This report intends to explicate threats and opportunities attributed to Artificial Intelligence (AI) to both non-accounting and accounting clients. These clients are stranded in understanding the impacts of AI in respective business models. This will help me present recommendations that takes a stance on whether to embrace AI or not. In so doing, I will be able to dispel my clients’ fear as well as reinforce supporters of AI proponents via a clear explanation of the key aspects of AI for both effective as well as complete comprehension of the connection between adoption of AI and modern business models. Therefore, I will accomplish by presenting a detailed discussion on the following aspects:
Artificial Intelligence is a science as well as technology hinged on such disciplines as computer science, biology, engineering, mathematics and linguistics. The key thrust of AI stays in the development of computer functions connected to human intelligence including learning, reasoning as well as solving problems. Thus, the contribution of 1 or many disciplines leads to an intelligent system.
In his own words, the AI’s founder, John McCarthy, AI remains “science and engineering of developing intelligent machines, predominantly intelligent computer applications/programs”. It remains a means by which a computer-controlled robot, computer, or a software is made to intelligently think, similarly to intelligent human (Quinlan 2014). This is arrived at by studying how human brain thinks as well as how people learn, decide, work as they attempt to solve a problem, and consequently using the outcomes as the basis for developing software and intelligent system alongside. The development of AI commences an intention of establishing identical intelligence in machines that are regarded high in people. The application of Artificial Intelligence in accounting profession is mainly an AI software mimicking the natural human’s intelligence. This software via imitating ways by which people think can learn and perform a range of basic tasks controlled by human beings. AI uses a range of algorithms that permit AI to process huge data volumes under short while. AI is able to acknowledge various trends alongside recommendations on the basis of sported matters in system of accounting of any organization. Though, because these algorithms can process huge data volumes than people, AI remains extremely powerful technique for analysis of financial issues in a range of organization hence being a threat to employment in accounting.
The content is focused at explaining how development of artificial intelligence machines and use in accounting as a field is crucial for organizational growth and development. Accounting firm owners should be informed that Artificial intelligence learning and software automation machine offers a much larger opportunity for their firms to perform more accurate accountancy as compared to its threats. The content of this report is also aimed at informing the management team that algorithms involved with AI is to bring far more benefits to the organization. This is because the artificial intelligence algorithms will help the organization undertake more tasks compared to how it will replace the accountants. The report is also purposed towards explaining to the employees of the firm that it is the synergy of the AI software efficacy as well as their expertise is required for the organization to succeed. This is because success of artificial intelligence and learning machine adoption in the accounting and other fintech platforms depend on employees. According to the case study most the firm employees are still in the dark with regards to benefits of artificial intelligence in accountancy.
The report is further directed to bring these group of employees into the light on the benefits of artificial intelligence. The report is also aiming at explaining to the concerned stakeholders on how the artificial intelligence and learning machine can transform the organization’s accounting process as well as customer services as well as marketing practices. The report lays down an analysis of the system benefits for the organization. The artificial intelligence and learning machine can offer variety of services to the organization which are related to bookkeeping basics. AI can carry out tasks such financial housekeeping as well as Administration CRM tasks, help with coding, data entry and perform repetitive administration jobs which task forces and excel software cannot handle with speed. Based on AI organization transformation capabilities the content is meant to explain to the firm’s stakeholders that AI is able to process as well as perform clients date analysis with speed which no human being is capable of managing. The report will focus on advantages of artificial intelligence in accountancy which is the main concern.
The advancement in technology has greatly altered the accounting profession. It has been argued by some people that access to new software has ease accountant work. It is important that those pursuing accounting profession do so in the modern world context. Modern accountants no longer use papers, pens and calculators when balancing books and verifying accuracy of ledgers.
They currently employ tools that decrease margin of error. The tools include word specialized accounting software alongside processing tools. Hence, can validly argue that technology has intensely improved accounting accuracy and reduced margin of error. While some accountants are still using Microsoft Excel during data entry as well as running ledgers, a great portion of companies will acquire special software. Such software have simplified data entry as well as guaranteeing accurate ledgers alongside financial reports. Businesses have greatly benefited from this because they have increasingly avoided errors that would otherwise lead to uninformed decision making or tax penalties. A reduction in error margin has led to stability of companies in regards to finance hence being afloat.
Advancement in technology has further reduced the requirement for basic training but rather strategic training. Basic accounting training has greatly decreased due to the accounting software implementation in companies. Modern Accountants only require right system and access to computers to undertake tax preparation easily. They are further able to statistically analyze and forecast modeling much efficiently with little strategic training.
The application of the artificial intelligence as indicated above presents a lot of opportunities in accounting field as required which can be vital for development. The content of this report is also aimed at explaining these opportunities which are lowdown as follows:
Automation and Promotion of Efficiency Push: Artificial intelligence machine presents a firm with the ability to improve efficiency of workflows within an organization. It also presents an opportunity for an accounting firm to increase efficiency in system practices which is one of the main goals of the firm. Moreover, AI allows automation which is one of the huge productivity drivers. #1Automation: This is an opportunity that has led to great accounting profession’s transformation. It has culminated to a shift whereby fixed fees are billed as high value virtual controllers rather than as low-paid hourly bookkeeping. This shift has since eliminated the code-accounting that was highly tedious. This is because there will hence be totally zero data entry thereby saving the cost that would otherwise be used to compensate bookkeepers and junior accountants. Automation has prioritized the subsequent day’s tasks whereas individual are in deep sleep. This, therefore, offers both managers and accountants effective insights about their pool of clients. In this sense, automation will allow managers and accountants to undertake effective redefinition of respective roles particularly, as bookkeepers and accountants in a way which is increasingly lucrative for them, and valuable to corresponding clients.
Automation shall further culminate in prosperous as well as bright for accountants who will adopt and embrace the technology. For example, automation will make it very easy to do accounting work as bookkeeping data entry and historical recordkeeping will have been extinguished via automation and cloud computing ecosystem. Moreover, automation has since seen manually keying bills alongside paper checks printing being in extinction. This is because accountants and managers have swop to cloud accounting apps which have provided better efficiencies hence cutting down the time they spend on clients.
The workload attached to bookkeeping shall have been cut to half via automation of about 80-90% of transactions by clients. This automaton will save money for the firm and enhance efficiencies. Further, AI will save accountants, in the future, from the cost and time of configuration. Both business owners and accountants will come to expect accounting software as well as services which use AI automaton for the delivery of better experience.
Allows Deep Diving Into the Clients Data: Algorithms used to build AI never sleeps or takes any breaks thus able to constantly as well as tirelessly process customer data, perform data analysis and deconstruction of clients accounting data without any rest (Spathis and Ananiadis 2005). This presents the organization with an opportunity to dig deeper into the clients’ data.
Enhancement of Marketing Trough Real Time Analysis: This another opportunity which the content of the report will lay focus and analyze in relation to the current situation in the firm. By elaborating on this opportunity, all stakeholders in the firm will be able to understand that AI algorithms can perform more functions in an accountancy above basic bookkeeping basics. Artificial intelligence can be used to conduct customer analysis enabling the firm to identify the ideal clients.
Machine Learning (ML): This has provided a lucrative opportunity for recognizing trends and forecast outcomes accurately. The adoption of ML in the accounting software, accountants’ professionals shall enhance respective efficiencies greatly. They will hence provide more to corresponding clients after the software firms integrate artificial intelligence into respective application hence automatically outlining trends and anomalies. Accountants will apply machine learning to applications of general ledger hence efficiently analyzing historical and awaiting transactions. This will lead to effective prediction of upcoming cash-flows thus removing spreadsheets. Machine learning shall additionally, be utilized in analyzing trends in sales and suggesting purchase that uphold optimal inventory levels.
While artificial intelligence can be crucial in accountancy the report will also cover key threats which the management should take into consideration. The AI is not flexible after programing and can only work on very specific sets of data. AI only presents problems solution on mathematical basis which cannot solve every organizational problem. The use of Artificial Intelligence will inevitably lead to massive disruptive changes in the business and accounting models in the short term. This is because the organization must incur extra cost when setting up the machine learning and automation. Another threat among the junior accountants and bookkeepers for using the use of Artificial Intelligence is the fear of job loss especially for those doing basic data entry alongside bookkeeping. This is because this group of workers must be re-skilled which many organization may not do but to retrench since it will attract additional cost. AI also has a threat of creating an unrelenting competitive advantage that may outstrips corporation that do not adopt it. Thus organization must compete recent AI to survive in the industry. This competition implies extra costs to organization thereby affecting their short term profitability.
The report is intended for both non-accountant and accountants. This is because the accounting firms’ boards often include both non-accounting and accountants’ professionals. Based on the case study, a great number of my clients remain accounting practitioners with inevitable interests in potential threats and opportunities attributable to AI. The Audience feel that AI might threaten respective business models whereas others feel that it presents lucrative opportunities for better delivery of quality services.
I will specifically make a decision or whether or not to adopt AI in accounting practices. AI has become a reality not only to accounting profession but also other professions. Thus, both non-accounting and accounting professionals have to make critical decisions regarding AI. This is because AI’s adoption automatically trigger short run disruptive alterations in business models. Therefore, the threats and opportunities of AI’s adoption have to be probed and balanced against one another to reach an effective decision.
AI’s impacts on both business and accounting models have to be fathomed clearly to enhance process of making decision. The reason being, workers and departments shall be downsized due to automation of such basic works as bookkeeping alongside data entry because of machine learning besides automation thanks to AI. The firm has to make a decision on varying employees and departments prior to AI adoption. Also, organization must make a decision on the particular essential changes necessary to be effected in their business models alongside their effects on respective organizational cost and profitability.
The core decision that manager must make is whether or to embrace AI in operations of accounting. Managers will use this report to reach this decision by looking at the threats and opportunities attributable to AI adoption. However, as explicated, firms shall make decisions that engage all stakeholders (Baldwin, Brown and Trinkle 2006). This report, therefore, provides detailed discussion that enlighten all stakeholders to understand AI’s benefits to their firms and hence make them implement AI in their businesses. Such decision anchor the comprehension of entire AI’s system and financial needs alongside company status.
Information on AI meaning, opportunities and threats of AI to business and accounting models and how technology has changed work of accounting recently will be helpful info for my clients to reach desired decisions. The details presented in this report remains core source of info for making decisions. As outlined above, the manager will make decision on the basis of both AI effects on the ordinary operation of the organization, how the firm is able to alter based on the advancement in technology linked to AI. Further, the core decisions shall be drawn financial info, whereby ultimate decision shall be anchored on AI implementation cost against AI benefits (Dustin, Garrett and Gauf 2009). The manager shall perceive the organization’s previous performance and connect it the economic benefits attributable to economic benefits. Besides info availed in report, the managers shall consult a range of dealing in the AI’s implementation. This will help them arrive at a decision anchored on benefits, opportunities, customer needs, threats and cost.
Accounting software
AI algorithms
AI software
Artificial Intelligence
Artificial intelligence machine learning
Automation
Data sets
Machine Learning
Conclusion
Artificial Intelligence will culminate in disruptive changes in both business and accounting models. Nevertheless, this shall solely be in the short term. The advantages and benefits shall supersede the cost and disadvantages of AI after it is set up effectively. Thus the fears by opponents that AI will lead to disruptive changes is allayed when a business adopts it. Moreover, the machine learning shall replace tasks that bookkeepers and junior accountants current do hence cost-saving. Nevertheless, this shall be a great opportunity for the organization to re-skill the junior staff making them increasingly productive and efficient instead of being retrenched. This is because the juniors staff will still be require to make judgement. This, therefore, dispels the fears that Artificial Intelligence shall culminate in job losses. Indeed, automation will help accountants with required data for effective and faster decision (Rich and Waters 2014).
Machine learning will additionally avail provide accounting professionals unparalleled insights into their client base. Accountants will henceforth spot patterns and trends among respective clients’ base and offer quality advice as well as recommendations (Rezaee et al. 2002). Therefore, automation alongside machine learning makes accounting professionals to be efficient thereby use spare time to converse with clients about reports and review the payroll as well as payables. They will have better opportunity to offer quality advisory service thereby helping clients to increasingly feel in control of respective finances and help in solidification of accountants as trusted advisors to their respective businesses (Cohen and Feigenbaum 2014).
Despite the AI implementation causing disruptive changes to business models in the short run, it shall culminate in escalated productivity. Artificial Intelligence brings a range of opportunities that shall be implemented for increased efficiency. The Artificial Intelligence shall assist the accountants to be more accurate when analyzing data as well as allow teamwork effectively. Accounting organization shall not be compelled to harbor experienced work overloads alongside lateness since the adoption of AI shall permit speedy operations. With such apparent benefits attributable to AI, these firms shall establish effective client-organization rapport since most task shall be performed in time with increased transparency and accuracy.
References
Baldwin, A.A., Brown, C.E. and Trinkle, B.S., 2006. Opportunities for artificial intelligence development in the accounting domain: the case for auditing. Intelligent Systems in Accounting, Finance and Management, 14(3), pp.77-86.
Brown, A.B. and Hellerstein, J.L., 2005, June. Reducing the cost of it operations-is automation always the answer?. In HotOS.
Brown, A.B. and Hellerstein, J.L., 2005, June. Reducing the cost of it operations-is automation always the answer?. In HotOS.
Cohen, P.R. and Feigenbaum, E.A. eds., 2014. The handbook of artificial intelligence (Vol. 3). Butterworth-Heinemann.
Dustin, E., Garrett, T. and Gauf, B., 2009. Implementing automated software testing: How to save time and lower costs while raising quality. Pearson Education.
Quinlan, J.R., 2014. C4. 5: programs for machine learning. Elsevier.
Rezaee, Z., Sharbatoghlie, A., Elam, R. and McMickle, P.L., 2002. Continuous auditing: Building automated auditing capability. Auditing: A Journal of Practice & Theory, 21(1), pp.147-163.
Rich, C. and Waters, R.C. eds., 2014. Readings in artificial intelligence and software engineering. Morgan Kaufmann.
Spathis, C. and Ananiadis, J., 2005. Assessing the benefits of using an enterprise system in accounting information and management. Journal of Enterprise Information Management, 18(2), pp.195-210.
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