AI: New Perspectives on Accounting and Finance

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AI: New Perspectives on Accounting and Finance

New Perspectives on Accounting and Finance – The influence of AI on jobs seems to be a question that’s on everybody’s mind. There’s a lot of things being said about the influence of AI on jobs, but there’s no specifics. And one of the things we looked at is the effect that AI has from a macular perspective on people’s jobs. And there’s not that there’s not gonna be jobs, or there’s gonna be a huge reduction in jobs.

In fact, Gardner has forecasted there will be a net job creation effect by 2025 of two million jobs. It becomes a question of skill and people being able to work in this new environment where you will work alongside these algorithms and computer systems to do a more effective job. So although some jobs will change, there will still be people that has to work in this environment and know how to use these tools effectively. And that’s really the thing to think about.

It’s not the loss of jobs. It is the structural change in how people, especially in accounting will work in this new environment. The benefit of AI for companies today with what they couldn’t do five years ago is really a key question because it goes to the benefit of this tsunami that’s coming toward us everybody’s trying to come to terms with.

And on the decision support side that we looked at, it really goes to optimization. Executing production much more efficiently than what was possible in the past before AI, whether it’s process manufacturing or discreet manufacturing. And then from a management information perspective, the ability to simulate scenarios around profitability or the avoidable cost of any decision that the manager would like to make.

So the frequency and the realtime nature of information drastically increases in the AI world.

So I think this is one of the questions that’s really on the mind of people in accounting, you know, how does it affect me? How is it going to affect me?

There’s a lot of blunt material and videos and interviews being spent on this topic of what exactly does AI mean for the accounting community?

But there’s a huge lack of specificity. And to an extent, it’s really impossible to predict, because it can change in so many ways. I mean, there’s several categories of AI that apply within the financial sphere. So how this will affect people, we can only discuss in general categories.

Specifically around skills and being effective in this new world where AI features alongside you to do certain tasks that humans were doing for quite a while. And this where that meme “learn to code” comes in. It is not meant in this sense sarcastically or derogatory, but as something that is really a skillset that people needs to get to be effective in this world.

To know how to use these algorithms. To know how to use AI more effectively. In the new AI economy, it is not going to be about elbow grease. It is going to be about knowledge and understanding the context within which to work effectively with AI.

 

 

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reference – AI: New Perspectives on Accounting and Finance

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