Artificial intelligence (AI) is becoming a key player in many industries - accounting and controlling are no exception. Can businesses adapt to this new era and take advantage of the benefits AI offers? Read how AI will impact the digitization of accounting.
Will AI take your job? That's a question you may be asking yourself more often in the last six months than you were a year ago. And no wonder. The advent of AI machines is on the rise, nothing is likely to stop their development, and we need to prepare for them and learn how to work with them. AI may be a bogeyman at first glance, but upon closer inspection, it can bring many benefits to your business, unleash your potential, and even help you get ahead of the competition. How?
What do you mean by digital accounting? It's definitely not just about digitizing receipts. On the contrary. One of the key benefits of AI and digitisation in accounting and finance is its ability to quickly identify patterns in large data sets.
By using machine learning algorithms, businesses can quickly spot inconsistencies in their financial data that they may not have noticed in the past. For example, an algorithm could analyse past transactions and flag any suspicious activity before it becomes a bigger problem. By analyzing large data sets in real time, companies can react faster in the event of a problem while minimizing losses due to fraudulent activity.
So what is machine learning? It's the process of providing data to software so that it can learn from it and make suggestions based on it. Sophisticated algorithms can then accurately predict future trends based on past data.
Artificial intelligence in accounting software often takes the form of machine learning, and its algorithms are already being used to analyse financial data and make predictions.
While this is not new, you still have a chance to improve the process. You can train an AI model to predict future cash flows, identify potential risks and opportunities, and recommend strategies for better results.
Artificial intelligence can then generate predictions and scenarios that provide a better understanding of future trends and risks. This enables businesses to make better decisions and plan strategically to ensure success in the marketplace.
Companies should already be taking proactive steps now to be prepared for a future of accounting that will be increasingly automated due to the influence of artificial intelligence. We have some tips on how to prepare for this future.
Artificial intelligence can quickly uncover previously hidden relationships from multiple data sources. This will lead to greater efficiency and accuracy while reducing costs. However, accounting is a complex profession that requires a thorough understanding of financial regulations and processes, which AI cannot do (yet).