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Forum > What You Need to Know About AI in Accounting
What You Need to Know About AI in Accounting
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Christian
64 posts
Nov 28, 2022
10:36 PM
Artificial intelligence (AI) is already transforming the accounting industry, and its use is expected to increase in the coming years. What does this mean for accounting professionals looking to advance professionally? Industry experts don't expect technology to replace humans anytime soon, but firms that provide accounting and other financial services will need to adapt to stay competitive.


Artificial Intelligence in Accounting allows computers to take over decision-based tasks that were previously done by humans. There are various forms of AI, such as machine learning, which is gaining better analytical and decision-making capabilities as it is used. Another example of AI use is voice-based technology, which understands different voices and languages.

Technology, including AI, has entered every industry. In accounting, it reduces the need for manual data entry and improves speed, accuracy and quality. AI is already being used to process and analyze large amounts of data much faster than an individual or team of employees could.

Preparing for the future

Accounting professionals can expect technology to take over some of their tasks. Those who embrace the resulting changes can look forward to better opportunities for advancement than those who do not. Embracing these changes requires building a solid foundation in data management and understanding the new technologies.

Companies of all types are in various stages of implementing AI. In a survey by the MIT-Boston Consulting Group, respondents said the biggest barriers to implementing the technology include lack of access to the data needed to train the algorithms, lack of understanding of the benefits to the business, lack of talent, competing investment priorities, security concerns and lack of executive interest.

Nearly 85% of the more than 3,000 executives surveyed in the poll said they expected to gain a competitive advantage from using AI. Yet only one in 20, or 5%, of companies reported using AI extensively, and fewer than 39% of companies said they had an AI strategy in place.

The MIT-Boston Consulting Group survey also includes findings relevant to accounting professionals. 84% of respondents agreed that accounting professionals will need to change their existing skills in response to AI in the workforce. In addition, 79% expect business productivity to improve, and 47% anticipate staff reductions. Thirty-one percent of respondents fear AI will take over some of their jobs, and 70% hope AI will take over some of their jobs.

AI allows humans to focus on complex tasks

Business.com reports that using AI to complete certain accounting tasks, including data entry and organization, would free up accountants' time so they could focus on other important tasks, such as preparing clients for large financial transactions, including IPOs.

Even as more administrative tasks are automated, accountants can strengthen their position as trusted advisors to their clients by offering additional services that are in demand, such as cash flow advice, according to a Forbes article.

AI will continue to change the way accounting and other financial services are delivered, making humans obsolete in completing some tasks. Forward-thinking accounting professionals who anticipate and prepare for these changes can play an important role in implementing them.


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