Artificial intelligence

Question 1

artificial intelligence

Answer 1

is the making of intelligent machines and computer programs whilst using a stimulation of human intelligence processes.

Question 2

AI tries to understand human intelligence…

Answer 2

as a means of thinking and acting like them

Question 3

Machine Learning

Answer 3

is an important subset of AI as it involves the process of building a model to train machines to make decisions and behave without actually being told to do so.

Question 4

ML

Answer 4

the computer programs automatically adapt to new data without the assistance of humans.

Question 5

what sectors is AI used regularly in?

Answer 5

finance, accounting and healthcare

Question 6

uses of AI in our daily lives

Answer 6

voice programmed software’s such as Siri and Alexa

Question 7

advantages of AI

Answer 7

Reduction in human error
Unbiased decisions

Question 8

Reduction in human error

Answer 8

due to the nature of AI, human errors are significantly reduced and accuracy and precision are increased.

Question 9

Unbiased Decisions

Answer 9

human beings are driven by emotions which means they can make decisions that are biased. the use of AI can ensure that the approaches to processes are rational and that any biased views are eliminated.

Question 10

example of unbiased decisions within the accounting practice

Answer 10

using AI to help with the auditing process.
AI can help analyse data in an accurate and reliable way which ultimately lowers the chances of audit risks occurring.

Question 11

Disadvantages of Artificial Intelligence

Answer 11

high costs
reduction in human contribution

Question 12

high costs

Answer 12

costs incurred to develop a program that mimics human intelligence can be high.
requires lots of time and resources in its development stage.
may be unreasonable for some companies and business sectors to adopt.

Question 13

Reduction in Human Contribution

Answer 13

there is a risk that humans may become lazy and heavily rely on AI.
this reduction in contribution can cause problems for future generations as we will begin to use our brains less and less because we have an automated system doing the work for us.

Question 14

Impact of AI on the accounting profession

Answer 14

can be applied to many aspects of the accounting process. since accountants want to improve efficiency and provide more insightful information to clients, the use of AI may be really transformative for the profession.

Question 15

positive impact on the accounting profession

Answer 15

can be used to improve audit and financial processes.
can help organise information in a much timlier manner, whilst reducing the chances of human error.
this would provide clients with more accurate information since it would be easier to detect misstated information.

Question 16

Negative impact on accounting profession

Answer 16

risks of unemployment due to robots doing the tasks that humans were once needed for.

Question 17

ICAEW (2022)

Answer 17

highlights that accounting firms will be cut down in size and that the employees left will most likely be focussing on initiatives and process improvements