Artificial Intelligence Is Going to Make Us Work Faster and Smarter
Artificial Intelligence or AI could change business in general and it could chance professional services in a particular way. With the rapid developments in machine learning, data mining and cognitive computing the next decade will be a promising one, big leaps forward are expected.
Even though there is excitement about potential applications of AI, there are some misconceptions that generate fear about it. The main fear about AI is that it will replace humans in value because they will do the tasks that humans currently do. Moreover, AI is capable of doing those tasks faster and more accurate.
However, in this article those myths will be only that: myths. It’s going to be explained why AI will enable us to work better, smarter and faster instead of becoming a replacement of human beings in workplaces.
Understanding the World
Human beings are currently starting to understand our world, it is a journey. The last three years the applications of AI have been the mainstream across professional services.
The phrase of understanding the world means that AI is getting better at handling, organizing and analyzing a wide range of inputs that comes as structured and unstructured data. That is possible because there is too much data to analyze. Digital revolution has created the fuel to feed AI engine, this AI can generate some very interesting results because of their capabilities.
For example, lease accounting is a hot topic because recent accounting changes demand companies to scrutinize their position regarding leases and to recognize related liabilities; before the invention of AI analysis of lease accounting had mainly been performed by only human review, some current pilot studies indicate that AI tools can allow the analysis of a larger number of lease documents in a much shorter timeframe in comparison with humans.
These pilot studies show that AI tools would make it possible to review about 70% to 80% of a simple lease’s content electronically, it leaves the remainder to be analyzed by a human. With more complex leases (in real estate for example) that percentage is reduced for about 40%, with the improvement of AI tools it is likely that more complex contracts and data will be read and it will be analyzed and managed.
This is an example of what AI can do, as you can see it, it can’t replace judgment at all, that’s what humans can do best so far. That’s why AI can’t replace human beings.
Predictive value is something that can be seen as a real benefit of this type of application. It’s been recently used the deep learning technologies to learn from seven years of financial statements through six machine learning algorithms, that was able to survey enough data to evaluate where restatement risks lie. This technology makes it possible to predict where future risks may occur and that allows audit teams to redefine their approach. That also presents some intriguing possibilities to detect fraud.
That predictive ability is what marks the next step in the evolution of AI, it allows auditors to carry out works like this more efficiently and with more accuracy.
Interacting with the world
The second phase of AI’s development is interaction with the world. This is taking shape as consumer products such as Amazon’s Alexa and Microsoft’s Cortana. These devices rely on voice recognition and other tools that make a cleverer usage of AI, these devices can respond to demands in an intuitive way.
This interaction phase is still at an early stage because it has relatively unsophisticated applications, however, the work is going into a big transformation and this AI can be used to improve some of the corporate performances. A combination between drones and internet will enable AI to interact better with the material world and that power is known as the Fourth Industrial Revolution.
The impact of AI won’t be merely in the type of work auditors do with their companies. For example, the growth of AI may change the way talent is recruited. AI will demand different profiles instead of replacing them as people may fear that.
It is going to be needed skilled people who is able to work across a wider range of disciplines. This next generation will need to understand accounting, relevant industry and AI, blockchain and machine learning, it is going to be needed also to understand how all these disruptive elements work together in a faster and more complex world, that will be necessary to deliver high quality audit and added value.
These technologies if are applied thoughtfully and effectively will improve quality and it will reduce risks, it will also enhance confidence. In fact, the biggest challenge for both companies and their auditors goes beyond technology, it’s about changed management and the potential confusion over how AI is applied. But remember, AI can do a lot of things, however, there is also a lot of tasks that it can’t do and we can’t think of it as something reliable because it brings skepticism and judgment.
The future is not here yet but AI brings it closer. There is nothing to fear about AI, human beings are the ones that are making Artificial Intelligence, thus, it is something that can be controlled, AI is going to be used for specific tasks and it will allow to humans to focus on other important things.