Have you ever imagined how life would be if there were no technological boom and artificial intelligence growth? Pretty dry and monotonous, yeah?
Thanks to Newell and Simon, who designed the first AI program in 1955 and John McCarthy, who finally coined the term " Artificial Intelligence " in 1956. He is also known as the father of AI.
So what is AI?
The boom in technology across numerous industries has meant opportunities for advancement in how professionals do business. Accounting is no exception. Many of the once tedious tasks performed by accountants are now performed by artificial intelligence (AI), allowing professionals to focus on more advisory roles that bring more excellent value to clients.
Artificial intelligence extends a computer’s regular input and output programming (more than just loading Facebook and YouTube). It allows computers to make predictions and adapt how they respond in certain situations -- just like us, but hopefully not enough to take over the planet. In professions that require rote tasks such as accounting and law, AI is replacing human eyes for the better.
AI in Accounting:
Many traditional bookkeeping tasks, which everyone loves so much (not), are already being performed by AI. Accounts payable and receivable AI handles much of the work of initiating payments and matching purchase orders. Automated data entry and data categorisation help accountants more quickly analyse broad financial trends. There’s some incredibly advanced AI at Deloitte, where natural language processing aids in contract interpretation. In health care, AI is used to analyse claims for thousands of accounts, pinpointing potential complexities in advance. Although transaction approval should be left mainly to humans, experts foresee payroll, auditing and tax remittance performed by AI. That’s a lot taken off of our shoulders.
Many firms use artificial intelligence to analyse a large volume of data at high speed, which would not be an easy task for humans to do otherwise manually.
According to a recent survey conducted by the MIT-Boston consulting group, more than 80% of people who use AI programs believe that AI leads to competitive advantage and 79% believe that technology increases the company's productivity. This also leads to improved cost management by companies.
AI also helps businesses improve their efficiency in operations. Accountants who embrace the latest innovations in technology will gain expertise, making them valuable in business process transformations.
Next, we will be coming up with why you need to install AI programs in your accounting process by explaining its benefits in detail.
Until then, you know the drill...
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Next article: AI: An Opportunity, Not a Threat for your Accounting Firm
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