Accounting Trends: Impact of Artificial Intelligence and Blockchain

Running head: ACCOUNTING TRENDS
Accounting Trends
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1ACCOUNTING TRENDS
Introduction
As the Daniel Hood in his article has said, the artificial intelligence and block chain is
the one of the most trending topic in the financial in market (Hood, 2018). The machines that
operate the same consists of the capability to use the technology and get effective result in no
time (Tapscott & Tapscott, 2016). At present the businesses have been influenced by the
automation and digitalization this enhances their business process and leads to success
(Dogru, Mody & Leonardi, 2018). It has been seen that the accountants working both in the
private sector or the public sector has adopted this technology for accurate results. The
digitalization has changes the accountant’s perspective, structure and operations of their
profession for obtaining a true and fair financial position (Hood, 2018).
Evolution of of artificial intelligence and block chain in the financial sector
The artificial intelligence mechanism is the process in which business operations are
operated and demonstrated by the machines (Pannu, 2015). There is a difference between the
human intelligence and the artificial intelligence as the behaviour and function of the
artificial one can be manipulated and influenced according to the needs of the company. The
machines and hi-tech instruments are manufactured for serving the specific use of the
company (Hernandez, 2017). The organization in order to achieve their goals efficiently and
effectively uses this technique (Hood, 2018). The tasks that the automatic machines can do in
more or less no time, it is difficult for a human being to efficiently do the same task within
the same time and quality. Moreover there is no labour cost involved in this, thus reducing
the cost. Similarly, the block chain refers to as the digital currency which is transaction. New
technological trend within the business that use the computer programming language to make
the contracts and conduct a systematic transaction (Hofmann, Strewe, & Bosia, 2017).

2ACCOUNTING TRENDS
Critical evaluation of the block chain and artificial intelligence in the field of
accountancy
The technology of block chain is created for the facilitation of the transaction by
utilizing the crypto currency or bit coin. The block chain structure is the transaction ledger
that records the transaction and its source in the lost known as ‘blocks’(Tapscott & Tapscott,
2016). The parties of the Block chain transaction has been assigned an identifier and is
equipped with the technology to encrypt and decrypt the information that is communicated
(Cohen & Feigenbaum, 2014) The blocks or the list of transaction is then can be viewed with
the help of computer networks that are connected to the block chain. The block chain also
facilitates the level of protection against frauds. The records are layered with privacy hence it
is totally secured and the various finance data are safe (Hood, 2018).
Techniques and procedures
There is much more than just the bit coin that is involved in the style of block chain
technology (Vigna & Casey, 2016). There are many other kinds of crypto currency that is
involved in the operations of this technology. The block chain technology in the financial
sectors are known as smart contracts as it can effectively verify the transactions beyond the
transfer value. The businesses who has adapted the artificial intelligence and block chain has
a deep and a broad scope and potentiality (Hood, 2018). This has led to threat to the
accountants and the auditors as the digitalized soft wares are capable of doing their jobs more
efficiently with less time spent(Chan & Vasarhelyi, 2018). There are many renowned
organisations uses the artificial intelligence and the block chain technology for their
accounting process that helps them to report the codification item smoothly and the analysis
is dome systematically without any hindrance as well as the performance can be evaluated.