Artificial intelligence and Block chain impact on accounting

Artificial intelligence has been applied for streamline data in order to analyze historical data and make prediction relating to future decision (Woodside, Augustine & Giberson, 2017). The technology has provided support in accounting fraud prediction model in order to determine the probability of material misstatement so that audit quality can be improved. Present report provide discussion relating to the artificial intelligence and Block chain have impact on accounting and the extent to which same will eliminate the need of an accountant. The report ends up with an assessment of other technologies which have a significant impact on accounting.

Artificial intelligence can be referred as an emerging technology which is applied by organizations in order to draw conclusions from large quantities of data. The same data is applied to the decision which is made regarding various operations of an organization. Susskind & Susskind (2015), specified the same as a subset of machine learning as it can learn as well as adapt as in this technology we teach a machine the manner of learning from data. Thus, it is a fact that AI can learn, act and analyze the data with human intervention (Hood, 2018). Blockchain is a technology which creates a database which is distributed across the internet, but the same can be used only after application of heavy encryption and high secure keys. The users who have access on same can enter individual transaction and once it is accepted by the system it becomes the part of chain.

Artificial intelligence assists auditors to assess in detail through processing much larger volume of data. Accounting can be done in a more prominent manner with the assistance of AI as it does not require a sample for verification of all the transactions as it assesses all the transactions. On the other hand block technology can be said as an entirely separate technology in which applicants can move further alternative digital currencies (Hood, 2018). Thus it assists in analyzing the data in detail and appropriate manner. AI assists in make a decision relating to future projects after ascertaining the historical data as well as past trends so that appropriate predictive value can be determined to assess future risk and events.

It can be accessed from above discussion that Artificial Intelligence and Blockchain have the potential of radically changing the accounting profession (Wenger, 2014). The experience which has been assessed yet relieves the fact that these technologies have shifted the job of accountant rather than eliminating them  Both the technologies are having significant potential for future as it assists in eliminates the testing, verification, substantiation procedures and provides more transparency and accuracy in accounting.

The potential of AI and blockchain in accounting

It would be inappropriate to say that AI and Blockchain will eliminate the need for accountant as the same has restructured the role of accountant rather than eliminating the same. The possibilities of AI and blockchain are endless in accounting field as it assists in integrating the data of all sizes in order to analyze the same in detail and efficient manner (Watty, McKay & Ngo 2016). Artificial Intelligence assists in reviewing and assessing a large volume of data along with entering the same; thus through the implementation of same the role of the accountant has become widen as now he is responsible for not only entering the data but also to assess same in an appropriate manner. Blockchain can be referred as a secure distributed ledger. In case a transaction is being entered in the ledger than the same in not only update in real time, but the same is closed instantly on completion of the transaction (Simkin, Norman & Rose, 2014). Due to same reason application of this technology increases the speed of reconciliation as in case the transactions are not outstanding than it will prevent anyone to go back and make an adjustment in those transactions which have been already cleared. Moreover, it is easy for an accountant to make a report relating to same faster and easier manner. The fact cannot be denied that even accountant is ready to accept the technology as the same is a natural part of the accounting firm and with the implication of same, they will able to focus on the client in a more appropriate manner rather than in building their practice.

The author has made clear implication that AI and blockchain has changed the accounting profession rather it would be more appropriate to say that it has reframed the role of an accountant. Through the application of these technologies, accountant will need to readjust their job in order to grow as well as to gain explosive growth (Hood, 2018). The fact should be considered while taking a decision relating to accounting technique that it is not necessary to chase every new product which claims to blockchain or artificial intelligence as every change requires adequate preparation. It is necessary for management to take a decision in an appropriate manner and assure that staff is aware regarding the change of accounting technique which is being adopted by the company. Moreover, the accountant will be able to work better, smarter and in an efficient manner through the application of these technologies as they will make a decision after reasoned analysis and interpretation which will be more valuable than ever before. In words of Mohammadyari & Singh (2015), it could be assessed that this technique will require a greater diversity of perspective and background in order to apply the same with efficiency.  The role of the accountant has become inclusive of the role of trusted business advisor, exceptional interpersonal skills and being creative in delivering exceptional strategic insights (Hood, 2018). Acceptance of these techniques will definitely not eliminate the role of an accountant but will surely eliminate a part of the role of accountants which is presently played by them.  Thus, the same will also require the accountant to remain updated along with technology as well as being ready to deal with changes and challenges (Jefrey, 2018). The application of techniques has made them more predictive and forward-looking which provide assistance in ascertaining future risk as well as opportunities. It can be concluded that practical consideration is required to be taken in order to apply artificial intelligence with efficiency and quality of data can be assessed as the main variant of success behind same.

Reframed role of accountants due to AI and blockchain

The fact cannot be denied that accounting has been transformed due to change in technology and in future an immense impact of same will be assessed in accounting filed (Dzuranin & M?l?escu, (2015). Another technology which is having a significant impact on accounting field is The Cloud; even many of organization have already embraced the specified technology.  Public cloud can be said as the fastest growing cloud, and same is being dominated by providers such as Amazon, Google and Microsoft, through these they offer to many clients who share the same infrastructure. It can be assessed that the techniques have reframed the discipline of accounting and bookkeeping. The same has made accounting more productive and cost effectiveness due to indulging of automation in specified areas such as data collection and data processing (Godsiff, 2015). It is necessary that concept of forward-looking is necessarily required in order to attain the advantage from this technique. Evolvement of cloud computing  has converted the role of the accountant as a consultant role to the management in a new manner as it provides crucial financial and business advice through assessing financial data in more appropriate manner. It can be asserted that the technology has assisted in adapting new condition and same have encouraged new accounting professional to use accounting cloud service in order to provide services in more efficient manner. Dai & Vasarhelyi, (2017) asserted that it has also developed a positive approach to improvement and efficiency has been enhanced on a continuous basis through application of same. Other advantages which have been attained through application of this technology is that it ensures the quality of data and parties evolved in same works for assuring the consistency of quality data which is being processed on the system. The fact cannot be denied that the innovation has enhanced the extent of risk as well as challenging conventions.

It can be concluded from above discussion that artificial intelligence and blockchain technique have reframed the role of accountants. However, on another side the same have enhanced the level of risk and competencies which is required by an accountant to play their role in an appropriate manner. Artificial intelligence has provided ease to an accountant in order to make appropriate predictions relating to a future decision, but the accuracy of same is dependent on the quality of data. The fact cannot be denied that excessive and continued acceptance of these automotive techniques will eliminate accountants from a few of the role rather than eliminating accountant as a whole. Further, the same will enforce to redefine the job role, obligations as well as qualification of an accountant. 

References

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Dzuranin, A. C., & M?l?escu, I. (2015). The current state and future direction of IT audit: challenges and opportunities. Journal of Information Systems, 30(1), 7-20.

Godsiff, P. (2015). Bitcoin: bubble or blockchain. In Agent and Multi-Agent Systems: Technologies and Applications (pp. 191-203). Springer, Cham.

Hood, D., (2018)., Brace yourself for AI & blockchain: There’s less threat and more opportunity in  emerging technologies than many think. Accounting Today., 32(1),  30-31.

Jefrey, C. (Ed.). (2018). Research on professional responsibility and ethics in accounting. Emerald Publishing Limited.

Mohammadyari, S., & Singh, H. (2015). Understanding the effect of e-learning on individual performance: The role of digital literacy. Computers & Education, 82, 11-25.

Simkin, M. G., Norman, C. S., & Rose, J. M. (2014). Core concepts of accounting information systems. John Wiley & Sons.

Susskind, R. E., & Susskind, D. (2015). The future of the professions: How technology will transform the work of human experts. Oxford University Press, USA.

Watty, K., McKay, J., & Ngo, L. (2016). Innovators or inhibitors? Accounting faculty resistance to new educational technologies in higher education. Journal of Accounting Education, 36, 1-15.

Wenger, E. (2014). Artificial intelligence and tutoring systems: computational and cognitive approaches to the communication of knowledge. Morgan Kaufmann.

Woodside, J. M., Augustine Jr, F. K., & Giberson, W. (2017). Blockchain Technology Adoption Status and Strategies. Journal of International Technology and Information Management, 26(2), 65-93.