Artificial Intelligence Assignment | Report on Use of AI

Executive Summary:
The purpose of the report is to identify the use of artificial intelligence (AI), its
opportunities and threats in the accounting profession.AI is a technology enabling to
make decisions in critical tasks, previously done by humans. AI in the accounting
profession helps accountants as well as non-accountants in providing efficient and
effective services to the clients. Technology advancement has changed the
accounting job; new software has made the accountant’s job easier and with the
help of these accounting software and word processing tools, technologies have
improved accuracy and reduced the margin of inaccuracy. Artificial intelligence is
an accounting tool for evaluating risk and providing information effectively to
improve the entire effectiveness and efficiency of different accounting tasks. It
helps in organizing data and the documentation of the clients effectively, which
forms the basis for effective interpretation of the financial information that the
clients have provided. The integration of AI in the accounting profession offers
various advantages like risk minimization, time saving, taking business
management to a new stature and obtaining fast and reliable data. However, AI
might take the form of a destructive weapon and the major threat is associated with
costs to be spent in repairing and maintaining AI. Finally, it might lead to loss of jobs
throughout the global economy.

1. Introduction:
Artificial intelligence is powerful system which provides outputs that can be
extremely accurate and replace human efforts. However, they cannot replicate
human intelligence. There is need to recognize the opportunities and threats of this
different form of intelligence, and develop understanding of the best ways for
computers and human to work together. The purpose of this report is to identify the
use of artificial intelligence (AI), its opportunities and threats in the accounting
profession and to provide an overview of the different AI elements to both
accounting and non-accounting professionals AI techniques in the accounting
profession have changed accounting work and efficiency in providing services to the
clients. These techniques such as machine learning are not new, and the speed of
change is fast. Moreover widespread acceptance in business and accounting is still
in early stages (accountantsone.com 2018). To make a positive vision of the future,
there is a need to develop a deep understanding of how artificial intelligence can
solve accounting and business issues, the practical challenges and the skills
accountants require to work alongside intelligent systems.
2. Artificial Intelligence (AI):
As pointed out by Christensen, Nikolaev and Wittenberg‐Moerman (2016), AI
is a technology enabling to make decisions in critical tasks, which the human beings
use to carry out previously. In other words, AI is technology that enables computers
to do decision-based tasks previously done by humans. It shows up in many forms
like machine-based learning that can gradually become better at analysis and
decisions the more it is used and speech-based technology that can understand
different voices and languages (Articlesbase.com 2018).
Advantages:
The advantages of artificial intelligence are the machines are programmed in a
manner that work for longer hours.
The jobs that are monotonous can be conducted with ease through the help of
machines.
Disadvantages:
a. Artificial intelligence results in unemployment and would enable individual to
lose their creative power.
b. The creation of artificial intelligence involves huge amount of cost with
complex machines.

In case of business organizations employing AI, they are able to seek a competitive
advantage, which has helped in enhancing their overall business productivity. When
such computer engineering technology is employed in organizations, it would lead
to greater analytical and decision-oriented calculations. Several accounting firms
are engaged in implementing modern technology such as AI, which has a
probability of dramatically changing nature of the profession of accounting.
Accountants have embraced waves of automation over several years to increase
the efficiency and effectiveness of their work but technology will not be able to
replace the need for expert knowledge and decision-making (Bizfluent 2018). In
fact, earlier generations of intelligent systems have demonstrated the ongoing
influence of human expertise and the limits of machines. Since 1950s, Artificial
intelligence has been an aspiration of computer scientists, and it has seen great
progress in recent years. However systems progressively generate outputs that far
exceed the consistency and accuracy of those produced by humans, on a task-by-
task basis. AI brings many opportunities for accountants in short to medium term, to
increase their efficiency, deliver more value to businesses and provide more insight
(Bls.gov 2018). AI raises opportunities in the longer term, for much more drastic
change, as systems progressively take over decision-making tasks currently done
by humans. The artificial intelligence would fail to create design and lacks creativity
because it does not involve human brain.
It has been seen that several clients have shown interest in the likely opportunities
and threats arising due to AI in a big consulting firm. According to a few clients,
there is threat to the current business models of companies
(Community.accountantsworld.com 2018). On the other hand, the other clients
perceive that AI would help in creating a number of potential opportunities. No one
can deny the fact that AI can become a very useful business enhancement tool in
professions where significant training is essential requirement like In the Accounting
Profession where technical precision and right-minded judgments are needed also
has large scope for AI applications
The application associated with machine learning and AI into the professional
context of the accounting firms is an intriguing aspect. Artificial intelligence makes
the life of human easier and introduces general intelligence and emotions quotient
to the machinery. Cloud solution is used to develop AI that helps in providing
unparalleled advantage, as it helps in maintaining the privacy and security of
confidential data of various users (Journal of Accountancy 2018). Innovation is
propelled with the help of machine learning in accounting profession, which is a
principal edge in the AI context. Paul Bulpitt, head of accounting for Xero UK, spoke
about the potential of AI in the accounting industry at London Tech Week in
Shoreditch. According to him Small businesses always face difficulties with account
codes. Every onefiles things differently and the evidence is the 10,000,000 different