Module 8 podcast

Artificial intelligence (AI) is a controversial topic that has sparked debate. While some believe AI will improve human lives, others worry about the safety and potential job loss. In the accounting industry, AI will not replace CPAs but will modify their qualifications and job duties. AI automation can save time, reduce human error, and provide accurate financial information. However, there are drawbacks such as potential job loss and mistakes due to flawed algorithms. AI can enhance internal controls by detecting fraud, improving risk assessment, and automating tasks. However, ethical concerns must be addressed, including data security, bias, and accountability. It is important for accountants to understand the benefits and drawbacks of AI in order to adapt to its use in their careers. Hello, and welcome to my podcast. My name is Heather Kahlberg, and today I am going to be discussing a very controversial topic, artificial intelligence. There is little doubt that we have entered an era in which robots are taking over the world. For decades, society has predicted this. These robots have been renamed artificial intelligence. Artificial intelligence is the ability for machinery to reason and solve problems without human interference. While artificial intelligence appears to be a glorified idea since the development of smartphones, society has raised issues and worries about it. Some of the most often asked questions about AI are, does artificial intelligence actually think? Can machine learning become more self-aware? Many members of society have expressed concern about the safety of artificial intelligence, which is understandable. Artificial intelligence has sparked heated debate on both sides of the political spectrum. Raymond Cartwell, Google's head of engineering, expects that artificial intelligence will help to improve human lives, while others, such as Stephen Hawking, are concerned that these super-intelligent machines will endanger human existence on Earth. A great majority of industries have already been introduced to artificial intelligence, and accounting is one major industry that has people concerned. One issue that I'm sure arises inside the accounting field is, am I going to keep my job as a CPA? Yes. The answer is yes. While artificial intelligence has made its way into other areas, it will not totally take over the accounting industry unless firms choose to implement full-time artificial intelligence. Hussain Issa, assistant professor of accounting information systems at Rutgers Business School, does not think that artificial intelligence will replace CPAs. Instead, it would modify their qualifications and job duties that revolve around automation. For individuals interested in getting an accounting degree, artificial intelligence will also modify their skills. Accountants may be needed to take technologically advanced courses like data analytics, technology advanced inventory management, and so on. Artificial intelligence will continue to have an impact on CPAs, causing firms to gravitate towards AI fully or it be gradually implemented. Certain procedures will either become outdated or drastically change, and CPAs will need to master new AI-related abilities to keep up with the business. While artificial intelligence is a scary concept in the accounting sector, there are benefits and drawbacks to using it. Accountants are anxious about using artificial intelligence within their businesses. However, there are significant advantages to using AI. As technology has progressed, the method of data entry shifted from handwritten to entering into a computer system. The use of AI automation minimizes the need for manual data entry, human error is reduced, and accuracy is increased when repetitive jobs and algorithms are used. It saves people time while also assuring accurate financial information in their statements. Because tasks are repeated, AI can evaluate trends and monitor transactions, including fraudulent ones. All former manual processes are now driven by AI automation. If accountants use this technology, it will free up time for them to focus on more strategic activities like financial planning and analysis, allowing them to provide more insightful information to their clients. We have learned that while AI offers benefits such as increased efficiency and accuracy, it is essential to consider the drawbacks associated with AI. I touched earlier on one main concern about implementing artificial intelligence, and that is the accountant's career and the potential loss of jobs. Human accountants may be replaced or pushed to adjust their skill sets when machinery learning takes over monotonous duties such as data input and reconciliation. Professionals who have spent years honoring their specialty may find themselves unemployed or underemployed because of this. Another disadvantage of AI automation is the possibility of mistakes due to defective algorithms or inaccurate data entry. While computers are built to be accurate, they are nonetheless prone to errors due to programming flaws or wrong information given by humans. These mistakes can have serious ramifications for firms, resulting in erroneous financial statements and poor decision-making. Now, how will artificial intelligence intertwine with internal control of an organization? Internal control involves the processes that an organization implements to safeguard assets, provide accurate and reliable information, promote operational efficiency, enforce prescribed managerial policies, and comply with applicable laws and regulations. Three main functions of internal control are prevention, detection, and correction. These controls are becoming more efficient and effective when AI is used, particularly in fraud detection. Traditional techniques of detecting fraudulent activity frequently rely on manual data examination, which may be time-consuming and error-prone. AI-powered systems, on the other hand, can examine massive volumes of data in real-time, discovering trends and abnormalities that may signal fraudulent activities. This helps firms to recognize and respond to suspected fraud more rapidly. In addition, AI can improve risk assessment by examining previous data and forecasting future dangers. Organizations can discover possible areas of vulnerability or weakness in their internal control systems by employing machine learning techniques. This enables them to handle these concerns before they become serious difficulties. Furthermore, AI may automate typical internal control duties like transaction monitoring and account reconciliation. This not only saves time but also lowers the possibility of human mistakes. It is crucial to emphasize, however, that while AI provides various benefits for internal controls, there are also obstacles that must be handled. Critics are concerned about the ethical behaviors with AI. One form of internal control is implementing a code of ethics, which is a formal expectation on what is ethical within an organization to promote ethical behavior. Unethical behavior has been exposed within the accounting industry in years past and is still practiced today. While machines are capable of learning new patterns without human intervention, there are aspects of human thought and perception that machines struggle with, one of those being ethics. Examples of the ethical risks include those related to data security and privacy, expectation gaps, accountability, bias, auditor competency, and audit quality standards. So, with that being said, thank you all for joining my podcast today regarding AI automation within accounting. I hope this provides more insight into the advantages and disadvantages of artificial intelligence and how you can become more acclimated to artificial intelligence within your accounting career.