the place of human beings as it is more effective and efficient. Following changes are made by artificial intelligence in accounting field:
- AI process data more speedily which is the biggest change in accountancy.
- Artificial intelligence has a backup system. If all the data gets lost, then we can easily retrieve it.
- Reduces the chances of misguidance or calculations.
- Adds value in advice given as it makes use of all resources available.
Humans Vs. Artificial Intelligence
Human intuition has its own reasoning phenomenon. Which particularly shows that the adaptability and flexibility of human beings has a limit. While machines don’t have any limitation when it comes to reasoning and solving problems. Most of the accounting related decisions made by humans are not effective in the long-term. They make the decision on the base of past experience and biases. The decision made by human beings in the accounting field may not give all round accurate information to get to a profitable position.
But on the other hand, when it comes to Artificial Intelligence, this make the decision on the basis of current need. The decision are made without any pressure. Most importantly they make accounting decision without any emotional factor. So, in short, Artificial Intelligence has made the accountancy more effective by making the right decisions and with the correct information.
Adaptation of new methods
Humans are lazy when it comes to adopting a new thing, especially in the accounting field. But artificial intelligence adapts things just by a little bit change in their programming. The world is getting technological advanced day-by-day so is the accountancy sector. The more advanced you’re in accounting; the more effective and efficient will be the return. So, artificial intelligence has modernized accountancy by adopting new techniques and methods. Examples are the use of Bank receipts software now doing the work of a inputting information for Bookkeeping. All current major accounting software’s are moving to a more automated system of information collection and analysis such as with Xero , Sage , Clear books to name a few .
Most of the accountants think that artificial intelligence will replace their jobs, but that fear is misguided for two reasons. First, the new technology doesn’t wipe out jobs, it reinvents jobs and even creates them. Let’s describe this with an automobile example when the car came along it created an entirely new industry of jobs centred on the automobile, gas stations, manufacturing and repair shops and more.
In today’s world, accountants won’t simply be replaced by computers or robots. They will learn new skills and move into more specialized roles. Second, artificial intelligence can’t replace every aspect of an accounting job. At this point, technology can only replace routine and non-creative tasks such as data collection, auditing, general ledger and accounts payable.
Artificial Intelligence used for Prediction
Nowadays, artificial intelligence is used extensively for prediction purposes. Different artificial intelligence techniques are being used to predict stocks by analyzing historical data. As stocks are very volatile data, so it is very difficult for the human mind to predict the next day’s stocks’ parameters.
Artificial intelligence algorithms are designed in such as a way that it understands what type of data it is and then how to apply or what accountancy policy or procedure and action should be taken on that data. The way human has to do it now by recalling all the data, procedures and policies, on the other hand, the software gives you the perfect memory results. The correct and precise forecast can win you a fortune over a matter of seconds.
Over the past few decades, researchers have shown a keen interest in forecasting. Hence the Artificial Intelligence (AI) community stepped in to coming with a system accurate and smart enough to predict the stock value beforehand. Artificial intelligence just helps and makes your work easy which is difficult for the human brain. AI comes alongside you and takes up your routine and mind-numbing tasks by freeing you to move into a more advisory strategic role.
In this climate of innovation, accountants must adopt changes done by artificial intelligence in order to survive in the market. Many accountants don’t want to change, they’ve stuck to their old techniques and settle into their routines, but the truth is that artificial intelligence will likely transform the accounting profession within the next decade. So, in order to progress in the market, accountants need to be ready and keep themselves up to date.
Artificial intelligence can transform the accounting and finance industries in the next few years. According to some research, in the next two to three years, the accounting tasks such as bills, taxes, payroll, banking and more are fully automated which bring challenges as well as opportunities for the accountants. It can predict and analyse more accurately and quickly, so the accountants only have to do higher level work which these techniques could not able to do.