Question

Task 1 Research and explore what is Artificial intelligence (AI) and Blockchain. Critically analyse how are they currently used in accounting and what is their potential future in the field. Task 2

Answer 1

Solution:

Artificial Intelligence (AI) is used to describe the theory and practice of creating machines capable of carrying out tasks that require intelligence. On the other hand, Blockchain is a technology that can help track transactions between users in a public ledger which was developed originally for Bitcoin. It is now used commercially for various applications such as tracking ownership documents, digital assets or voting rights.

Both AI and blockchain involve technical complexity and there seems to be a sense of agreement among experts that these technologies will have serious business implications in the next five to ten years. The joint use of the two technologies might alter the tech and business paradigm significantly enough for business leaders to take more notice of developments in this space.

Machine learning is a subfield within AI that should be of particular interest to accounting professionals.Machine learning as giving "computers the ability to learn without having to be explicitly programmed." With machine learning, tasks that have traditionally required human intervention can be automated. This technology increases efficiency within the accounting profession to an unprecedented degree, which in turn will affect our future workflow process and how we interact with clients.

When you combine machine learning and blockchain, you get nothing short of a technological revolution. It's possible to envision a world where accounting and auditing happen in real time, with all relevant parties being informed every step of the way — a true continuous audit. That future may still be a ways off, but now is the time to start assessing which processes in your firm could be amenable to AI technology. Accounting firms and corporate accounting departments should start not only learning how to take advantage of the technology, but also testing new ways of working internally with their teams and externally with clients. Starting small with expense reporting or document collection applications can be a way to gain confidence in the benefits of utilizing technology like this before taking on larger applications like general ledger systems.

Future of AI & Blockchain

Auditors will spend much less time performing audits, and more time designing, reviewing, and verifying how information flows between systems. Rather than audits being performed at regular intervals, blockchain and machine learning present the possibility of a true continuous audit. All of this technology adds up to more time for human connection with your internal teams, as well as your external clients, with soft skills, analytical abilities, and advisory services becoming important in delivering value to an organization. With continuous audit, trends and missing data could be identified much earlier, allowing for problems to be proactively addressed, rather than reactively reported. Continuous auditing also would give peace of mind to businesses and their investors while also, hopefully, reducing many of the tasks that accounting firms often have written off or not charged for.