THE EFFECT OF ARTIFICIAL INTELLIGENCE ON THE ACCOUNTING PROFESSION

Abstract

Artificial intelligence (AI) is a part of digital technology that contributed to accounting professions. A survey conducted by Sage proven that 55% of 3,000 accountants from US, UK, Canada, Brazil, Spain, France, Australia, Ireland plan to use artificial intelligence in the next five years. However, many developing countries are still left behind in adopting the technologies. A survey conducted with over 1,050 Malaysian Institute Accountants members, response that 87% of them are never use or rarely use artificial intelligence. Economic Transformation Plan has acknowledged that the accountancy professions are among the main characters in transforming Malaysia into a high-income nation by 2020. Nevertheless, there is a severe gap between the supply and demand of professional accountants to boost the supply of accountants from 33,000 to 60,000. Despite the increase attention on the artificial intelligence, little is known on the consequences of a towards accounting professionalism. The ability of artificial intelligence in performing better job quality and efficiency has been proven in many professions including engineering, medicine, law and nursing. However, digitalisation of the accounting system is still in its early stage compared to other industries.