Artificial intelligence (AI) is changing accounting software in many important and positive ways. However, it’s far from even beginning to replace actual human accounts. In this article, we will discuss how AI has altered accounting software.
Check Data in Real-Time
Thanks to AI, clients’ receipts are converted into a machine-readable format. Following encryption, they are assigned to the proper account. The self-taught system improves its functions with time, which includes expenses, sales, liquidity profiles, and invoice management.
In addition, AI-powered software can use tens of data points to review invoices and receipts. It verifies issuer identity and checks the math. The software handles tasks automatically after it learns how to process each supplier. Finally, its ability to allocate and sort information is constantly improving.
Customers can check expenses and billing data online in real-time. Moreover, they don’t need to input it to see their financial status or wait until the end of the month to do this.
AI can process huge volumes of data at high speeds. Consequently, it helps with auditing by examining keywords and considering specific data while creating reports and risk assessments. It also forwards questionable issues to a human accountant for review.
The Risks of Over-Reliance?
How often have you heard or read that AI will “take your job”? Such fears are hardly a modern-day phenomenon – think the Industrial Revolution in Britain two centuries ago. In recent years, robots have been deployed throughout entertainment venues, workplaces, and residences. It is estimated that AI will take up more than 10% of US jobs in the next decade. What is more, according to Gartner, smart robots will perform a third of all jobs by 2025.
Projections and Reality
According to a 2017 study of 3,000 managers, analysts, and executives, more than four-fifths of respondents stated AI was a priority for their strategy and business. Moreover, two-thirds felt their companies would begin using AI to cut costs within the next five years.
The truth of the matter is that accountants won’t have to worry about competition from AI for quite some time, if ever. Notably, AI applications exist to streamline and automate bookkeeping, while QuickBooks and other accounting software are around 75% automated. However, professionals’ responsibilities and tasks go far beyond providing basic reports and keeping track of receipts. They review their clients’ goals, consult them on tax planning, and discuss key operations. Human controller services will always be needed to make sure companies meet compliance requirements against the backdrop of increasingly complicated regulations and swift industry changes.
These tendencies are especially pronounced where multinationals are concerned. Making sense of business, financial, and tax regulations in several countries is a daunting task. Is AI-equipped to handle the tangled web of guidelines and rules of organizations such as the European Union or the OECD? At present, no one can claim that AI algorithms can resolve these complicated interactions.
Accounting is far from the only industry being affected by the light-speed growth in artificial intelligence solution popularity. The “Holy Grail” of computer science (in the words of Bill Gates) has greatly improved after multiple failed efforts in the past. Moreover, the speed and accuracy of modern-day artificial intelligence are better than ever. However, this does not mean AI will displace human accountants any time soon.