Artificial Intelligence, well known as AI, is changing the world we live in as we speak. It is helping us perform tasks at an efficient rate and less brain power is being used to generate information. As shown is the graphic above, the use of AI has skyrocketed in world markets over the past 10 years to up to almost $12 billion in revenue. The question we should ask ourselves is, while AI is an amazing tool, are there also negative consequences of it? Out of all the major industries and jobs in the world AI has a unique impact on accounting. As a result, many raise the question of if we will need accountants in the future. After all, why do we need accountants when AI can simply create financial statements and analysis for us?

Effect of AI

On an article on Rekord, they describe the 8 main ways AI is changing the accounting industry:

1. Improved quality of data analysis– AI can process huge amounts of data, extract insights and detect more complex patterns in data than humans can.
2. AI can learn and become smarter– AI can automatically and instantly learn from errors and become increasingly smarter over time.
3. Mitigating repetitive tasks– Rather than wasting time on tedious tasks, accountants can focus their efforts on work that can only be done by humans – such as consulting with the clients and advising them on successfully running their business.
4. Reducing errors– Artificial intelligence can detect errors immediately and ensure bookkeeping and accounting records are always accurate.
5. Speedy data analysis- AI can provide valuable insights on the current status and the future of the business, much faster than a human ever could.
6. Real-time compliance monitoring- It provides accountants with reliable, fast data each time they generate a report, thereby maximizing efficiency and giving clients peace of mind.
7. Increased security- Cybersecurity technology is capable of accessing the stored data securely and protecting the cloud with methods that are very complex for intruders.
8. New opportunities- AI creates new career opportunities by allowing accountants to focus on higher-level tasks that require human instinct and insight.

Importance of Consulting and Auditing

Overall, while AI can do a lot of work for accountants, the world is still in need of accountants. Accountants need to adapt and embrace technology while developing new diverse skills, such as interpreting the information generated by AI and using data to help clients make financial decisions. Consulting and auditing have never been more important than it is now. We need accountants who are willing to offer advice to clients and be able to effectively communicate, in addition to understanding financial reports. While AI has generated financial data and information, it can’t make decisions for you, and that’s where accountants are still more important than ever in our modern society.

In conclusion, AI has made a positive impact on the world and hasn’t caused harm in the field of accounting. We still need accountants, but they must be able to perform different skills than previously before AI and technology took over. Instead of constantly crunching numbers and bookkeeping, accounts must develop effective communication and analytical skills to use the information provided by AI to help clients make business decisions in fields such as consulting and auditing.