What Is Artificial Intelligence?
Artificial Intelligence(AI) is intelligence demonstrated by machines. It allows them to learn from experience and apply what they know to perform tasks, make adjustments and interpret information. In the finance and accounting industry, it helps professionals by freeing them of their manual tasks.
Role Of Artificial Intelligence In Accounting
The role of Artificial Intelligence in Accounting is to decrease the professional’s workload. It has made a huge impact in accounting and finance. AI systems can do everything from saving time to provide insights. It is how firms stay competitive and attract the next generation of employees and customers.
Benefits Of AI In Accounting
AI accounting software has already eased the workload on professionals by equipping them with tools to manage their tasks efficiently.
Apart from that, it can reduce the time it takes professionals to do a task by 80-90%, allowing them to focus more on other tasks. It also increases the quality of work by reducing human error. By adopting AI in a firm also makes it more attractive to the millennials and Gen Z professionals who grew up with technology. This not only supports their working preferences but also frees them up from tasks that machines are better suited for.
AI can not only provide the firm with the real-time status of financial matters but also give insight that allows them to adjust the course if the data show unfavorable trends. AI can process documents faster using natural language processing and computer vision to make daily reporting possible and inexpensive.
How AI Will Impact Accounting Industry?
Accountancy Age suggested that from the year 2019 to 2024, accounting software would take over the industry. A few of the software which OrangeIQ uses and are believed to take their places as the trending accounting software are:
- QuickBooks
- Xero
- Sage Business Cloud Accounting
The only barrier to AI in accounting is getting the professionals on board with the technology change. According to a study from The Boston Consulting Group and MIT Sloan School of Management, nearly 85% of executives understand that AI will help companies get a competitive edge.
Since the chief executives understand the importance of AI, we only require a change in the mindset of accountants. With AI assistance, the accountants have more time to focus on building relationships with their clients and deliver insight.
In accounting, many internal, corporate, local, state, and federal regulations must be followed. AI-enabled systems help with auditing by monitoring documents against rules and laws and flag those with issues. One of the major advantages of AI is it can quickly analyze huge amounts of data to detect potential frauds or suspicious activity that might have been otherwise missed by humans.
