Introduction
There has been a lot of speculation and worries recently about artificial intelligence and its potential influence. Artificial intelligence (AI) is a comprehensive expression that refers to a technology that enhances computers to mimic human mental power (Hashem & Alqatamin, 2021). AI is frequently employed in banking, medical business, weather forecast, gaming industry, and management. However, the fact is that AI and automation will practically affect all jobs to some degree. Therefore, it is essential to learn if accounting professionals are enthusiastic about the new technologies and looking forward to the opportunity to transits from manual to more value-added duties or whether they are concerned about the potential consequences.
A Definitional Analysis
According to most definitions, AI is software and hardware that can reason, learn, analyze, adapt, and carry out judgment-based tasks in the same manner a human brain can. It is easy to see how AI-powered gadgets might enhance productivity and simplify life by automating everyday chores when combining this expertise with today’s massive data. Al also encompasses using computers to study human intellect; it is an autonomous and developing technology.
Areas in Which Artificial Intelligence Will Impact Accounting
AI is already replacing some accounting operations, and research indicates that automating these processes is a cost-effective option. Income tax preparation, bank reconciliation, payroll, processing, and gathering tasks have been automated, whereby AI takes this automation to another level. There are four areas that have been recognized whereby AI directly influences the accounting profession: new skills, new roles and tasks, training and education, and task displacement (Hassan, 2021). AI is significant as accounts will be able to spend more time interpreting and analyzing outcomes and satisfying their customers’ demands.
Application
A decision support system (DSS) is a computer-based system that has been designed to aid in making decisions. The above structure is a flexible, multipurpose, and collaborative computer system that was established to primarily assist in resolving non-structured management challenges to enhance decision-making (Qasim & Kharbat, 2019). The purpose of a DSS is to develop outcomes and alternatives to make wise choices. DSS applications may be found in various unstructured accounting processes.
Expected Benefits
Business policy execution is one of the top accounting duties an individual may accomplish through AI. Furthermore, AI might decrease the time to find non-compliance concerns in financial data. As to check-in, if expenditures are outside of the rules, AI can analyze credit cards transactions, employee receipts, and trip reservations (Ghosh, 2021). It allows managers to examine faults swiftly, verify that personnel adhere to all standards, and make data input and analysis more efficient. The financial managers may also use AL to track time-consuming and tiresome transactions.
Risks Involved
In accounting, artificial intelligence poses a host of ethical and moral questions. What defines ethical AI practice is a question that must be resolved and made public. The methods by which frauds are perpetrated evolve simultaneously as the applications and activities. New types of white-collar crime are on the rise, directly affecting individuals. Regulations that govern cyber security, data protection, and artificial intelligence will need to be drafted and executed (Kumar Doshi et al., 2020). Standardizing the use of cognitive technology would require policy formation at both the national and international levels. Jobs and workplace relations will be transformed due to the digitization of labor and the rise of the gig economy. Many jobs will become freelance in this situation, and professional hybrids would be in high demand.
Examples of Implementations
In recent years, several nations have competed to perform artificial intelligence research and application, and the drive for its use in academics has become more assertive. Likewise, accounting companies are devoting efforts to developing AI-based service solutions for their diverse customer base. Ernst & Young, Deloitte Touché Tohmatsu Limited, Klynveld Peat Marwick Goerdeler (KPMG) International Limited, and Price water house are the top four firms projected to lead in AL implementation accounting (Bredt, 2019). As accounting has finally caught up with technology, it is now necessary for businesses of all sizes to keep up with technological advances to remain competitive.
Adapting to Disruptions
Disruptive technology is a sort of innovation that alters the way industries, enterprises, and customers operations. It sweeps away the systems or behavior as it has better qualities; several people have referred to AL as a disruptive innovation facilitator. According to Ucoglu (2020), accounts have a 95 percent chance of losing their careers as robots take over data processing crunching. In order to successfully transverse the uncharted region of AI technology disruption, world readiness must be adequately appraised. In the current century, the account job description is ideally different from that of 19th era. More focus will be paid to consulting advisory services, risk management, and company development; thus, accounts will be obliged to specialize and use technology.
Future Research Directions
Because the area is still in its early stages, most of the extant AI accounting focuses on comprehending the concepts, identifying use cases, and determining possible consequences. A few studies have examined AI implementation in certain businesses and nations, but none looks into the factors that influence AI deployment. Furthermore, there is a scarcity of evidence linking AI installation to company performance or efficiency. The need for of such research is explained by the fact that AI applications are still in their early stages (Sahoo Sahoo & Nayak, 2021). More case study research in accounting is needed to improve the AI literature in this field, eventually leading to more AI implementation in accounting.
Public Opinion Toward Artificial Intelligence in Accounting
Public opinion toward artificial intelligence (AI) has become an emerging area of study within AI policy. Nevertheless, the growth of AI ethics as a field of study has increased the number of academic publications on the topic. From a normative perspective, the public is a significant stakeholder in shaping AI deployment and development in the future. Therefore, people should be included in discussions around AI governance. Understanding what people think about AI will help us anticipate future consumer behavior and political contestation. Disparities in public perception of AI are related to trust, with women and people with lower socioeconomic status having low morale while those in East Asia have high morale (Patil & Kulkarni, 2019). Survey data globally show that individuals are aware of AL implementation in accounts; however, they tend to anthropomorphize it as they are scared of losing their jobs.
Conclusion
According to some technology experts, everything that can be converted into data will ultimately be taken over by computers. That leaves imagination and judgment, which are exclusively human areas and often differentiate one organization from another. Like spreadsheets and databases, AI is only valid if humans understand how to utilize it to improve business operations. When exercising human ingenuity and judgment, artificial intelligence cannot replace accountants. Technological, legislative, and economic changes will continue to put the profession’s traditional practices and thinking to the test, which is a good thing. Accountants must be ready to react swiftly to changes in customer demand and establish new and developing organizational performance measures beyond standard financial statements.
References
Bredt, S. (2019). Artificial Intelligence (AI) in the financial sector—Potential and public strategies. Frontiers in Artificial Intelligence, 2, 1-5.
Hashem, F., & Alqatamin, R. (2021). Role of artificial intelligence in enhancing efficiency of accounting information system and non-financial performance of the manufacturing companies. International Business Research, 14(12), 65.
Ghosh, C. (2021). New era of accounting system based on artificial intelligence (AI) – triadic- entry accounting. Account and Financial Management Journal, 06(11), 56.
Hassan, S. (2021). The impact of artificial intelligence on the accounting profession in the tourism sector in Egypt. International Journal of Applied Research, 7(6), 319-328.
Kumar Doshi, H., Balasingam, S., & Arumugam, D. (2020). Artificial intelligence as a paradoxical digital disruptor in the accounting profession: An empirical study amongst accountants. International Journal of Psychosocial Rehabilitation, 24(02), 873-885.
Patil, K., & Kulkarni, M. (2019). Artificial intelligence in financial services: Customer chatbot advisor adoption. International Journal of Innovative Technology and Exploring Engineering, 9(1), 4296-4303.
Qasim, A., & Kharbat, F. (2019). Blockchain technology, business data analytics, and artificial intelligence: Use in the accounting profession and ideas for inclusion into the accounting curriculum. Journal of Emerging Technologies in Accounting, 17(1), 107-117.
Sahoo Sahoo, A., & Nayak, D. (2021). Towards understanding of artificial intelligence in accounting profession. International Journal of Business and Social Science Research, 1-5.
Ucoglu, D. (2020). Effects of artificial intelligence technology on accounting profession and education. Pressacademia, 11(1), 16-21.