What are AI and Blockchain Technologies?
Question:
Discuss about the Artificial Intelligence and Blockchain for Security Review.
AI and Blockchain can be tagged as a major landmark in the field of technology that has led to various benefits. Both these topics have a very different meaning and the impact they put on the daily life activities. Blockchain can be explaining as a form of a ledger, but more secured and with a divided concept. A transaction held in a Blockchain is updated very quickly with the transaction getting terminated as soon as it is finished. Using Blockchain relieves the management of any outstanding transactions and the settlements are done on the go and very quickly. This also prevents manipulation that could have been done with the earlier records and data.
AI is a computer programming which can do the labor tasks that ease which would otherwise require human help. Accumulation of data that is generally hard to be sort can be given to the AI for performance results. AI can very effectively decrease the time required to do the same work by humans for some days or a few hours that would require weeks to be done. As for now, it would not be wrong to say that the AI would take more tasks upon itself as from the humans. The accounting field has been using technology for quite a long time now and the use of an effective AI would certainly bring a new phase for the standards and investments of the business, which is always the main priority (Carusi & Jirotka, 2009). For acquiring, such levels the management has to see that how the loopholes existing in the business can be treated with the use of technology that will take the stakes higher. This can also prove to be a good potential test for the AI systems.
Systems that are more intelligent enable completely different approaches to this ultimate objective and the kinds of fundamental business problems the profession aims to solve. Investors should have faith in the financial results of companies; companies and governments need to ensure the correct levels of tax are paid; management to decide how to spend assets. Solving these kinds of fundamental problems is essential for the companies (Hood, 2018).
As time passes by, the AI into the systems will evolve and will be able to ensure that the work done is in coordination with the rules, regulations and other enterprise policies. Invasion of the human privacy has also been a topic with the AI as thought by many people as they think that human behavior, working skills, and patterns would be learned by the AI with its ‘machine learning adaptive’ trick. Blockchain’s working can be thought of as a divide and rule concept associated with the ledger. In this system of working, each user can individually view, change and log any recorded transactions (Hood, 2018). However, the ledger is not in the hand of one person but all the users connected to the network. Any change made in the ledger will require a permission grant by all the users connected and this is how the data is saved from being manipulated and is totally secured. This system of working would surely effectively reduce the enterprise cost and also the pressure to maintain bookkeepers and accountants.
Benefits of AI and Blockchain Technologies on Accounting
The Blockchain system will surely cause an accounting market upset by its skills and will make some professional services outdated. If a certain transaction is stored in Blockchain then it cannot be manipulated. If it happens that any change is made then that particular change will be visible to all the users and thus the data cannot be altered. This process of working makes auditing simple and reduces the probability of any errors. Some of the workings of the accounting will surely disappear but the removal or replacement of the auditors cannot be said. Every transaction stored in the Blockchain is verified and is passed by both parties and so it reduces the workload to store those transactions in two different ledgers maintained by the parties. It also has a triple entry system wherein the transaction stored in stored in both the ledgers and the stack of the Blockchain also.
Security of the Blockchain system is very tight and once the data is saved then it is impossible to manipulate it. This is possible because of the strong encryption program stored at its base that will not allow any data to be altered in any way without any type of authorization any without any knowledge to the other users (Hood, 2018). To prepare for the Blockchain technology the following must be undertaken
- The growth of the Blockchain is inevitable but the main question is when that will happen. So it is advised by the auditors and management to become familiar with the working of the Blockchain system.
- If someone’s business depends on accounting or auditing related fields then it is advised that to invest and route the business to different directions that will incur more profit and all the data and transaction will be kept up-to-date in the Blockchain smoothly. Accountants can come up with new ideas and with the help of Blockchain; the business will reach extremely new heights. Blockchain has been totally approved and still some queries prevail about its usage and so the auditors and the accountants all should contribute their ideas and views in the discussion so as to drive a single movement (Tucker et. al, 2011). The accounting fields where AI and Blockchain can be used are enormous and never-ending but all this will be good and up-to-the-mark as the processes that prevail now (Rud, 2009). So it is advised that tally the previous data but in accordance and respect with the AI and Blockchain which will provide a fair idea that how and where their usage will help the team. AI is common and can be seen to be used in many big enterprises (Barney & Ray, 2015). For example, the usage of AI would reduce so much work as it would compile, analyze, and store all the documents and the user will only be left with the job of decision-making.
It is no mystery that proper implementation of AI would result in improved productivity and excellent resource management. Accountants all over the world are already using multiple software tools from CRM systems to business process management tools, to make better-informed decisions. Deloitte recently published an article that was quoted as ‘what artificial intelligence can do that included the surplus resources and ways that are provided by this process of work which can help the business to reach profitable heights and reduced the incurred costs (Junk, 2015).
AI backed investment management or automated wealth managers are more likely to offer sound financial advice without having to bring aboard a full-time advisor. The reactive cognition based benefits of AI has piqued the interest of the global investment community as well. Bridgewater Associates, one of the biggest hedge fund managers in the world, have already developed AI backed trading algorithms, which are capable of predicting market trends based on historical and statistical data (Azmi, 2011).
There have been many advancements and in the field of technologies that have a huge influence in the field of accounting. The fields of accounts have been widely influenced by the web-enabled communication, mobility and the cloud. This ascertains the fact that with the due passage of time there will be more dependence on the software counterpart (Peter et. al, 2013). The use of cloud technology is another important landmark in the field of technology that is strongly embraced by the accountants (Barney & Ray, 2015). The major portion of the business operation is hosted in the cloud. The presence of such technology leads to greater cost benefits, mobility, and agility in the IT infrastructure (Tsai et.al, 2011). The firms that will use loud have more benefits as compared to other firms in terms of maintenance, updating, and other host services. Such features will help in the field of accounting. Moreover, there are further choices when it comes to the cloud platforms that are public, private, and hybrid. Public cloud is the fastest cloud segment and dominated by Amazon, Google, and Microsoft (Ma, 2010). When it comes to public cloud, the services are standardized and deliver relentless service who has the same infrastructure. By using a private cloud service provider, the accountant can take advantage of the IT resources that are shared across multiple applications. Hybrid is the combination of the public and private cloud platform. It can be of immense use for expansion, however, in terms of set up and operations it is potential to go wrong. It needs more downtime and the cost involved is higher (Chugh & Ganndhi, 2013).
Hence, from the above discussion, it is seen that the development in the field of technology has benefitted the accountants at large. The presence of new and improved mechanism can be used as a potent tool for the process of reporting. As time passes by, there will be more changes ensuring further positive impacts in the accounting field.
References
Azmi, I.M. (2011) Bioinformatics and genetic privacy: the impact of the Personal Data Protection Act of 2010. Computer Law & Security Review [online]. 27(4), p. 394-401. Available from https://doi.org/10.1108/JEIM-04-2014-0040
Barney, J. and Ray, G. (2015). How information technology resources can provide a competitive advantage in customer service. Planning for Information Systems [online]. 3(2), p. 444-460. Available from: DOI: 10.4236/me.2015.63038
Carusi, A. and Jirotka, M. (2009) From data archive to ethical labyrinth. Qualitative Research [online]. 9(3), p. 285-298. Available from: https://journals.sagepub.com/doi/abs/10.1177/1468794109105032
Chugh, R & Gandhi, S. (2013). Why Business Intelligence? Significance of Business Intelligence tools and integrating BI governance with corporate governance. International Journal of E-Entrepreneurship and Innovation [online] 4(2), p.1-14. Available from: https://sdiwc.net/digital-library/download.php?id=00000691.pdf
Hood, D. (2018) Brace yourself for AI & blockchain: There’s less threat and more opportunity in emerging technologies than many think. Accounting Today [online]. 32(1), p.1&30-31. Available from: https://www.accountingtoday.com/news/accountants-need-to-brace-themselves-for-ai-and-blockchain
Junk, D. (2015). Business Intelligence vs Analytics vs Big Data vs Data Mining. Retrieved April 28, 2017 from https://blog.apterainc.com/business-intelligence/business-intelligence-vs-analytics-vs-big-data-vs-data-mining
Ma, Z. (2010) The SINS in business negotiations: explore the cross-cultural differences in business ethics between Canada and China. Journal of Business Ethics. [online]. 9(1), p. 123-135. Available from: https://hdl.handle.net/10.1007/s10551-010-0571-5
Peter, R, Alaa S and Aladdin A. (2013) Business Intelligence and Performance Management: Theory, Systems, and Industrial Applications, Springer Verlag U.K
Rud, O. (2009) Business Intelligence Success Factors: Tools for Aligning Your Business in the Global Economy. Hoboken, N.J: Wiley & Sons.
Tsai, J.Y., Egelman, S., Cranor, L. and Acquisti, A. (2011) The effect of online privacy information on purchasing behavior: an experimental study. Information Systems Research [online]. 22(2), p. 254-268. Available from: https://www.heinz.cmu.edu/~acquisti/papers/acquisti-onlinepurchasing-privacy.pdf
Tucker, A. (2017) 5 technology trends set to impact accounting most. [online]. Available from: https://www.accountantsdaily.com.au/columns/10008-5-technology-trends-set-to-impact-accounting-most [Accessed 21 April 2018]
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