Artificial Intelligence (AI) is the ability of a digital computer or computer-controlled robot to perform tasks associated with intelligence. It enables computers to perform decision-based tasks previously left to humans and shows-up in multiple forms, including,machine-based learning and speech-based technology.

There is a lot of sound about AI and its impact on various industries and is believed that AI make millions of workforce obsolete by replacing the need of humans in performing mechanical tasks and solving complex issues involving decision making. It is also anticipated that AI’s role in the field of research and medical science will be magnificent and is sure to being a whole new revolution in these fields apart from others. Accountants are also not left untouched and AI is believed to make the accountants obsolete too by not only performing accounting and auditing in a scientific and seamless manner, but also analyse data, summarize it and suggest solutions just like humans.

But will AI leverage accountant’s ability to perform tasks or entire replace them?

For this, let us have a look at the current and potential applications of AI in accounting industry.

The applications of AI seem limitless and will eventually impact almost every aspect of our personal and professional lives. Humans won’t be replaced by robots next year or even the next decade. In the near future, AI will support accounting through these three key functions:

• Data Analyzation
• Automation of Tasks
• Improved Security

AI will give professionals more opportunity as this profession is going to become more interesting as the repetitive tasks will shift to machines. There will be changes, but those changes won’t completely eliminate the need for human accountants, they will just alter their contributions. Further, it will also impact the various factors that are used to deliver services in our industry. Some of them are:

Speed: With vast processing power, AI gets work done quickly. Financial reports will take a fraction of the time to produce and share, giving greater insight into financial performance. Even better, this information will be based on real-time activities.

Greater Accuracy: Mistakes slip into the accounting process one way or another. Errors typically lead to massive headaches and makes data incorrect until the errors are found and fixed. AI has the potential to take issues like this, apply machine-based learning to discern an answer, rectify them, or escalate them to a human reviewer.

Fraud Prevention: With AI’s ability to quickly process, analyze and understand data, it stands to reason that fraud prevention efforts will improve. It could identify potential internal theft as it happens and flag it for review (or investigate / interrogate on its own). It could verify the authenticity of payment recipients before the money goes out-the-door.

Communications: You have a presentation coming up. You turn to your voice-activated virtual assistant, and it provides you with not only the best data points to share but also tips on how to present the data to increase interest. How’s that for supporting communications? And beyond applications like the above, AI will let you choose what type of communications work for you – a chatbot, voice interface, and more.

Advisory Level Services: With AI handling more of the transactional side of work, this frees up the accountant to work on an advisory level. Conversations will move from “Don’t forget to authorize that payment” to “Let’s talk about your pricing strategy, improvements, and the impact on your financial performance.” Your accountant moves to a trusted partner and adviser, or even virtual CFO – a professional guiding the financial security and performance of your company.It is predicted that with the combination of AI and accounting, businesses will be the ultimate winner.

Artificial intelligence systems can be very powerful and are improving quickly. They provide outputs that can be extremely accurate, replacing and in some cases, far superseding human efforts. However, they do not replicate human intelligence. We need to recognize the strengths and limits of this different form of intelligence and build understanding of the best ways for humans and computers to work together.

Artificial intelligence isn’t coming. It’s already here.

It is no small secret that accounting is the midst of a radical transformation and evolution. Additionally, regulatory and reporting updates related to accounting and convergence of national GAAP and IFRS, continue to create opportunities for disruption and change in accounting. At the core of the concept, AI is simply the utilization and training of technology to help automate processes, organize large amounts of data, and assist users by responding to customized (non-programmed) queries in real time. One example of how this might assist accountants in the marketplace starting today is that we will be freed-up to perform higher level tasks. Leveraging intelligent research systems, which are accessible and scalable in a cost-effective manner for virtually firms of every size, enables staff and senior lever accountants to find answers to research and client questions in real time.

Even more pertinent for accounting is the fact that artificial intelligence is already being used by leading firms, including the Big 4 accounting firms and major financial firms such as JP Morgan. With apps, cloud based systems, decentralized computing networks, and industrial systems increasingly integrated with technology applications, the reality is that accountants must be able to manage, analyze, and report larger amounts of information in a real-time manner. Thinking about AI and automation as powerful tools instead of existential threats allows accountants to embrace new opportunities, evolve alongside their organizations, and elevate the value delivered by professional accountants.

Accounting has traditionally been a profession that, while highly regarded and respected as quantitative experts, has been focused on historical performance and only been applicable for a small subset of external users. Artificial intelligence systems can be very powerful and are improving quickly. They provide outputs that can be extremely accurate, replacing and in some cases, far superseding human efforts. However, they do not replicate human intelligence. We need to recognize the strengths and limits of this different form of intelligence and build understanding of the best ways for humans and computers to work together.

What AI is doing is sort of a more sophisticated version of what spreadsheets do. The more analytic and decision-oriented computations, at least for the next 20 to 30 years, will still require humans.