The Impact of Artificial Intelligence (AI) in Accounting Profession

Notes: This is the summary of the paper published by Faculty of Accountancy, Universiti Teknologi MARA, Kampus Puncak Alam, Selangor. I have intention to read this paper later. 

Credits to the Author(s)

Dr. Norhaslinda Daud

Muhammad Mirza Hakim Ishak

Muhammad Afiq Ahlami Zilkarnain

Rabiatul Adawiyah Rumaizi

Abstract

The paper explores how AI is transforming the accounting profession by performing cognitive functions like learning, reasoning, and problem-solving. It highlights three main impacts: technological, organizational, and environmental. The rapid adoption of AI poses challenges but also offers significant benefits for accountants.

Introduction

AI is revolutionizing various fields, including accounting, by enabling machines to perform tasks that typically require human intelligence. This includes applications in areas like self-driving cars and financial analysis.

Technological Impact

AI enhances audit quality by examining every transaction, reducing human error, and allowing auditors to focus on unusual transactions. It automates repetitive tasks, thus increasing efficiency and providing deeper insights. Major accounting firms like Deloitte and KPMG have adopted AI to improve their services.

Organizational Impact

AI automates data entry and other repetitive tasks, freeing accountants to focus on strategic initiatives. It also changes the skill sets required, with a growing demand for data analysts and business consultants. AI can help prevent financial fraud by providing better internal controls and tracking digital footprints.

Environmental Impact

AI aids in environmental sustainability accounting by automating data collection and analysis for factors like waste and energy use. It helps organizations implement better sustainability practices and reduce their environmental impact.

Problem Statement

The accounting profession is undergoing significant changes due to AI, which threatens traditional practices but also offers new opportunities. The market for AI in accounting is expected to grow significantly, highlighting the need for accountants to adapt.

Research Gap

While AI's general impacts on accounting are known, there is a need for more research on its specific technological, organizational, and environmental effects. Understanding these impacts is crucial for leveraging AI effectively.

Recommendations

Enhance Accountant’s Work: Use AI to automate routine tasks and improve accuracy.

Boost Accounting Efficiency: AI can streamline workflows and provide critical feedback.

Promote Environmental Sustainability: Use AI to automate data collection for environmental factors and improve sustainability practices.

Conclusion

AI is set to transform the accounting profession by improving accuracy, reducing errors, and enabling accountants to focus on more strategic tasks. However, it also requires accountants to develop new skills and adapt to changing roles. Organizations must embrace AI to remain competitive and sustainable.