ABSTRACT
The overarching theme of the digital technologies and concepts covered in this chapter is the design, use, and optimization of information systems and applications that can sense, comprehend, and recommend or take action. The design and use of such digital technologies and concepts is collectively referred to as artificial intelligence (or AI for short). Artificial intelligence includes but extends far beyond familiar AI technologies like robots, smart devices, chatbots, and virtual assistants. AI is set to fundamentally transform how products and services are delivered and how the organizations delivering these products and services operate. AI technologies and related concepts offer organizations significant efficiency opportunities (e.g. using AI to perform routine tasks that can be automated through “if this, then that” rules), effectiveness opportunities (using AI to augment human decision-making to make better value delivery decisions), product and business model innovation opportunities (e.g. using AI to create new AI-based products and services such as automated analysts, digital assistants, robots, AI-augmented services, data management services, etc.), scalability opportunities (e.g. being able to offer automated AI-based services, 24/7, worldwide), and adaptability and agility opportunities (e.g. leveraging AI’s sensing and intelligence capabilities to anticipate disruptions and opportunities, better adapt to disruptions, or seize opportunities first). Accountants can play a critical role in supporting organizations to transform into true AI companies that leverage the full benefits of AI in a safe, efficient, and effective manner. In this chapter, we provide accountants with an understanding of the foundations, functioning, opportunities and threats, use cases, and accounting practice implications of artificial intelligence and related technologies and concepts.
