Question

Research and explore what is Artificial intelligence (AI) and Blockchain. Critically analyse how are they currently used in accounting and what is their potential future in the field.

Based on the article and additional research, discuss in detail in a real life scenario how AI and Blockchain can be used to advance the work of an accountant or an accounting function within an organisation.

Critically evaluate any arguments made by the author Daniel Hood in the reference article above. Do you agree or disagree? Explain your point of view and provide evidence in support of your point of view

Answer 1

In computer science, artificial intelligence (AI), sometimes called machine intelligence, is intelligence demonstrated by machines, unlike the natural intelligence displayed by humans and animals.It refers to the simulation of human intelligence in machines that are programmed to think like humans and mimic their actions.

Artificial Intelligence (AI) is the branch of computer sciences that emphasizes the development of intelligence machines, thinking and working like humans. For example, speech recognition, problem-solving, learning and planning.

There are 3 types of artificial intelligence (AI): narrow or weak AI, general or strong AI, and artificial superintelligence. We have currently only achieved narrow AI.

Currently using in Virtual Assistant or Chatbots. Agriculture and Farming. Autonomous Flying. Retail, Shopping and Fashion.Main goal is to create technology that allows computers and machines to function in an intelligent manner. The general problem of simulating (or creating) intelligence has been broken down into sub-problems.

Siri is a virtual assistant (just like chatbots) that is able to recognize voice queries, give relevant answers to user's questions, send messages and make calls.

In the agriculture sector, autonomous tractors and AI-based drones monitoring are used to enhance the productivity and crop yield of farmlands. Robots and automated machines are also used in these fields to monitor crop health conditions and harvesting.

accounting activities which AI can help with, according to Accounting Today, they are as follows:

:Enforce corporate policy. One of the top accounting functions you can perform using AI is the enforcement of corporate.

:Streamline data entry and analysis. AI can help financial managers keep better track of transactions

:Reduce the risk of fraud. Given that AI can audit up to 100% of spend reports, it can predict patterns.

Blockchain : Blockchain is the latest technology trend to follow in the wake of IoT and AI and promises a new model for traceability, supply chain transparency, compliance monitoring and auditability.Blockchain elevates manufacturing traceability and transparency to a totally new level while improving process efficiencies and reducing costs.Two-thirds (66%) of respondents are actively exploring or already using this technology to improve their business and manufacturing proceses.

Blockchain, sometimes referred to as Distributed Ledger Technology (DLT), makes the history of any digital asset unalterable and transparent through the use of decentralization and cryptographic hashing.A simple analogy for understanding blockchain technology is a Google Doc. When we create a document and share it with a group of people, the document is distributed instead of copied or transferred. This creates a decentralized distribution chain that gives everyone access to the document at the same time. No one is locked out awaiting changes from another party, while all modifications to the doc are being recorded in real-time, making changes completely transparent.

Blockchain consists of three important concepts: blocks, nodes and miners.The data in the block.A 32-bit whole number called a nonce. The nonce is randomly generated when a block is created, which then generates a block header hash.The hash is a 256-bit number wedded to the nonce. It must start with a huge number of zeroes.When the first block of a chain is created, a nonce generates the cryptographic hash. The data in the block is considered signed and forever tied to the nonce and hash unless it is mined.

Blockchain is an accounting technology. It is concerned with the transfer of ownership of assets, and maintaining a ledger of accurate financial information. The accounting profession is broadly concerned with the measurement and communication of financial information, and the analysis of said information. Much of the profession is concerned with ascertaining or measuring rights and obligations over property, or planning how to best allocate financial resources. For accountants, using blockchain provides clarity over ownership of assets and existence of obligations, and could dramatically improve efficiency.

Blockchain has the potential to enhance the accounting profession by reducing the costs of maintaining and reconciling ledgers, and providing absolute certainty over the ownership and history of assets. Blockchain could help accountants gain clarity over the available resources and obligations of their organisations, and also free up resources to concentrate on planning and valuation, rather than recordkeeping.