Artificial Intelligence is a revolutionary technology that is transforming everything that it touches. It is already used in various healthcare, education, and home automation fields. AI is expected to have a significant impact on the way we live and work. 

Artificial intelligence is a vital component of every aspect of our lives. From here on out, it will play a huge role in almost every aspect of our lives, whether smartphones, televisions, smart speakers, or wearable devices.

This raises the question – where else does AI affect our lives? One hidden potential is the effect AI can have on the financial industry.

AI and Accounting

Developers of AI use continuous improvement to create systems capable of performing various tasks and functions without requiring human intervention. AI can also work around the clock. It’s easy to see how AI could boost the equations needed for financial institutions.

Primarily, there are three ways in which AI can impact accounting. These methods are invisible accounting, continuous auditing, and active insight.

  • Invisible Accounting – Through the use of AI, accountants can gain a deeper understanding of the operations of their organizations. This can help them make better decisions and improve their efficiency.
  • Continuous Auditing – AI does not need to take breaks. Therefore auditing can occur around the clock without dropping in quality.
  • Active Insight – Financial managers and leaders can better view their company’s financials.

Streamlining the Process

One of the most significant advantages of using AI in the financial industry is its ability to automate the tasks typically performed by a financial analyst. Machine learning, for instance, can analyze and classify various documents, such as receipts, excel sheets, and images.

Fraud Reduction

Today, employees spend a lot of time and money on various platforms, which makes it easy for them to fall victim to fraud. According to an association of certified fraud investigators, a company loses a significant amount (five percent) of its money due to internal fraud.

Unfortunately, auditors can only estimate up to ten percent of the expenses submitted annually. With AI, they can now thoroughly audit all of these documents and detect fraud before they are reimbursed.