THE ROLE OF ARTIFICIAL INTELLIGENCE IN FUTURE

Artificial intelligence is emerging at a tremendous speed as technology becomes more pervasive. This has also been made possible by increasing data collection, and with that comes more information that can be used to create new types of applications — for better. Data collected from devices and sensors can now help identify patterns in behavior that would have taken human beings years or even decades to discover. AI will change our lives drastically thanks to its ability to analyze vast amounts of data, process it quickly, and provide insights that would not be possible before artificial intelligence came along.

Artificial intelligence can do everything you ever wanted it to; from powering robots and personal assistants to diagnosing diseases. However, many people are worried about what this means to their job security. But what does it mean for jobs like accounting? What does automation bring to the workforce that has always operated on a tight budget but has never dealt with data before? In other words, how will accountants prepare for changes when artificial intelligence takes over the financial industry?

THE ROLE OF ACCOUNTING

This question has generated heated debate since it was first raised in the media. Many companies are facing pressure to make their operations more automated. As data analysis became more common, so did the responsibilities associated with managing data: reporting, billing, and others. To account for these changes, many traditional firms are now outsourcing some capabilities, while others are hiring accountants from outside the profession. 

While there are plenty of reasons to fear this shift in business, it is important to keep in mind that the need to manage data and understand its nuances exists across industries as well. Most accounting departments will be dealing with huge files that are spread across multiple computers and hard drives at different locations; accounting is a field that relies heavily upon data and therefore requires accountants who know how to get to the root of problems and solve them. A recent example of just how complex and diverse its requirements have been been the massive amount of data surrounding healthcare; where hospitals and doctors rely on the type of information technology (Big Data), which is then stored on those hard drives, to find patterns in data and use those patterns to detect and treat patients. Another industry that is currently adjusting to the changing demands of data in finance; banks, pension funds, investment funds, insurance companies, and others will be relying on data analysis and statistics to help strategize on the go. In an article published in September 2018, IBM stated that while many organizations already had systems and processes that had kept their business up and running, they needed to ensure that they were prepared for the modern challenges ahead as well as solutions that had to be found to improve performance and efficiency levels. That included providing tools and training for employees with a variety of backgrounds. All in all, there is no denying there is an impact of the rise of artificial intelligence to change the way we think about data and even how certain industries operate: if these firms, then the rest of us?

The importance of data analytics has led many firms to hire accountants as consultants to help guide their own decisions. Some states like California require that a minimum of four percent of a firm’s board of directors at least one accountant be a certified accountant. While these regulations seem almost ridiculous in most cases, few businesses can afford to ignore the advice and guidance provided by the Certified Accountant Association and others in the area. It is a small matter of time before many of us forget that accountants play a pivotal part in any business, especially smaller ones when it comes to working out budgets, developing corporate strategies, analyzing sales leads, and other areas of decision making. With artificial intelligence having such an enormous effect on the economy, it is impossible to predict exactly how many roles accounting could take-off of the table. Of course, this doesn’t mean that accounting would completely disappear entirely, but the sheer volume of potential work done by today’s accountants should prove that there would still be many jobs that wouldn’t be available before technology fully changed society.

Another concern with the growth of artificial intelligence is privacy. Several privacy issues may arise due to the rise of artificial intelligence; with this being the year that Facebook announced that it plans to release more detailed customer data and use artificial intelligence as a tool that allows it to distinguish between friends on its platform, it’s safe to say we’re heading towards a very difficult period for our trust in the government. Although a lot of artificial intelligence and machine learning research is conducted under stringent standards that follow strict guidelines to keep data secure and private, it is not always clear of the exact details as to why these rules exist. This raises concerns about the extent to which the government of the United States holds its citizens to secrecy regarding national security and other sensitive issues. If this trend continues, the country may soon face problems such as less faith in the government and higher taxes that force Americans to turn away from their leaders. Perhaps one thing the economy of America could benefit from right now, however, would be transparency. Whether through a newly formed commission or by the executive branch itself, many institutions and corporations would benefit from allowing journalists to report issues and issues involving the activities of government agencies without fearing repercussions. With this being said, it’s not too much of a stretch to assume that artificial intelligence would lead to a decrease in the number of jobs that have evolved into positions of management within the U.S. and in accounting specifically. For the foreseeable future, however, the answer remains the same; the number of roles evolving into positions of higher management will not be the same amount as before, simply because of the increase in complexity resulting from data analysis. And as the roles evolve, the pay and value they provide to those who manage them will too. So what does that mean for the entire U.S.? Will jobs related to accounting and data analysis that companies cannot afford to let go of becoming redundant once artificial intelligence has created them? Only time, however, will tell.