Artificial intelligence (AI) is a smart representation of human intelligence operations by machines, particularly computer systems. AI applications comprise of natural language processing (NLP), expert systems, speech recognition, and machine vision.
Just like we humans are blessed with a vital organ in our body-brain that aids us in thinking and reasoning, similarly, AI machines run on automation. The commands that we give to these intelligent machines, they abide by it and perform tasks infallibly.
The three cognitive skills that lay the very foundation for Artificial Intelligence are: ascertaining, logical thinking, and self-rectification. Now let us demonstrate each of its skills and see how are these contextually valid in accountancy field when we talk about certain automated cloud accounting software:
In this process, AI computer programming centers on getting data and making rules for how to turn the data into workable information. These rules are called algorithms; they provide step-by-step instructions to the computers for completing a specific task. In the context of accountants, be it any business accounting software, it will first learn the process and then function.
Herein, AI programming centers on selecting the right algorithm to reach a coveted result. In the context of accountancy, automated cloud accounting software does the same.
In this step, AI programming is contrived to persistently calibrate algorithms and assure they render the precisest results possible.
AI has started to spread its roots in ways unthinkable. Humans, being the superior-most race alive on the planet, are sure to feel the pressure as they might not be indispensable anymore. But, is this the only angle we should perceive this change with? Certain reliable surveys reveal, by 2020 accounting jobs will run by automated cloud accounting software.
According to another study, only 4% of 600 finance professionals have carried out business accounting software systems in their organizations and that’s notwithstanding 47% feeling eager about it.
The major concern is whether the jobs of these professionals will be threatened or not. The biggest question here is will even the best accounting software replace accountants? Before getting down to that answer, lets first have a look at what are the pros and cons of this potent technical advancement-Artificial Intelligence.
Although almost all jobs will be impacted by automation, only 5 percent of lines of work would be fully automated by looking at the current technologies. While many other occupations will have certain constituents mechanized, statistically about 30 percent of the activities in the overall 60 percent of all lines of work could be mechanized. So, right from blue-collar workers like welders to white-collar mortgage brokers, accountants, and CEOs—they all will have to work besides ever-evolving machines to keep up with it.
Employees will be required to showcase a specialized skill set acquired over a while to thrive in the workplace of the future automation. The necessity to fathom innovative technological skills such as computer programming will grow rapidly as some of the best business accounting software will come into the picture.
Most importantly, humans will have to work more on the non-mechanical side of things such as creativity, critical thinking, and complex information processing, because a machine cannot go beyond the fed data. The demand for staple skills like digital know-how has been increasing and that trend will carry on and accelerate.
As per research, in many countries, the demand for physical and manual skills will slump but will continue to be the exclusive largest category of workforce skills by 2030. As a result, additional pressure will be experienced by the already existing workforce.
In accountancy as well, automated cloud accounting software might displace some workers. But, on the whole, during 2016–2030, around 15 percent of the worldwide workforce, or about 400 million workers, could be dismissed by automation. This again brings us down to the importance of projecting the pace and scope of adoption in automation.
Even in our most tedious adoption milieu, only about 10 million people would be given the sack, close to zero percent of the worldwide workforce. However, the positive to it is that new jobs will be created simultaneously. Even as workers are fired, there will be a growth in demand for work and jobs. Statistical scenarios showed an array of additional labor demand in between 21 percent to 33 percent of the workforce worldwide. This will benefit developing countries like India where the working-age populace is already springing up speedily.
Automated software comprehends natural language and can respond to questions asked of it. The system taps patient data and other relatable data sources to form a conjecture, which is then presented. Other examples of AI applications are chatbots, a program used online to answer questions and help customers schedule re-examinations. It also helps patients through the payment process. These virtual health supporters can provide basic check-up feedback. Likewise, jobs with repetitive tasks could shift towards a model of dealing with and trouble-shooting automated systems in other areas.
For example, employees of Amazon, one of the biggest e-commerce setups, which previously piled objects are becoming robot operators, supervising the automated arms and adjudicating issues such as disruption in the flow of objects. So, if we talk about AI in personal finance programs, such as TurboTax and Intuit’s Mint, leading financial institutions, which collect personal data via automation and provide financial advice.
Other applications of the likes of IBM Watson have been deployed to the process of buying a home. Today, automated cloud accounting software performs much of the trading on Wall Street. The growing automated technology is playing a big role in assisting organizations to fight off cyber attacks. I
It is a huge thing to fight a menace like cybercrime soon with the help of these disrupting technologies in almost all fields. It will not only lower the threat of private data being stolen by professional hackers but will also lay down a secure foundation for extremely coveted data to be protected at all levels. Hence, we have to understand that automation is not something to be feared.
Alongside getting positive changes, it is leaving a lot of room for humans to use it to their advantage. The only thing we need to keep in mind while dealing with automation and AI is how can we add value to the already processed information and how can we stand out between these technological advancements to make a mark smartly!
In a nutshell, governments and organizations at large should deploy automation and AI to extract the maximum benefits of its enhanced performance and fruitful contributions towards the societal benefits. It is a given that these technologies will produce the economic surplusages that will aid societies in handling workforce conversions. The government must play a prudent rule and ensure that the workforce conversions are as placid as possible. So, the answer to the coveted question raised earlier in the article that will AI wipe out the possibilities of accountancy is ‘NO.’ However, shutting your eyes down to the fast-evolving AI can leave behind those who don’t keep up with it.
There is, sure enough, a change over towards furnishing real-time data and accounting software is being deployed to deliver this. We are witnessing automated flows from bank accounts into software, with automated rapprochement against sales and purchase invoices. Though this demands an element of human review, the time interval has drastically reduced.
Henceforth, even in a future with automation, there will be work for everyone as it has today. But, that work will demand the accountants to acquire valuable skills and far keener adaptability of the workforce in general than existent today to work in tandem with some of the best accounting software. It will be imperative to train and retrain accountants and new generations for the coming challenges. Government, SMEs, and trailblazers need to grind together and create the right inducements to invest more in human capital. The future with mechanization and AI will be disrupting, but a lot more productive if we channelize the technologies with assuredness by extenuating the negative effects.