The impact of artificial intelligence on accounting

​The current world is witnessing some of the most revolutionary technological evolutions which are changing the world and the way of our working. We are blessed to see these future technologies growing and being modified in our era.

​Some of these innovations are still in their infant stage while others have stretched their implementation to a number of fields. Apart from cloud computing and machine learning, the concept of AI is being considered as one of the benchmarks in the technological field and we are going to discuss its impact on the accountants and accounting operations.

But before getting into the discussion of how the AI will affect the accounting, let’s discuss the basics of AI first.
Artificial Intelligence is simply the ability of a machine and software to show cognitive intelligence that results in the enhancement of operational efficiencies of many industries. Although there has been a lot of moral issues raised since the introduction of the AI because now machines can think and learn like human, overall, the AI has brought revolutionary changes in various fields and sectors.

All the business areas which require a lot of precision, accuracy and analytical decision making can be managed with the help of AI. Apart from logistics, sales and marketing, the AI will also have a great impact on accounting as well.
The accounting industry has been morphed from manual entry to cloud accounting and now it will be shaped to perfection with the help of AI.
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So let’s look at how the accounting industry will be impacted by the most promising technology of the current era which is AI.

How AI and cloud computing will work together?

The cloud computing has seen a tremendous growth in the accounting industry during a short span of time. Nowadays, most of the businesses are using the cloud computing solution to make their life easier and in the near future, people will start using the combination of AI and cloud computing for surpassing all the current achievement of technology in the field of accounting.
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The cloud computing and the AI will be used together for the computing massive amount of data in a very short period of time. In addition to this, the AI will also help the accountants finding patterns and anomalies which will result in more informative and accurate decisions. 

How AI will affect accounting directly?

There is always an enormous amount of data in front of accountants and they need to go through all of them in order to complete their task but with the introduction of the AI, all the redundant and mundane tasks will be wiped out from the accountant’s daily operations. For example, the AI can help in analysing a large amount of data, interpret contracts or deeds, extract key terms and then analyse them and solve problems which earlier looked impossible to solve.
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When it comes to data categorization then the AI can sift through information and put them in the appropriate accounts because the AI has been designed in such a way that it understands the categories and that’s how it will be able to categorize the data in the right way. 

Will AI affect the accountant’s job?

Yes, it is true that the AI will surely affect the accountant’s job, but not on a large scale. Since the AI will be able to do most of the tasks which a normal human can do, therefore, the lower-level position of the accountants will be affected for sure, but there is no truth in the rumours that AI will completely eliminate the role of accountants.

Instead of replacing the accountant’s job, the AI will make them more accurate, fast and reliable. And if you are still worried about your role as an accountant in the future because of the introduction of the AI then you need to know that the employment of accountants is expected to grow by 10% through 2026.
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And since all the mundane tasks will be eliminated for the accountants because of the AI, they will be able to focus more on their expertise and that’s how they are going to stay productive even with the introduction of the AI in their industry.

How accountants can prepare themselves for the AI?

​With the introduction of the AI in the accounting industry in the near future, most of the companies will start looking for accountants with diverse skills. All those accountants who will be more familiar of the technology will be preferred more than those who have chosen to stay away from it. If an accountant will be having a strong background in the data management then it will be a big plus point for them. Other than this, you will also need to have the following skills as an accountant:-

• Expertise in Excel
• Basic skills in Microsoft Visual Basics
• Basic knowledge of Big Data Analytics
• Experience of ERP
• Knowing Hyperion

So if you are an accountant and looking to sustain your business or job, then instead of considering AI as your enemy you need to find ways to collaborate through it. If you are not willing to change according to the upcoming AI trends, then your job as an accountant might be at risk because with the evolution of the technology in the accounting industry, you will have to become smarter and adaptive in terms of the technological changes.