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How Artificial Intelligence Is Challenging Accounting Profession

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  • Eleonora P. Stancheva-Todorova

Abstract

Recent developments in robotics and artificial intelligence and their applications have started to reshape our world, bringing it closer to what famous futurologists as Jules Verne and Isaac Asimov have predicted some decades ago. Many aspects of our lives are changing due to technological innovations. Businesses are now exploring new opportunities for raising profitability and return on capital ratio through revenue increase, cost reduction and new sources of value creation, trying to overcome the negative long-lasting effects of the World Financial Turmoil from 2007 - 2008 and aiming to become more competitive and sustainable. The “artificial vs. human intelligence” dilemma widely debated among academics and practitioners, encompasses many controversial issues related to the future prospects of some occupations, the required new skill set and competences, the way humans and machines could work efficiently and effectively together. Accounting profession is on its way to make a great change of the role it plays in the organization and the functions it currently performs. The proponents of artificial intelligence revolution view this development as a step-ahead and embrace the challenges of the future. The opponents, on the other hand, consider it a step-back as many accountants will fail to adapt to this new business environment and will drop behind. This paper is aiming to discuss few of the challenges facing the accounting profession nowadays and to shed light on some possible trends of its future development in the artificial intelligence context. Some conclusions related to accounting education will be drawn from the perspective of the new intelligent technologies and their business applications.

Suggested Citation

  • Eleonora P. Stancheva-Todorova, 2018. "How Artificial Intelligence Is Challenging Accounting Profession," Economy & Business Journal, International Scientific Publications, Bulgaria, vol. 12(1), pages 126-141.
    • Handle: RePEc:isp:journl:v:12:y:2018:i:1:p:126-141
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    References listed on IDEAS

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    2. Sutton, Steve G. & Holt, Matthew & Arnold, Vicky, 2016. "“The reports of my death are greatly exaggerated”—Artificial intelligence research in accounting," International Journal of Accounting Information Systems, Elsevier, vol. 22(C), pages 60-73.
    3. Pandula Gamage, 2016. "Big Data: Are Accounting Educators Ready?," Journal of Accounting and Management Information Systems, Faculty of Accounting and Management Information Systems, The Bucharest University of Economic Studies, vol. 15(3), pages 588-604, September.
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    Cited by:

    1. Mihaela Ionela Socoliuc, 2023. "The impact of digitalization on the accounting profession in Romania - a quantitative research," Journal of Financial Studies, Institute of Financial Studies, vol. 15(8), pages 132-154, December.
    2. Brown, Paul & Ly, Tuan & Pham, Hannah & Sivabalan, Prabhu, 2020. "Automation and management control in dynamic environments: Managing organisational flexibility and energy efficiency in service sectors," The British Accounting Review, Elsevier, vol. 52(2).
    3. Ovidiu-Constantin BUNGET & Cristian LUNGU, 2023. "A Bibliometric Analysis of the Implications of Artificial Intelligence on the Accounting Profession," CECCAR Business Review, Body of Expert and Licensed Accountants of Romania (CECCAR), vol. 4(5), pages 65-72, May.

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    Keywords

    artificial intelligence; challenges; accounting profession; accounting education;
    All these keywords.

    JEL classification:

    • A - General Economics and Teaching

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