Artificial intelligence

Definition

Artificial intelligence (AI) is the simulation of human intelligence processes by computer systems. In financial accounting, AI can automate complex tasks, enhance decision-making, and improve data accuracy.

5 Must Know Facts For Your Next Test

1. AI can automate repetitive accounting tasks such as data entry and reconciliations.
2. Machine learning, a subset of AI, helps in analyzing large data sets to identify trends and anomalies.
3. AI-driven tools can predict financial outcomes by analyzing historical data.
4. Natural Language Processing (NLP), another branch of AI, enables the extraction of meaningful information from unstructured data like emails and reports.
5. AI enhances audit efficiency by rapidly processing vast amounts of transactions to detect fraud or errors.

Review Questions

Related terms

Machine Learning:

A subset of AI that involves computers learning from data to make predictions or decisions without being explicitly programmed.

Natural Language Processing (NLP): A field of AI focused on the interaction between computers and humans through natural language.

Robotic Process Automation (RPA): The use of software robots to automate highly repetitive routine tasks typically performed by a human.