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Accounting is no longer what it used to be

, by Francesco Grossetti - assistant professor presso il Dipartimento di accounting
Data entry, bank reconciliations and the processing of invoices are all routine activities that are increasingly entrusted to AI technologies, something which makes data reliability crucially relevant. And so companies are now increasingly pushed to embrace forwardthinking analytics

AI has the potential to revolutionize accounting and finance in several ways, including predicting financial market trends and automating routine accounting tasks. One of the most significant advantages of AI is its ability to process vast amounts of data quickly and accurately, which was previously done manually and was time-consuming and prone to errors. AI algorithms can identify patterns in historical data and make predictions about future market trends with a high degree of accuracy. This helps investors make more informed decisions about which stocks to buy or sell and when to do so. Another area where AI is making a significant impact is automating routine accounting tasks such as data entry, bank reconciliations, and invoice processing. These tasks can be tedious and time-consuming for accounting professionals. By using AI-powered software, these tasks can be automated, freeing up time for accountants to focus on more complex and strategic work. Overall, the future direction of AI in accounting and finance is promising, but careful consideration and planning are required to overcome some important challenges.

The use of AI in accounting centers around data and automation, with machine learning and other AI-powered technologies driving new and improved practices for data analytics in accounting. As technology continues to support much of bookkeeping, finance, and accounting, the amount of data available becomes increasingly vast and precise. AI inspires companies to embrace "forward-thinking analytics," which involves using AI to forecast weeks, months, or even years in advance, rather than relying solely on past data to make present decisions. Several benefits seem to be right around the corner. Concepts like invisible accounting, a function that quietly frees up humans from doing repetitive tasks and enable a more active involvement and engagement with strategic engagement, or continuous auditing, are becoming a reality and on the brink of physical implementation.

The use of AI in accounting has numerous benefits, but there are also concerns about its potential drawbacks. One of the most significant is the risk of bias in AI algorithms. If the data used to train the AI is biased, the results may also be biased, which could lead to inaccurate or unfair conclusions. This is a major concern that must be addressed since even small errors could have significant financial consequences. Another concern is the impact on human jobs in the accounting industry. While AI can automate many routine tasks, it cannot replace the expertise, judgement, and more generally, the common sense of human accountants and financial analysts.

To sum up, AI is rapidly gaining popularity in accounting and finance research due to its potential to provide significant benefits, including data processing, market trend prediction, task automation, auditing, risk reduction, and fraud detection. However, there are valid concerns regarding bias and the possibility of job displacement. As with any innovative technology, it is essential to understand AI's potential risks and advantages. Rejecting AI altogether is not the solution, as this could result in humans being replaced not by AI, but by other humans diligently who use this technology ethically and responsibly.