HOW ACCOUNTING FIRMS USE AI

This page goes into detail on how Ai is actually used in an Accounting workplace.

Many Accountancy businesses are using AI systems within their day to day tasks, which is making many people afraid they may lose their jobs and become made redundant. This however is not believed to be the case, in fact the main tasks AI will be handling is the monotonous, time consuming ones giving the humans the freedom to target and complete higher value tasks such as tax planning, advising and counselling.

One important aspect the AI can be used for is its successful ability to detect fraud. Ai has the skills to learn normal data patterns and from that alone it can detect differences which may raise red flags for fraudulent behaviour. Once it has managed to recognise there is an issue it will automatically alert the human worker that actions need to be taken. This is a great tool for cracking down on security measures where necessary.

Larger accountancy companies have long been using AI software. KPMG have been using AI in their auditing processes since 2015, using predictive analysis to gather evidence and produce data reports, as well as using AI to automate accounting systems and financial reporting. (Citation needed)

Many smaller accountants use services such as Fluidly which utilise Artificial Intelligence to create machine learning-based predictive models to forecast revenues and cash flow. AI can analyse far larger quantities of data better than humans and can also detect very complex or subtle patterns. This allows them to make more precise predictions in more complicated environments. Machine learning also learns from the errors it makes in its predictions, meaning the forecast becomes increasingly accurate. (Citation needed)

To conclude, Artificial Intelligence in Accounting gives opportunities for the human accountants to target more important tasks and therefore making themselves a more valuable member of the workforce. Businesses such as Accountants will also be looking at new ways to improve their efficiency and reduce the risk of making mistakes especially when it comes to dealing with another businesses financial stability.