Artificial Intelligence (AI) is rightly viewed as a game-changer in many industries, including accountancy. There’s no denying that AI offers incredible potential for sparking a productivity revolution in the world of accountancy. It’s efficient, it’s precise, and it can work around the clock without breaks.
However, those who believe AI will render accountants and the process of outsourcing/offshoring obsolete may not fully understand the nature and complexity of accountancy, nor the limits of AI.
How AI works
But the first step in understanding why AI cannot completely replace human accountants is to look at how AI works. AI is fundamentally based on probabilistic predictive models. This means it processes vast amounts of data to identify patterns, make predictions, and carry out tasks based on the algorithms developed by its human creators. It is superb at processing large volumes of data at speeds no human could ever match.