Technology has given us many gifts, like computer, Internet, GPS, and among the list of gifts which humans have developed from the always evolving technology, Artificial Intelligence tops the list when it comes to transforming the world. All the major technologies like Siri, Cortona, Google Assistant, Amazon Echo, wouldn’t have been possible without AI.
But one of the major sectors which have been affected by AI is business and their different processes and accounting is now no exception to it. With major technological changes like the shift from paper to software, desktop to the cloud, accounting is now being shaped by Artificial Intelligence in order to give it a more precise form. In addition to AI, machine learning is also playing a major role in changing the world of accounting and all these transformations will be witnessed by us in this blog post.
But before moving on to how AI and machine learning, will transform or is transforming accounting, let’s go through a quick description of both these technologies.
What is Artificial Intelligence?
It is a particular area of computer science which focuses on the development of intelligent machines that work, analyze and react like humans but to a larger extent and with better accuracy. Some major Artificial Intelligence implementations are in the area of Speech recognition, learning, planning, problem-solving, etc.
What is Machine Learning?
It is a specified field of computer science in which statistical technique is used to give computer systems the power and ability to learn with the data without being explicitly programmed. Some of the most common examples of machine learning are Google Maps, Sir, Cortona, PayPal, Uber, etc.
The role of machine learning and AI in transforming the world of accounting
Although the concept of machine learning and AI is not new to this world, when it comes to its implementation to accounting then we can say that it is still in its early stage. In order to make AI and machine learning work together with the accounting system, we will have to look for a better process of bundling up of these two processes.
But we can see the improvements as accounting software as getting smarter day by day. For example, now most of the accounting software can automatically process a data or perform an analysis which earlier required human interventions. Consider the case of bank reconciliation, in which the accounting software learns how to automate this cumbersome job allowing you to get more free time.
The recent development of by Xero in the form of The Hey Xero chatbot will integrate financial information from that of Facebook Messenger. By using machine learning and AI, it will allow businesses to query their latest financial data.
But even with these developments, you don’t need to worry about your job as a bookkeeper or accountant because even the most advanced Artificial Intelligence will never be able to replace the human intelligence. So consider your accounting or bookkeeping job secured.