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Every sector of the workforce is being affected by advancement in technology, and most of them are taking advantage of what it is bringing with it. One of the next big things that technology has offered to us is Artificial Intelligence.

It is no longer a thing limited to science fiction and has been implemented across the financial sector as well as multiple other industries from stock trading to hospitals and manufacturing companies.

What is Artificial Intelligence?

Artificial Intelligence or AI is the capacity of machines and software to exhibit or imitate a sense of cognitive intelligence. Its systems are powerful, extremely accurate and are improving quickly. AI in combination with robotics is essentially reviving the workforce.

Its system is trained to answer questions on the basis of data gathered through interactions. However, it cannot replace the importance of human intelligence and power of critical thinking. Therefore, today it is the need of the situation to recognize the strengths and limitations of this form of intelligence and fill the gap by building an understanding of the best ways humans and computers can work together.

Impact of Artificial Intelligence on Accountancy and Finance

As we all know, AI is completely ingrained in our daily lives, from Alexa and Siri helping us at home in our day-to-day chores and software of Google, SAP, and ERP helping us out in our office works. Because of the heavy reliance of finance and accountancy departments on mass numbers and data, AI is the prime option. These intelligent systems can make routine work like number-crunching and data-sifting easier. The drivers behind the installation of AI in business processes are its efficient speed, accurate results and its capability of dealing with voluminous amounts of data for accounting purposes.

Streamlining of financial decisions can also be done with the help of Artificial Intelligence. One of the great ways to use it is for credit checks. Software introduced in this field for financial analysis has been greatly able to help understand and undertake decisions regarding credit within minutes rather than weeks.

Apart from these benefits that AI brings, it also poses a threat to the business industry. A leading research house has also placed over half of all finance and insurance jobs at medium to high risk of total automation. But as has been noticed in the past, accounting and other business processes have always been open to welcoming upgraded technological use into their routines and AI is no different.

Therefore, the main takeaway we have from here is that AI cannot compete with human intelligence insofar as strategic decision making, process improvements and signing off tasks are concerned. AI software will always require the need of a human. So, most of the higher level work done by accountants isn’t going away anytime soon. But the grunt work can be taken care of by AI if used it is implemented and planned well.