You have your own bot now, guys! And it’s smart. It learns which data patterns are normal; detects irregularities; predicts possible fraudulent behavior; and automatically alerts users.
So, the news is that Ai is now entering accounting too, and tech-savvy accountants don’t have to burn their hearts or fret on being left behind in the evolution race! AI and machine learning are already making smart businesses and their managers and leaders get accurate financial insights quickly, in real time, helping them expand their financial understanding, and sharpen decision-making.
So, if Facebook uses AI in photo-tagging, and Uber deploys AI to predict arrival times; smart accountants and big accounting firms are deploying machine intelligence to automate everything - from simple data entry, and basic accounts preparation, to posting journal entries, and making ledgers, correcting posting and analysis errors – even complex tasks like product costing, receivables and payables management and forex risk management.
The fact is that artificial intelligence and machine learning are set to become even more ubiquitous in managerial accounting - particularly in global firms. Organizations having access to advanced cloud, blockchain and communication technologies are best poised to leverage the true power of artificial intelligence and machine learning.
Banks, insurers, actuarists and accounting firms - all segments of the global financial value chain are gradually adopting artificial intelligence and machine learning. For many in business, the pace is actually a little too fast for comfort and making them fear for their jobs – a fear, that looks a little unreasonable to many experts.
The fact is that large accounting firms have long been using AI software in posting, analysis, error correction and fraud detection. KPMG have been using AI in their auditing processes since 2015, using predictive analysis to gather evidence and produce data reports, as well as using AI to automate accounting systems and financial reporting.
A host of exciting AI and ML platforms like Xero, Fluidly and Intuit have emerged for accountants that utilize Artificial Intelligence to create machine learning-based predictive models to forecast revenues and cash flow - removing the need for manually complex and time-consuming task of modelling.
Artificial Intelligence has the proven potential of making accounting more transparent, accurate, honest, law-abiding, clean and efficient while reducing mistakes and possibilities of frauds. It is an opportunity for accountants become more important strategic business advisers for their organizations and clients.
But the big question to ask is: are accountants ready to harness artificial intelligence?