Accounting AI and Machine Learning: Applications and Challenges

In the context of accounting, AI and machine learning technologies - embedded in existing applications or combined with other technologies such as robotic process automation (RPA)4 - are expected to automate a significant part of the mundane tasks performed by CPAs today, such as document and data collection from clients and third parties; document recognition and classification; data extraction from documents and entry into accounting, auditing, tax, or other systems; approvals (such as invoice or expense approvals), confirmations, and reconciliations; computations and analysis (from trend analysis to predictive analytics); and answering inquiries. At its latest annual business summit in Philadelphia, EisnerAmper LLP discussed its progress in implementing IBM Watson's capabilities in auditing and tax, primarily to automate tasks related to document review and data analysis.6 The firm also presented a video showing an AI-enabled RPA solution it recently implemented as an illustration of advanced business process automation in action, from the digital capture of an accounts payable invoice to its processing. According to a recent Forbes article, Deloitte is using natural language processing to review hundreds of thousands of legal documents to identify change control provisions as part of a client's sale of a business unit. [...]accounts payable invoice processing is typically a manual process that requires input from multiple departments. [...]payments on invoices are often delayed and, as a result, business can be disrupted and opportunities for discounts on payments are missed, resulting in higher costs for the organization.