As an accountant, you are probably aware of the general impact of technology on the accounting industry from firm leaders and publications. However, you may wonder how accountants can use artificial intelligence (AI) in their careers? Our exceptional accounting team at GCS Malta discuss this in the following article.
The Fourth Industrial Revolution
AI is part of what is now called the Fourth Industrial Revolution, or the age where computers and computational systems will both eliminate and create new jobs and industries across all sectors of work. While some very typical accounting tasks like bookkeeping and ledger entry may become automated, the good news is that AI’s current and future impacts in accounting will likely increase accountants’ current responsibilities rather than replace them altogether.
There are various advantages that the accountant will benefit from while making use of AI:
- Improved quality of data analysis – AI can process vast amounts of data and detect more complex patterns. The accountant’s interpretation will still be needed during the final stages.
- Mitigation of repetitive tasks – An accountant may avoid wasting time on repetitive tasks and will only concentrate and put their efforts into work that can only be done manually.
- Faster data analysis – AI can provide valuable insights into the current status and the future of the business much faster than a human ever could. While an accountant might arrive at the same conclusion, it would take countless hours to go through the data. By saving time, accounting fees are also reduced.
- Enhancing security – Cybersecurity is very active in the application of AI in the accounting industry. Cybersecurity technology can access the stored data securely and protect the cloud with methods that are very complex for intruders.
- Better compliance – Meeting compliance as per the regulations is one of the top priorities for any financial industry. Failing to comply with it can lead to monetary fines, a shutdown of specific operations, risk of volatility, etc. AI can help to meet compliance and eliminate fraud in the process. It can work as per the criteria given in the algorithm.
Contrastingly, there are also disadvantages that the accountant might face with the implementation of AI:
- Human Element – AI can never replicate human intelligence.
- Proper implementation of the algorithms – Although the AI works flawlessly with faster results, its accuracy depends on the algorithm it works on. An improper algorithm or command can bring unnecessary errors and wrong results. So, proper implementation of the algorithm is essential.
- Costly – As we have seen the multiple benefits of AI for the financial industry, it also has a relevant high cost. Therefore, it may not be possible for all the finance companies to initially go for this big expensive model.
AI is still in the early stages, and it will take time to become common practice. However, small steps are starting to be made where it can be integrated to deal with tasks that are simple and repetitive.
Many are worried about the loss of jobs; however, it has been suggested that although some jobs will disappear, new roles will also emerge. Instead of replacing accountants, AI will allow accountants to focus on higher-level tasks that require human instinct and insight. In addition, AI will work alongside them to increase productivity. This will help professional accountants work with their clients to present solutions and options in a more understandable and professional manner, including the human touch, which is still a valuable tool for the accountant.
Why GCS Malta?
At GCS Malta, our expert accounting department can aid you with all your accounting, payroll, tax compliance and advisory matters. Should you require more information, contact us today for more information.
Article by Terence Agius