Artificial Intelligence (AI) has become a part of everyday life and work. We all are knowing or unknowingly interact with AI almost every day. Today, AI is a household name and sometimes even a household presence, for example (hi, Alexa!). AI is enabling rapid innovation that is transforming the way work is done and how services are delivered, for example, generative AI tools such as ChatGPT are having an intense impact. Given the many potentials and the benefits it holds for people, Organizations, and society Investment in AI continues to grow across all sectors. We will highlight here how AI can impact our Accounting Industry.
As per the report published recently, “An Early Look at the Labor Market Impact Potential of Large Language Models“ Accountants, Auditors, and Tax preparers are the occupation with the highest exposure to AI technology among many. However, the uses of AI also pose risks and challenges, raising concerns about whether AI systems are worthy of trust. Following are the few challenges for which it will take time to trust AI in the accounting industry.
- AI can be generating Inaccurate and outdated information.
- Misinterpretation of the law/provision.
- Cybersecurity and data risk for accounting firms.
- Implementing AI can be the expensive process.
- There is a risk with rule-based and manual intervention process.
Though risks can’t be undone, The benefits of AI to the accounting industry is widespread. AI could be the technology that drives your firm into the future with a mindset that replaces routine work with strategic thinking, reducing errors previously made by humans, reducing time on decision making, ability to process large and complex data sets quickly, saving over time from the replacement of resources at the firm and providing many accountings professional detailed data about their clients and accountants that can be used to provide a experts advice.
The research study says that the most popular cloud-based accounting solutions available in the market today such as Quick book online, SageOne and Xero evaluates the accuracy of their AI engines to automatically recognize transactions coming in from the bank feeds and generate the correct account head without any user intervention.
So, the evidence is clear that AI is the future of accounting. It is an incredibly value tool that every firm should leverage in future.
Credits:
Swadhin
Business Services Team
