Artificial Intelligence in Accounting | Report

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Artificial Intelligence in
Accounting

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Table of Contents
Introduction................................................................................................................ 2
The motivation for the selection of AI.........................................................................2
Use of artificial intelligence in accounting..................................................................3
Privacy and security implications of artificial intelligence..........................................6
Cyber-attacks and risks occur in AI.........................................................................6
Human error/failure.............................................................................................. 7
Trespass............................................................................................................... 7
Software attacks.................................................................................................. 8
Spyware attack.................................................................................................... 8
Social engineering attack..................................................................................... 9
Man in the middle attack...................................................................................... 9
Denial of service attack........................................................................................ 9
Ransomware...................................................................................................... 10
Misuse of artificial intelligence................................................................................. 10
Ways to curb the problems....................................................................................... 12
Risk management plan.......................................................................................... 12
Provide proper training to employees...................................................................12
Use anti-phishing techniques and prevention control...........................................13
Use encryption technique...................................................................................... 13
Use strong passwords........................................................................................... 13
Use backup plans and implement security strategies...........................................13
Pros and cons of artificial intelligence......................................................................14
Pros of AI............................................................................................................... 14
Cons of AI.............................................................................................................. 14
Conclusion................................................................................................................ 15
References............................................................................................................... 16

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Introduction
Artificial intelligence is an advanced technology that has the potential
to extend the abilities of computing to a whole new level. In this generation,
the use of AI technology is enhancing and many business communities are
moving towards AI-based networks due to their potential to enhance
organizational performance (Adadi, & Berrada, 2018). Accounting is the
best example, where artificial intelligence is used to manage and handle
financial operations in an effective manner.
Privacy of data is a serious concern for the accounting sector as the
rate of cyber-crime is enhancing quickly due to which companies are facing
data breach problems. AI uses internet-based servers by which the
criminals can perform hacking activities and access all sensitive data of
accounting firms. The purpose of the report is to evaluate the concept
behind artificial intelligence and evaluate the security issues linked with
artificial intelligence. In this technology term paper various sections will be
covered, for example, motivation for selection of artificial intelligence, use
of artificial intelligence, privacy and security implications of AI, misuses of
AI, ways to curb the problems and many more.
The motivation for the selection of AI
It is observed that the current accounting firms are moving towards
advanced technology like artificial intelligence and it is significant to
understand the benefits and limitations of such technology. The current
research provides a way to evaluate the positive and negative impacts of
artificial intelligence on accounting and review the security attacks that
occur in the artificial intelligence (Brynjolfsson, Rock, & Syverson, 2017).
The major motivation behind the selection of artificial intelligence is to
enhance skills in the area of privacy and security threats and examine the
major factors that lead to privacy issues in the companies. Most of the

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companies are facing cyber-attacks due to the involvement of AI-based
networks and hackers can access the developed systems and gather all
sensitive data. This research will help to control and manage such problems
in accounting and enhance the privacy of data by implementing effective
countermeasures.
Use of artificial intelligence in accounting
In this generation, the uses of IT networks are growing quickly and
accounting firms are now using artificial intelligence for managing financial
operations easily. Accounting firms are adopting and implementing
advanced technologies like artificial intelligence, machine learning, and
many more in order to rationalize their commercial processes. Cellan-Jones,
(2014) reported that utilization of AI-based networks can help accounting
firms to enhance productivity, improve accuracy, and reduce cost due to
which companies are capable to manage organizational performance. With
the numerous advantages, artificial intelligence is utilized progressively for
managerial errands and accounting, subsequent in numerous organizational
changes.
Figure: AI in accounting

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(Source: Cellan-Jones, 2014)
According to Dai, & Vasarhelyi, (2017) using artificial intelligence
accounting firms can develop and implement automated systems and
networks by which they can handle and process accounting operations
easily. It is reported that the information collected by several tax reports
would have certain correctness levels that can be handled and managed
using AI-based networks. From a recent survey, it is determined that 67% of
the participants agreed that the utilization of AI is beneficial for the
accounting firms and helps to enhance organizational performance in a
reliable manner.
Dirican, (2015) provided their opinions and examined that using
artificial intelligence; facts in accounting can be documented and branded
from dissimilar bases in order to manage the accounting head. It is true that
AI-based networks have the capability to predict errors and provide
effective services by which tasks that were completed by accountants
including treating of accounts payable and receivables may be easily
handled. This clue may enhance cost organization by accounting firms and
the involvement of AI networks can help in the development of effective

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decision making approaches. Mainly, AI uses advanced algorithm and
machine learning programs by which accounting firms can convert the
operation into automated systems and reduce the complexity of data
handling easily.
Figure: Accuracy of AI in accounting
(Source: Dirican, 2015)
Djenouri, Khelladi, & Badache, (2020) agreed on this argument and
reported that accountants who hold the advanced AI networks may gain
knowledge by which they can enhance the level of business performance.
Artificial intelligence can deliver data from various sources to the
accounting firms by which the involvement of other data analyzing and
handling systems can be reduced which means AI helps accountants to
reduce operational and data handling costs effectively.
In this modern era, more than 67% of the accounting firms are using
AI-based networks for handling business operations and enhancing the