Will AI replace humans in Accounting?
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Will AI replace humans in Accounting?

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Artificial Intelligence is already part of our everyday lives. Whether we are browsing for a new show on Netflix or posting an invoice to the ledger, AI gives us a helping hand. It’s one of the technologies that we expect will transform accounting, but what about the transformation of accountants?

There has not been such a shakeup in the profession since the launch of Visicalc, the original digital spreadsheet, in the 1970s. Then, finance professionals stepped up their value creation game, taking the efficiencies and insights that digital spreadsheets provided and changing the role for the better.

AI gives us the same historic opportunity to transform the finance function, and the process is well underway. Developments in technology infrastructure, the availability of huge volumes of relevant and properly structured data, and a constant drive to improve efficiency and build value, mean that change is inevitable.

AI is now incorporated into most of the software packages that we use, from Intuit to Oracle. At its simplest, machine learning recognizes and recalls the way we like to treat each transaction. It speeds up bookkeeping and reduces the risk of human error to such a degree that non-financial people can keep reliable accounts.

In planning and analysis, the same machine learning is combined with insights gleaned from deep dives into vast pools of data. Content-aware AI can parse fine detail much faster than humans, and deliver unexpected insights.

There is concern that this technology poses a threat to job roles such as accountants. In reality, it opens the door to a bright new future.

The Silicon Accountant

Machines may be smart, but they need humans. The best models of decision making, planning and analysis, and the most efficient processes, rely upon a hybrid of human and machine. Machines see things that humans cannot: they give us superpowers. We provide the life experience and professional context to complement and interpret their work.

  • Automation of processes can only deliver efficiencies where the process is repetitive and high volume. A great example of effective automation is in anti-money laundering checks, where machine triage of valid addresses and documentation leaves only the minority of more complex and nuanced cases for humans to interpret.
  • Machine learning is only as good as the data from which it learns. Tay, an AI Twitter bot launched by Microsoft in 2016, lasted only 24 hours before it was taken offline for tweeting highly inappropriate content, having learned its behavior from the whole cross-section of unfiltered social media. While that’s a story that still makes the tech community smile, the lesson is serious. Humans add the ethics and the judgment that machines lack.
  • Artificial intelligence relies upon huge volumes of well-structured data to be effective. Humans have a responsibility to police that data for inherent bias or missing context. We must also take the same care over an AI-supported decision as we would over one we researched ourselves, understanding the process (the algorithm) and exercising ethical judgment.

Looking to a bright future

Where does this leave the finance function in the new age of AI? It actually puts us in a much stronger position. A partnership between humans and machines enhances decision-making, shifting the role of the CFO to a value creator within the firm.

There will be disruption along the way. Transformation is a complex process and needs to bring everyone along for the ride, but accountants are versatile people. Many senior finance professionals will have started their careers in the 1980s, adapting and changing throughout the last forty years. They’ve moved from handwritten bookkeeping to ERP systems through the invention of the World Wide Web to a world of IoT data collection, blockchain, and AI.

Throughout all of this time, the finance function has grown in its value and influence in the organization. AI offers us a range of powerful tools that we can harness in our quest to add value and build success.

How are you using AI to support your decision-making and make processes more efficient? Let us know in the comments.

This was the eighth article in my latest series "Frontier Technologies for Finance". You can read the previous ones below. Remember to click subscribe to be notified about future articles.

How are frontier technologies impacting the world of Finance?

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It's time for CFOs to get a grip on cryptoassets

CFO, here are your blockchain use cases

How blockchain is shaking up your financial statement

What CFOs need to know about the Internet of Things

CFOs and the Metaverse: What role should they play?

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Anders Liu-Lindberg ?is the co-founder and a partner at the?Business Partnering Institute ?and owner of the largest?group dedicated to Finance Business Partnering ?on LinkedIn with more than 10,000 members. I have ten years of experience as a business partner at the global transport and logistics company?Maersk . I am the co-author of the book “Create Value as a Finance Business Partner ” and a?long-time Finance Blogger ?on LinkedIn with 67.500+ followers and 150.000+ subscribers to my blog. I am also an advisory board member at?Born Capital ?where I help identify and grow the next big thing in #CFOTech.

AI really helps us in everyday life and can even change things for the better.. if anyone thinks that AI threatens humans is a big mistake, AI will actually bring humans to a better future Anders Liu-Lindberg ??

I think its a fantastic post. Of course AI is a significant part of our lives now.. From the simple predictive texts, to more complex functions. More importantly, how amazing computing and technology has evolved and WE along with it. We are ever more reliant on technology and trusting that it can do more complex tasks autonomously... We were fortunate to be involved with predictive software regarding a development for patient or health care... Certainly AI is a fantastic tool, can save millions of lives, can save so much time and money.. But, I do believe it should always remain a tool for our benefit, and for us to control. Best wishes to you all..

Online accounting is the future. This automation has already started to replace humans in accounting because of their cost effectiveness and time efficiency.

AI really really helps our daily life by changing things for the better ?? if someone says AI will threaten humans? That's a big mistake, AI will make our work easier

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