Over the decades, Artificial intelligence is being incorporated to increase streamline business operations. As per a study conducted by the Boston consulting group, over 3000 executives and managers set AI as a priority tool to form business strategies largely in the accounting department. Large firms installed AI to perform auditing processes and estimation, along with that it also requires accountants to supervise technology. A recent MIT consulting group survey revealed more than 80% of the executives believed AI leads company productivity set them in competitive advantages (Ovaska-Few, 2017). Early investments of big four giants of USA impact the accounting industry in such a way, it has not witnessed in five hundred years. Bill grades referred AI rise in the accounting industry as Holy Grail minimizes the costs, boosted productivity and seen as time savers. Usually, certain opponents believe AI introduction in accounting could be responsible for job loss unless it was founded it won’t eliminate accountant, in fact, enables them to execute complex tasks. On that note, the purpose of writing this post is to cover each dimension predicting the impact of AI presence in the accounting industry.
Growth Of AI In Accounting Industry
According to several accounting assignment help experts, AI is the best complementary tool highly used in auditing processes. As a global study conducted by Sage, it was founded 50% of accountants surveyed from 3000 executives said; they are looking for the AI automation in the operation to free up their time. Most people who surveyed believed, we may not require following auditing if we access automated validated information (Centurion Reckord (2020). With an increased amount of accounting data, AI demand will be automatically increased as Natural language processing demand required to modify the data. NLP is used to language translation, information, report generation, identification of contract interpretation and many more. As per market and markets analysis, 2020 growth of AI is expected to grow from USD 666 million in 2019 to USD 4,791 million by 2024, at 48.4%CAGR amid the forecast period.
How AI Can Influence Accounting Industry
As per essay help experts, along with increasing data, several giants have been investing in AI to process an immense volume of database. According to accountacyage 2017 report, a significant number of the largest accountancy firms have received hefty fines from the financial reporting council in regards to malpractice in auditing processes including Rolls Royce and BT (Centurion Reckord (2020). As a result, a strong presence of AI could be seen in the auditing sector to manage voluminous data and generating new insights among anomalies.
The world of accounting is not being the last industry affected by the growth of AI. Even it has witnessed so many failures, its holy grail performances have increased abnormally. Google believes AI will achieve human intelligence by 2029 as well as Forrester research estimates that over 16% job will be taken by robots. But reality check comes with a different scenario. It has founded an accountant will be lesser affected by the AI. Various giants have been developing cloud-based accountancy software such as Quackbooks to keep the receipt and tracking the report (Gass, 2018).
AI Changes Accounting Industry In Following Ways-
Accountants who are incorporating AI have to see the mundane services performed by junior staff to reduce the effects of time-consuming tasks such as bill charges and invoices. It has been identified by several assignment writers, a large section of accounting system has incorporated machine learning into transaction code. On the other side, invoice fetching apps are used to turn pixel into data with an application of OCR( optical character recognition). The data generated can be converted into a business transaction that further imported into an accounting system(Ahmed, 2020).
In distinct scenarios, it has been noticed account payable automation software speed up matching of purchase orders, packing slips and invoices. It automates the payments and identified the duplicate invoices so to avoid over payments. From the above information, it can be concluded AI plays a significant role in processing information.
Here are the following ways AI enhancing the performance of the accounting industry.
Reduces The Risk Of Repetitive Tasks
AI automation in accounting system avoid overpayments allows users to create management without the interference of IT management. AI and machine learning automates the data and evaluate the risks of anomalies and reduces the cost of the risk for everyone.
Improve The Performance And Quality Of Data Analysis
Artificial intelligence has the capabilities to process the data and provide insights among voluminous data sets of the company. That can be used by the accountant and financial executives to detect a complex pattern and extracting minute details useful for business productivity.
Reduce Error And Increase The Security Level
AI creates new job opportunities allowing the accountant to focus on their clients. With increasing job security, cyber security is another concern originated. According to essay writer, as cyber security is an application of AI, there is no need of worrying about stored data and its security. It mitigates the risk of error as well as the presence of bugs inside the software.
Thus it can be concluded to live in the competitive edge, with AI presence accounting firms have been adjoining success and witness of increased market sizes. As a result, a strong presence of AI could be seen in the auditing sector to manage voluminous data and generating new insights among anomalies. AI has the capabilities to process the data and provide insights among voluminous data sets of the company so that the productivity of the company has been increased. It has been identified large firms installed AI to perform auditing processes but it also requires accountants to supervise technology.
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Ahmed, A. (2020). “From Data to Wisdom” Using Machine Learning Capabilities in Accounting and Finance Professionals. Journal of Talent Development and Excellence, 12(3s), 2019-2036.
Centurion Reckord (2020)8 Ways Artificial Intelligence is changing the Accounting Industry, data retrieved from- https://rekordcenturion.co.za/193585/8-ways-artificial-intelligence-changing-accounting, data accessed on 7 july, 2020
Gass.J (2018).AI’s Impact On Accounting And Finance, retrieved from- https://www.forbes.com/sites/theyec/2018/09/10/ais-impact-on-accounting-and-finance/#21a48857e855, data accessed on 7 July, 2020
Markets and Markets(2020).Artificial Intelligence in Accounting Market, data retrieved from- https://www.marketsandmarkets.com/Market-Reports/artificial-intelligence-in-accounting-market-122034791.html, accessed on 7 july, 2020
Ovaska-Few. S (2017) Journal of Accountancy, How artificial intelligence is changing accounting, retrieved from https://www.journalofaccountancy.com/newsletters/2017/oct/artificial-intelligence-changing-accounting.html, Data Accessed on 7 july, 2020