Question

Definition of Artificial Intelligence in computerized accounting ?

Answer 1

Artificial Intelligence in computerized accounting:

Artificial Intelligence (AI) is helping in the development of accounting system as a basis for comparative organizational analysis of the impact of expert systems on organizational issues. The study analyses the relative impact of AI on two different types of accounting works—auditing and tax. Accounting tasks involve a wide range of structured, semi-structured and unstructured decisions. The heart of auditing and assurance involves the less-structured decisions and analyses that include much uncertainty caused by risks and lack of information. The discussion indicates an impact on factors that ultimately improve productivity. In aggregate, it indicates that expert systems are found to allow the user substantial control of search for solutions and discretion on whether to follow system recommendations, increased access to top management, and a decrease in the need for supervision.

Accounting information systems moved out of the arena of paper journals and ledgers and entered computer-based formats with the advent of computers. Unfortunately, in many cases, all that was done was to develop the computerized systems that the computers used as a more efficient type of paper processor or calculator. Consequently, in many cases, accounting databases have become vast storehouses of limited information about specific accounting transactions. As a result, these systems do not meet the needs of decision makers. One approach to this problem is to integrate Artificial Intelligence (AI)—that emphasizes the creation of intelligent machines that work and react like humans including speech recognition, learning, planning and problem solving—into accounting databases to try to develop systems that mitigate the difficulties of traditional systems. Although accounting database theory has received substantial attention, little work has been done on the application of AI to accounting.

We can say that Artificial Intelligence (AI) is one of the most advanced technologies in the world and it is a replacement of human capabilities for the better.