Impact of Artificial Intelligence on Accounting

This assignment explores the impact of artificial intelligence (AI) on accounting practices. It discusses how AI can automate data entry and reconciliation, eliminate errors, and enable accountants to move towards more advisory roles. The assignment also touches on the benefits of using cloud-based intelligent accounting applications and the importance of staying updated with the latest technological advancements in the field.

ARTIFICIAL
INTELLIGENCE

Table of Contents
1. Artificial intelligence ..................................................................................................................1
2. Use AI in accounting ..................................................................................................................1
3. Are any particular software and hardware vendors provides AI products for accounting..........2
4. Impact of Artificial Intelligence on accounting for long run. .....................................................3
REFERENCES ...............................................................................................................................4

1. Artificial intelligence
Artificial intelligence refers to the ability of a computer program,machine to learn and
think. This techniques has been increasingly used in various function or areas at different level of
a business or operations related to an organisation(Steels and Brooks, 2018). Technology is
developing with a high pace that is encouraging use of machines and robots replacing human
skills or efforts. Artificial intelligence can also be referred as the engineering and science of
creating intelligent machines mainly computer programs which are effective and efficient. It is a
development or making of a computer, robot controlled by computer or a software that can think
in an intelligent manner. The AI systems are improving very quickly and can be very powerful.
Use of Artificial Intelligence
Artificial intelligence ( AI) is used in various fields as mentioned below -
1. Natural language processing – It is possible to communicate with computers that can
understands natural language that humans speaks
2. Gaming – AI plays an important role in various strategic games such as poker, chess, etc
where machines can think of numerous possible outcomes or positions on the basis of
heuristic knowledge.
3. Vision systems – These systems understand, interpret and comprehend visual inputs on a
computer such as Spying aeroplane clicks photographs which are utilised to collect map
of the areas and other important information.
A specific example for Artificial intelligence can be the bot created by ICAEW that
collect data through communications and it is expected to provide increased understanding and
learning in the a new digital platform.
2. Use AI in accounting
Artificial Intelligence is not more commonly used within Accounting and Finance sector
in recording or controlling the need of accounts within companies. Rather this is been used in
certain areas of accounting which is very much powerful and improving in faster speed as well.
This AI is helped in providing and extracting outcome that could be more accurate and will soon
replace the existence of human in certain areas of accountancy. However it is also worth noticing
that AI could never completely replace intelligence of human so it is required to analysis the
strength and weakness. There are certain task or activities which could be done by machines
1

using their Artificial Intelligence like that of account payable and receivable process,
procurement, supplier on boarding, audits, monthly or quarterly closure process, Expense
management and AI chatbots (The Digital Transformation Of Accounting And Finance -
Artificial Intelligence, Robots And Chatbots, 2018).
For example in way of account payable and receivable process there is AI powered
invoice which is making the procedure of invoice easier with learning of accounting codes.
While in procurement many organisations are purchasing raw materials that will be filled up with
use of machines and computers. Robots will be tracking the changes in price among various
suppliers. AI is also used in auditing which is using more of digital technology for the purpose of
security and allowing only authorised person for accessing the files. There will not any
requirement of documentations as auditors will carry on for leveraging up of the digital files.
3. Are any particular software and hardware vendors provides AI products for accounting.
To move fast it is essential to require three things as Talent, Hardware and Software. The
software and Hardware vendor provides AI products for accounting are presented in below
context as are-
1. Google launches Tensorflow, as it has the ability to promote their machine learning
framework and fund it ensures that adoption will go nowhere but support to up. Thus, no
one has ever been fired for choosing Tensorflow.
2. H20, it is the world leading platform that used by the 80000 data scientists in 9000
organizations. It is product that is used by almost 20% of fortune and 500 companies. The
funding was 33.6$ million.
3. Seldon is UK start-up founded by the data scientists. It is full stack open source machine
and provides learning solution for the recommendation engines.
4. Microsoft has developed CNTK as it is cognitive toolkit that trains and evaluate deep
learning algorithms with langauge like C + + and python (Marshall and Lambert, 2018).
It is very fast and scalable. Thus, it is optimized for their cloud platform Azure.
5. Apache software has developed Mahout and it is kind of quick create scalable machine
application. It is mainly for clustering, classification and collaborative filtering.
Furthermore, improved sales from Amazon recommendation engine by 35%.
2

4. Impact of Artificial Intelligence on accounting for long run.
Artificial intelligence system can be powerful and improving quickly. It is kind of
advanced technology that aids to simplifying business operation. Thus, it impact has been present
in below context manner as are-
 It is effective tool that assist to perceives time saving, ,minimizing cost, boosting
productivity and providing better accuracy. AI creates new opportunities and helps to put
major consideration over the cosponsoring compensation (Masum and et.al., 2018.).
 The creation of book keeping is a process of recoding profit and loss, advancement in the
artificial intelligence and applying AI learning technologies to book keeping supports to
automating data entry and reconciliation at times.
 It is effective advancement that helps to eliminate accounting errors, in prior it was
difficult to find and then its lower the liability and enables moving to more advisory role.
 The Artificial Intelligence has revolutionized the world in the field of accounting as it is
also helpful to have control of any sensitive information (Riikkinen and et,al., 2018).
 The procedural changes that Artificial intelligence is bringing cloud that eventually spark
some of the controvert that how to secure the things truly. In this all information can save
in cloud (AI's Impact On Accounting And Finance, 2018.).
 With help of adoption of AI helps to faster the accounting process and improve efficiency
to avoid errors and it supports to truly full fill the promise of automation.
Hence, it can be said that accounting in integral part of the enterprise whether it is on small or big
level. It is essential to have continuous evolution of technical advancement to be updated on the
latest innovation to stay ahead in competition.
3

REFERENCES
Journal & Book
Marshall, T.E. and Lambert, S.L., 2018. Cloud-based intelligent accounting applications:
accounting task automation using IBM watson cognitive computing. Journal of Emerging
Technologies in Accounting. 15(1). pp.199-215.
Masum, A.K and et.al., 2018. Intelligent Human Resource Information System (i-HRIS): A
Holistic Decision Support Framework for HR Excellence. INTERNATIONAL ARAB
JOURNAL OF INFORMATION TECHNOLOGY. 15(1). pp.121-130.
Riikkinen, M., and et,al., 2018. Using artificial intelligence to create value in
insurance. International Journal of Bank Marketing.
Steels, L. and Brooks, R., 2018. The artificial life route to artificial intelligence: Building
embodied, situated agents. Routledge.
Online:
The Digital Transformation of Accounting and Finance - Artificial Intelligence, Robots and
Chatbots. 2018. [Online]. Accessed through:
<https://www.forbes.com/sites/bernardmarr/2018/06/01/the-digital-transformation-of-
accounting-and-finance-artificial-intelligence-robots-and-chatbots/#22b2c9af4ad8>.
AI's Impact On Accounting And Finance. 2018. [Online]. Accessed through:
<https://www.forbes.com/sites/theyec/2018/09/10/ais-impact-on-accounting-and-finance/
#7efb8424e855>.
4