5 Reasons Accountants Need To Embrace Artificial Intelligence
According to a 2017 PwC Global FinTech Report, 77% of financial institutions will increase internal efforts to innovate, with many businesses embracing the disruptive nature of FinTech.
Financial technology (FinTech) has created opportunities for advancement in how accountants do business. It has provided convenience, improved efficiencies, enhanced communication processes, and allowed for greater data insights. Recent research shows that artificial intelligence (AI) is one of the technologies reshaping the FinTech industry and preceding these benefits. Let’s explore…
What is AI?
According to the Journal of Accountancy, AI is technology that enables computers to perform decision-based tasks previously left to humans. It shows up in multiple forms, including machine-based learning that can progressively become better at analysis and decisions the more it is used.
How is it impacting the role of accountants?
Mundane, manual tasks once fulfilled by accountants - data entry, verifications, and fraud detection - are now performed by AI. By 2020, Forbes expects that these tasks - also those associated with tax, payroll, audits, banking - will be fully automated using AI-based technologies.
While the projected adoption rate is substantial, it is important to note that AI will not eliminate the role of accountants. Instead, AI will empower accountants to take on an advisory role that focuses on generating value for clients. To support this, Forbes and Accounting Today present a variety of real-life examples:
- An automated billing system increases the speed with which accountants can provide updated financial information to clients
- AI handles much of the work involved in initiating payments and matching purchase orders for accounts payable and receivable
- Mechanized data entry and data categorization help accountants quickly analyze broad financial trends
- Self-regulating systems intake, code, process and route invoices to save time
- AI can automatically manage resources by designating payment deadlines and approval workflows
For these reasons and others, upwards of 80% of executives believe AI leads to a competitive advantage, and 79% believe it will increase productivity (MIT-Boston Consulting Group Survey).
See these benefits come to fruition! Watch the recording of our webinar, Caseware TechTalk: Embracing The Technologies At Your Fingertips