Probing The Effect of Artificial Intelligence and Machine Learning on Accounting Functions (Evidence from Selected Companies).

International Journal of Research and Innovation in Applied Science (IJRIAS) | Volume VII, Issue II, February 2022 | ISSN 2454–6194

Probing The Effect of Artificial Intelligence and Machine Learning on Accounting Functions (Evidence from Selected Companies).

Onwughai, Emelenjor Austin
Department of Accounting, Finance and Taxation
College of Post Graduate Studies
Caleb University, Lagos.

Abstract: Artificial intelligence technology has no doubt gained ground in the field of accounting and in the performance of several routine functions. This is going to be a growing phenomenon as the entire world continues to seek for ways to use and depend more on technology and machines to perform functions hitherto done by humans, especially with the new normal of remote work brought to the fore by the COVID-19 global pandemic. This study focuses on the impact of the adoption of artificial intelligence and machine learning technologies on the accounting functions of business organisations. Survey questionnaire in addition to qualitative literature review was used to gather data from respondents and analyse previous academic and professional works on the subject. The result of this study shows that, although artificial intelligence technology will be used to replace most programmable and monotonous accounting activities, AI will also create new opportunities for the upward mobile accounting professional to grow into more strategic and rewarding carrier path rather than just being a ‘book keeper’. However in the case of companies in Nigeria specifically, the regression model is not significant since the probability value 0.846 is greater than 0.05 meaning that the null hypothesis is not rejected, implying that there is no significant statistical relationship between AI and accounting functions of Nigeria companies. The recommendation of this study is that accountants, business entities and relevant government agencies should seek for ways to profitably tap into new growing arena of artificial intelligence rather than being in denial of its impact or trying to suffocate a technology that has come to stay.

Keywords: Artificial Intelligence, Machine Learning, Accounting Functions,

I. INTRODUCTION

The accounting profession has witnessed significant transformation over the years up to migrating from fully manual routine activities to substantially automated processes. With the rapid development of artificial intelligence (AI) and machine learning (ML) technologies, the profession no doubt is about to witness a paradigm shift in the way it is practiced. For example, the not too distant transition of Nigerian financial institutions from manual to semi-automatic and then to full computerisation no doubt improved delivery of financial and banking services including savings in man hours, it also led to massive loss of jobs, especially by old-school financial sector works and bankers, to computers and communication systems. It is comedy now to remember that there was a time in Nigeria when customers literally went to the banking halls with their mats and pillows in anticipation of a long wait for their tally numbers to be called. This was when banks official closing time was around one o’clock in the afternoon to enable them manually balance their accounts and close their ledgers for the day. We are not also quickly forgetting those days when you must visit the physical location of your specific bank branch to do any transaction on your account. These primordial practices have since given way to technological innovations. The introduction of cutting edge technologies like internet transfers, mobile banking, and short-code coupled with ATM machines and POS facilitated agency banking, it is becoming obsolete to visit bank branches in person except for some very special transactions requiring face to face interactions. This is even as newer technologies like AI will soon take over from today’s novelty methods.
Parloff, (2016) as cited in Eleonora, (2018) posited that artificial intelligence comprises any system that enables machines to imitate the natural intelligence of humans and includes machine learning and deep learning, being part of the branches of AI. It is of utmost importance to scrutinize the activities content of the accounting function in order to verify which functions are capable of and will likely be taken over by intelligent machines and which areas human accountant is needed to explore and expand together with the skill sets required for the new era of accounting.

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