Artificial intelligence has been in place since the year 1956, but considering the recent momentous acceleration in the accounting and finance industry it has become the vital topic in business. It plays a foremost role in the way the functions are performed in an organisation. Recently, Artificial Intelligence has revolutionised the efficiency, quality and time taken to accomplish these functions in contrary to manual performance. In fact, the very same difference has sparked controversial debates.
There is no doubt the structure, working mechanics, required skill level etc. is altogether transforming with the operation of Artificial Intelligence to remain profitable in the economy and competitive in the market. In support to the well-known theory, the survival of the fittest, now professionals and employees are also expected not only to work in par with technology but also to control them. This, largely affects the attitude of individuals working in an organisation. Also, it is a discerning move from the management to manage the cost, learning curve and all other uncertainties.
Therefore, this paper mainly focuses on the aspiration of understanding the use of Artificial Intelligence in Accounting and Finance industries which in turn assess its effectiveness and performance. Since, employment is another major factor affecting our economy it is also essential to comprehend their value and their knowledge regarding the recent developments. Thus, this paper would be imperative to analyse the attitude and expectation of the professionals and also, the efficiency and evolution of these industries with the employment of Artificial Intelligence.
Artificial Intelligence (AI) implies to the simulation of human intelligence that are programmed to think like humans and impersonate their activities. It presents opportunities to complement and supplement human intelligence and enrich the way people live and work.
India being one of the fastest growing economy and having second largest population in the globe has a substantial stake in the revolution of AI. It is not distinctive when it comes to the significance of AI in Accounting and Finance Industry. AI is more than merely robots that comes into one’s mind when trying to picture the word. It has been transforming these industries through various applications available, such as, data collection, chatbots, personal assistance, consumer interaction, risk assessment, cybersecurity, etc. without emotional and psychological factors affecting them. All the applications can be classified under the different categories of Artificial Intelligence – weak or strong or general centred on its capabilities and reactive machines, limited memory, theory of mind, self-awareness based on its functionality. Whatever maybe the application or the category of AI used by the industries, the aim of AI includes, 1. Learning, 2. Reasoning, 3. Problem solving, 4. Perception and 5. Language.
With technological advancements, AI has been evolving to beat its own previously set benchmarks and benefits. Since, the world seems to be transforming with AI, it is no doubt that it has created a fear of employment and replacement among the people as. In contradiction, it is also said that AI is only to eliminate tedious mundane jobs enabling professionals to perform more higher-level tasks, lucrative analysis and counselling. Also, it is believed that new jobs will be created through micro-economic and macro-economic effects. As of October 2019, a joint research conducted by the National Business Research Institute and Narrative Science stated that only about 32% of monetary service providers have adapted or embraced AI. In addition, a joint survey conducted by EY and Invesco stated that the adaptation of AI is expected to be 64% in the ensuing two years. Thus, AI has become the inevitable by gaining constant attention from everyone including the Government of India. The Indian Government conducted and published a discussion paper on National Strategy for AI with the help of NITI Aayog. Therefore, it is imperative to recognize the level or degree of impact AI has on these industries and the work force to analyse the current work environment and the future.
Almost all the industries are now aware of the existence of AI and the possible benefits they could gain from its application if due care and diligence is taken. The following are some ways in which this fast-moving technology has been put to use for everyday activities by the accounting and finance industry. To begin with, AI based invoice management systems helps in payment/receiving process by saving time, cost and errors. Secondly, AI can examine a supplier’s tax details and credit scores all by themselve
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