To understand how AI is changing accounting procedures, let’s look at updated document review processes at EY and Deloitte. In the first episode of Thomson Reuters Backstage, Amanda Trent, Segment Marketing Lead in the Thomson Reuters Digital Demand Center, explores the impact of artificial intelligence (AI) and all it has to offer tax professionals.. What are some of the key trends for AI in tax? “Artificial intelligence [AI] has potential impacts similar to other forms of technology based disruption, but it also has additional characteristics that need to be considered separately,” says Dr Mathew Donald FCPA, an academic who consults widely on change management and business strategy. How will that affect the accounting profession? “The most limiting factor for AI will be consumer acceptance, and it will only be adopted once it can be shown to be superior in function to the human equivalent, as well as reliable and safe,” Donald says. For the accounting profession, AI raises a host of challenges. How will it change the accounting industry? Young Entrepreneur Council (YEC) is an invitation-only, fee-based organization comprised of the world's most successful entrepreneurs 45 and younger. Accounts payable and receivable AI handles much of the work of initiating payments and matching purchase orders. Read more now. In professions that require rote tasks such as accounting and law, AI is replacing human eyes for the better. Because AI can do some of the tasks that humans normally do, some lower-level positions could be affected; however, AI will not replace accountants. Although transaction approval should be largely left to humans, experts foresee payroll, auditing and tax remittance. The result for EY and Deloitte, among others, is a more rapid conclusion to the legal process. “The game changer will be if 5G can provide the bandwidth and latencies required to move the computational power outside vehicles,” he says, “but there are a lot of challenges to address before we get to that.”. As revealed in a Forbes piece last year, AI is now doing the job of looking through convoluted contracts. These people may prefer to work from home, or under new arrangements and for higher pay – and they will be making such demands at the same time that the less skilled are being replaced by AI. That’s a lot taken off of our shoulders. Leave the fundamentalism at home and make room for AI. Firms that follow last year’s approach will quickly find themselves trailing behind those that innovate with AI. AI provides a great scope for developing current products and services and also provides an opportunity to develop these existing products in the portfolio. The future of accounting is varied and bright. While there are significant problems, there are also many new opportunities for finance professionals. The transition presents challenges, so how will businesses and managers respond? What are the positives and negatives of AI’s rise in the accounting industry? Most accountants didn’t learn about AI during professional training, so partaking in company-wide workshops will help prepare them for the future. Why creativity thrives during times of constraint, The accountants' guide to understanding RPA and AI, How technology and data are transforming accounting and audit. The impact of artificial intelligence on our profession. A I is is already being applied in areas as varied as driverless cars, home energy systems and investment portfolio management. Automated data entry and data categorization, help accountants more quickly analyze broad financial trends. Managers will have to work much harder to attract and retain staff in this situation.”. “There are many potential new areas for finance specialists who are willing to get involved, but they need to start now. you may be wondering what is the future of Accounting profession and the future outlook of accountancy given the recent disruptions being witnessed in various professions and occupations. Learn more at yec.co. We have detected that JavaScript is disabled on your browser. Donald believes that this is an area where the profession should be taking the initiative in the immediate future, rather than allowing others to establish themselves as experts on the advisory element in AI. Dealing with more data As the IoT brings in data from multiple sources, be it transactional data or data from cloud ERPs and accounting platforms, there will be an even greater influx of available data which will need to be incorporated into reporting systems. 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