AI IN ACCOUNTING AND FINANCE

This page looks at how AI systems can be used to enhance the environment for those working in Accounting and Finance based industrys.

“As artificial intelligence has done for many industries, it’s making a significant impact in the world of Accounting and Finance. From saving time and money and providing insights, AI-enabled systems for accounting and finance are the way finance professionals and their firms will stay competitive and attract the next generation as employees and customers”. (Bernard Marr, 2020)

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AI plays a role in portfolio management, trading, and portfolio risk management. Portfolio management is something that uses AI to improve facilitating fundamental analysis to process quantitative data, images or textual data and generate new investment strategies. AI helps produce better asset returns and risk estimates and solves portfolio optimisation problems. All these result in AI achieving portfolios with better performances compared to traditional approaches.The use of AI has also been integrated in different financial softwares; such as, FreshBooks, Xero, Sage, Kashflow, and more.

AI techniques that learn and evolve using data can help in monitoring risk. Specifically, AI approaches can extract information from various sources of structured or unstructured data more efficiently and produce more accurate forecasts of bankruptcy and credit risk, market volatility, macroeconomic trends, financial crises and more than traditional techniques. AI also assists risk managers in the validation and back-testing of risk models. AI techniques have also started gaining popularity in new practices, such as robo-advising, which is where computer programs provide investment advice tailored to the needs and preferences of investors.

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