What is AI?
AI, or Artificial intelligence refers to a set of technologies that simulate human intelligence and perform tasks. Today, these technologies can hold human-sounding text conversations, make predictions based on data analysis, and even drive cars.
How is AI used in accounting?
AI helps you automate some of the more mundane day to day tasks that would usually be undertaken by a human. It can be used for data entry, reconciliations, processing invoices and a host of other processes.
Along with the transactional processing, AI can also compile financial reports, cash flow forecasts, use pattern recognition to detect fraud and analyse huge amounts of data in the blink of an eye.
In audit for example, AI will allow auditors to quickly locate specific information, freeing them up to focus on the advisory aspect.
Will it replace humans?
One of the major concerns surrounding AI is that it will eventually take jobs away from humans, however a recent report by the world economic forum predicted that AI could generate up to 97 million new jobs, in fact it could create more jobs than it replaces. Whilst it will affect certain jobs, it will augment, rather than replace others.
In accounts, AI can help you provide a higher level of service for your clients, taking away the repetitive tasks that are so time consuming, and allowing you to concentrate on building solid client relationships and enabling you to provide real-time, reliable, and accurate advice to your clients.
How to embrace AI as an accountant:
As we have mentioned, AI will replace some aspects of an accountant/Bookkeeper but there is a lot it can’t do. Focus your development on your soft skills, communication, building relationships, developing new business opportunities and ensuring you are up to date with all current technological advances.