- Vidit Agarwal
- December 11, 2021
Artificial Intelligence or AI is one of the most progressive technological tools that is transforming everything it touches. It is present everywhere, right from education, home automation to healthcare services and now also in businesses. This tool is used by the world’s most influential businesses like Facebook, Amazon and Google.
What is Artificial Intelligence (AI)?
AI can be described as a software that performs mind mimicking functions like learning and problem-solving. Machine learning software identifies and learns from past patterns, this means the software will keep on getting better with time and that’s its real beauty.
Applications of AI in the Accounting Industry
AI is a tool that brings numerous opportunities for accountants and bookkeepers. Some ways in which AI is already transforming the Accounting industry are mentioned below:
Streamlining processes
AI can interpret and process data with increasing accuracy and speed. Many time-consuming accountancy tasks can be done quickly by integrating AI. For example, it can identify and explain transactions from your bank feeds. This saves a lot of time which can now be utilised in other areas, such as improving business strategy and service quality.
Reduced frauds and non-compliances
AI can learn to identify patterns related to potential fraud and highlight them for review. Accountants still play a vital role in deciding the actions that need to be taken but now they don’t have to analyse long lists of data to spot potential problems and errors.
Improving services
AI allows you to reclaim more hours that you were previously spending on entering data and balancing books. You can use this time to get a better understanding of other business operations that can add extra value and give your business an edge over the competition.
Future of AI and Accountancy
Automating tasks like data entry can give you more time and opportunities to focus on diversifying your services and improving customer satisfaction. You will have more time to identify the latest trends in the industry and take advantage of them. Looking at all the benefits that AI is already offering in the initial stages of its implementation, one thing is clear that “AI is here to stay”. The early you adopt this tool, the more you will benefit from it.
Will AI replace humans?
It is a very common misconception that many have in their minds. Although the implementation of AI in the accounting industry is surely going to increase in the future, but it won't eliminate the need for human intelligence. Human presence will always be needed to interpret the reports produced by AI. The key to maximising the efficiency of the accounting process is pairing human with AI and allowing them to work in the areas they are best skilled at.
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