Artificial intelligence is not the future but it is reaching our doorsteps. It is making waves in professions, industries and influencing business on a large scale. The finance and accounting sector is in no way different or immune from AI technology. In fact, the industry is a hot prospect when we look at how AI can change and shape it in the near future.
According to PwC research, the global economic growth provided by AI will reach $15,700,000,000,000 by 2030. Ey survey says more than 70% of leaders in the accounting and finance sector believe that artificial intelligence will influence data-driven decision-making and insights.
With the big four companies having strong words in favour of AI’s influence in the future, we have reached a stage where we can no longer ignore the influence but along with that, there raises a number of questions too.
How far artificial intelligence can influence day-to-day affairs in accounting? How are the companies using AI now and how far have they managed to adapt to the technology? How does the industry benefit from the influence of AI technology? How can experienced accounting professionals use AI for better results?
Questions about AI are getting more and more relevant these days. The monotonous, repetitive bookkeeping tasks taking an immense amount of time and skill will be simply eliminated by AI. The technology will create a clutter-free and much more efficient review of data in a faster and effective way.
What is AI technology?
Computers are getting ready to solve problems on their own. Artificial intelligence can be summed up in those words. Though it sounds simple, the process is enormously expensive and takes a humongous amount of data for these systems to learn. With technology advancing, the process is becoming closer each day.
Machine learning equips the computers to learn from the pattern in data. When we put a large amount of data on a continuous basis for systems to learn, they improve the efficiency of AI. The machine improves the learning, and from this learning, they make data-driven insights and outputs.
How artificial intelligence is changing accounting
Interestingly accounting is one of the few sectors where the process has not evolved much from the beginning. When you ask the question how artificial intelligence is changing accounting Forms may change, tax systems may change but we still need to do bookkeeping. Sometimes it is so painstaking and something that needs a lot of time. So the benefits of AI in accounting can be an industry disruptor , it can take data and review it effectively. They will make data ready-made to consider. In a way, it reduces the work of an accountant by around 70%.
How does the Big four use AI? The example of artificial intelligence in accounting.
EY, associated with Microsoft, implemented AI in the advisory business. They have automated around 200 processes and claim that it saves around 2,000,000 man-hours annually.
Deloitte works partners with Kira systems to improve their document review. Through AI, they work on mergers, investigations, merges, contract management, or leasing arrangements, etc. This helps them tremendously to keep accurate data which is crucial to their business with clients.
Since 2015, KPMG has been tied up with McLaren Applied Technologies, using AI to improve the audit process. They are actively trying to improve their forecasting and auditing with the help of AI, understanding the importance AI can make.
PwC makes use of AI by using it in predictive analytics, cognitive computing, and machine learning. To identify frayed, errors and suspicious transactions, their GL.ai service examines every uploaded transaction, user, and every account.
As you can see the big four is already setting the example of artificial intelligence in accounting.
Let’s have a look at the benefits of AI in accounting
Artificial intelligence can audit the entire accounts of a company. It will naturally bring more clarity and accurate data. Improving the auditing process and outcomes is one of the best ways AI can work in the accounting sector.
Ai can be a useful tool for fraud detection. It analyses every detail and pattern in a document in accordance with laws and rules. Through the analysis, it can flag the possible errors or fraud attempts
Insights and Forecast
With the help of AI, we can get hidden insights that are normally missed by human eyes. It can also deliver the data on time that helps with making quick decisions. artificial intelligence and machine learning together help to forecast strategic operations also. Altogether AI can work efficiently in these areas.
Data input automation
A workforce itself works on data input and review. However, AI can improve the process. It can read, analyze the data without errors, it can flag potential errors, and ask for more data. Working efficiently with data, review, and documentation saves a huge amount of time and makes the outcome accurate and more dependable.
The work speed of AI enables access to quick data with advanced prediction models. Together with the learning process, AI can enhance risk assessment, detection, and prevention.