Artificial intelligence (AI) Assignment with Answers

Applied Research Project L :
Assessment 2

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Aim..............................................................................................................................................1
Study background........................................................................................................................1
Research problem ........................................................................................................................1
Research objectives .....................................................................................................................1
Research question .......................................................................................................................1
Study significance .......................................................................................................................1
Literature review .............................................................................................................................1
Impact and benefits of AI on accounting practices .....................................................................1
Challenges of AI in finance practices .........................................................................................2
Ethical challenges of increasing role of AI in accounting ..........................................................2
Data collection ................................................................................................................................2
Ethical considerations .....................................................................................................................3
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Aim
To analyse the ethical impact of artificial intelligence on accounting practices in
Australia.
Study background
Artificial intelligence (AI) is defined as the excellent creativity and intelligence ability to
perform variety of tasks by the machines. With the advancing technologies machines are
becoming capable and efficient to perform various tasks which were earlier dominant for only
human beings. It has increased the new growth opportunities and efficiencies in the business
functions and specific professional roles such as in accounting (Pannu, 2015).
Research problem
In Australia the use of AI has been increasing and experts are predicting that accounting
service providers may not grow if they will not integrate AI with the small businesses. However,
the increasing role of AI is creating a threat on human job roles and the accounting profession.
Thus, it is essential to consider the ethical issues in light.
Research objectives
 To evaluate the benefits and challenges of AI in accounting applications
 To analyse the ethical aspects of AI usage
Research question
 What is the impact of AI on accounting profession?
 How ethics affects the increasing role of AI?
Study significance
The ethical negligence is gradually turning into a big threat to the employment
opportunities and the existence of the humanity. The study will help to provide suitable solutions
for sustaining the human welfare and development by identifying the ethical challenges and
issues.
Literature review
Impact and benefits of AI on accounting practices
According to Kamar, Kapoor and Horvitz, (2015) AI are making the accounting
operations very easy and convenient. The automated accounting operations by AI are making
them more accurate and quick. The AI efficiently performs the monotonous activity of number
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crunching. These machines also provides the benefit of managing additional data of the
organisation. West and Bhattacharya, (2016) described that advanced features of AI such as data
categorisation and automatic records upgrade helps to keep the records properly and to assess the
financial trends. Thus, organisations can make better decisions and strategies on the basis of their
financial performance and trends.
Challenges of AI in finance practices
Despite several benefits it is not easy to incorporate the AI into accounting practices.
According to Sutton, Holt and Arnold, (2016) the training has been primary concern for this. In
order to increase the role of AI business organisations need to provide training to both
accountants and service users. Along with the ethical challenges it is also challenging making
people believe that AI is not a threat to the job roles of accountant instead it will assist the
flexible decision making capabilities of the accountant with the quick and rapid calculations.
Issa, Sun and Vasarhelyi, (2016) elucidated that though AI has become capable to make decision
on the basis of judged but still they are based on predefined algorithm. Thus, if their design is not
ethical and is used unethically then it can cause huge threat to the privacy and safety of the
personal data of users and thus the financial performance can be challenged adversely.
Ethical challenges of increasing role of AI in accounting
The learnings and performance of AI depends upon the teachings and algorithms offered
to them by human beings. Pannu, (2015) stated that the accounting operations involved very
sensitive data which can influence the business growth and privacy. Thus, the privacy and
security concerns are the necessary considerations which needs the ethical attention. The
customers as well as service providers must have the detailed knowledge that how the AI using
accounting information in processing and exchanging. Thus, there is need of considering ethical
approaches in designing stage. As per the view of Kokina and Davenport, (2017) limitless
efficiency of AI is also making their use as an integral part of the business. It is reducing the role
of accountant and thus the uncontrollable AI can soon also replace the number of jobs. Thus,
ethically it is required that participation of the AI must be regulated and controlled.
Data collection
Data collection is the process to collect the research data so that necessary conclusions
and findings can be obtained. There are various approaches for this purpose. In the primary data
collection method data is collected by the researchers while in secondary collection methods the
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research work of other researchers is used for making conclusions (Gass, 2018). In this study the
secondary sources are used. While choosing the data sources, it is assured that sources which are
older than 5 years are not chosen. It makes the study applicable to the current development
trends of AI. Further the specific search terms such as challenges of AI, impact of AI on
accounting operations can be used to search the data on search engines.
Ethical considerations
Ethics are important part of any research and are significant in making the research
reliable and accurate. In this study secondary sources are used for the research purpose.
However, there are certain ethical aspects which must be taken into account while selecting any
source relevant to the research. One of the fundamental ethical consideration is that the data must
be collected from the authenticated sources only (Sutton, Holt and Arnold, 2016). The data
sources must be selected on the basis of their reliability and authenticity. It will help to collect
the accurate data.
CONCLUSION
From the report it can be concluded that accountant plays an important role in enhancing
the benefits of AI into the business. Since accountants can give valuable information of business
flows which can help in developing transparent, efficient algorithm for auditing and designing
purpose. Thus, the accounting practices must consider the ethics so that AI can be integrated
effectively with the business needs. It has been also evaluated from the study that the increasing
role of AI on ethics can cause a major threat to the jobs of accounting professionals. AI are not
only capable to perform huge and complex accounting calculations but also to manage the
complete operational activities of the company. Thus, the designing aspect and participation of
the AI in business must be ethically regulated so that its can employed without any threat to
human benefits.
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REFERENCES
Books and Journals
Issa, H., Sun, T. and Vasarhelyi, M.A., 2016. Research ideas for artificial intelligence in
auditing: The formalization of audit and workforce supplementation. Journal of
Emerging Technologies in Accounting. 13(2). pp.1-20.
Kamar, E., Kapoor, A. and Horvitz, E., 2015, September. Identifying and accounting for task-
dependent bias in crowdsourcing. In Third AAAI Conference on Human Computation
and Crowdsourcing.
Kokina, J. and Davenport, T.H., 2017. The emergence of artificial intelligence: How automation
is changing auditing. Journal of Emerging Technologies in Accounting. 14(1). pp.115-
122.
Pannu, A., 2015. Artificial intelligence and its application in different areas. Artificial
Intelligence. 4(10). pp.79-84.
Sutton, S.G., Holt, M. and Arnold, V., 2016. “The reports of my death are greatly
exaggerated”—Artificial intelligence research in accounting. International Journal of
Accounting Information Systems. 22. pp.60-73.
West, J. and Bhattacharya, M., 2016. Intelligent financial fraud detection: a comprehensive
review. Computers & security. 57. pp.47-66.
Online
Gass, J., 2018. AI's Impact On Accounting And Finance. [Online]. Accessed through
<https://www.forbes.com/sites/theyec/2018/09/10/ais-impact-on-accounting-and-
finance/#6466ba76e855>
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