Artificial intelligence

Will artificial intelligence replace accounting?

Artificial intelligence revolutionizes the capabilities of computer science and in the financial sector it is not the exception, there are so many advances in this branch that it is impossible not to imagine the possibilities and how these would benefit us in the medium and long term, in this mind accounting It is one of the most important pillars of companies and the way in which AI interacts with it is incredible.

AI extends the capabilities of computing to a whole new level. It allows systems to make predictions and change accordingly, just as humans would. It enables computers to perform machine-based learning, previously left to humans.

Big data has the following characteristics: large volumes, high data flow rates and a wide variety that are often complex.

I have worked for 40 years applying my training and skills as an accountant in external audit, corporate finance consultancy, as a chief financial officer and as a chief internal auditor. Will the next 40 years see the demise of the accounting profession brought on by AI and the use of big data?

As long as companies have the public as stakeholders, the wider society working through institutions, regulators, legislators and interest groups will require companies to be audited. Why is that the case? The crux of the matter is the need for an independent assessment that the financial affairs of the business are carried out and accounted for correctly.

Accounting standards are established to ensure that transactions are correctly recorded or disclosed in a consistent manner regardless of the type of activity or jurisdiction in which the business operates, certainly with appropriate modifications for specific circumstances.

Auditors, with their training in healthy skepticism and an analytical mind, should perform such tests and other work necessary to give an opinion on the truthfulness and fairness of the company’s financial statements. Artificial intelligence and the use of big data will certainly mean that tasks currently being performed on a sample basis can be performed more efficiently, accurately and quickly for the entire data set.

Accountants who have experience in external auditing, financial management, and / or internal auditing are well qualified in risk management, internal controls, and governance. They can continue to contribute their experience and knowledge even after retirement, as independent directors of listed companies and other public interest organizations.

AI and big data will never replace them.

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