Table of Contents

Artificial Intelligence ...................................................................................................................... 2

Definition .................................................................................................................................... 2
Relation to accounting ................................................................................................................. 2
Technology that can possibly be utilized .................................................................................... 4
Data Science.................................................................................................................................... 6
Definition .................................................................................................................................... 6
Relation with accounting ............................................................................................................. 6
Technology that can possibly be utilized .................................................................................... 7
Bibliography ................................................................................................................................. 10

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Artificial Intelligence

Definition

Artificial intelligence (AI) is an area of computer science that emphasizes the creation of

intelligent machines that work and reacts like humans.

Artificial intelligence must have access to objects, categories, properties and relations

between all of them to implement knowledge engineering. Machine perception deals with the

capability to use sensory inputs to deduce the different aspects of the world, while computer

vision is the power to analyze visual inputs with a few sub-problems such as facial, object and

gesture recognition. Robotics is also a major field related to AI. Robots require intelligence to

handle tasks such as object manipulation and navigation, along with sub-problems of

localization, motion planning and mapping.

Relation to accounting

Artificial intelligence is poised to transform the finance and accounting industries with

advancements that eliminate tedious tasks and free up time for financial staff to prioritize higher

impact responsibilities. Here are ways these advanced technologies can take the grunt work out

of accounting tasks:

1. Streamline data entry and analysis

Artificial intelligence helps financial managers stay on top of transactions amid systems

that are tedious and time-consuming. Instead of financial data spread out over multiple

documents, PDFs and spread sheets, machine learning — a branch of artificial intelligence

— extracts data from receipt images, automatically classifies it based on spend category and

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populates reports for analysis in one place. These comprehensive reports can provide

businesses with smart insights to improve financial planning.

2. Reduce fraud

AI can audit up to 100 percent of spend reports. By predicting patterns and detecting a

wide range of anomalies in financial data, AI can help auditors catch fraudulent spending

before reimbursement occurs. Because it’s scalable, AI can also easily handle influxes in

financial data with the same level of accuracy. In fact, analyzing more data makes it smarter

and better at tackling financial fraud.

3. Faults of human error

While human intuition is its own cognitive wonder, with particularly advanced

capabilities in adaptability and flexibility, it has its limits. The human brain is constantly

bogged down by its own inconsistencies and biases, with things like availability bias and

confirmation bias proving to be costly in industries and decision-making of all kinds.

Machine learning is here to automate and inform the time-consuming and redundant tasks

accountants do on a day-to-day basis, which subsequently frees up their time to focus more

on lucrative and in-depth analysis.

4. Procurement

The tracking and procuring method for many companies is filled with paperwork and use

different file formats which may not be compatible with each other. However, machines with

APIs can be integrated, and unstructured data can be processed. This makes the procurement

process paperless and easier. With the help of AI, one can easily track the changes in price

among multiple suppliers.

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 5. Expense management

Reviewing and approving all the expenses to make sure that they are compliant with the

company’s policies can be a time-consuming process. AI makes it much easier as machines

can check receipts, review expenses, and warn people if there is any breach.

Technology that can possibly be utilized

 Botkeeper

Botkeeper provides automated bookkeeping support to businesses by using a powerful

combination of skilled accountants alongside machine learning and artificial intelligence (AI).

This automated bookkeeping software combines your various data sources while applying

rules, processes, and calculations to give you the most insightful custom reporting and

dashboards, while also eliminating costly and error-prone manual accounting. Botkeeper would

be extracting data from receipts, processing payroll, paying bills, sending invoices, reconciling

accounts, and generating beautiful reports – so you have more time for what matters most to your

business. It can be your first bookkeeper, work hand-in-hand with your current team, or even

replace the need for an entire accounting department.

The Botkeeper “bot” is much more limited than a human bookkeeper. It can’t search outside

the Botkeeper database of transactions to figure out how to code a transaction. It doesn’t do

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journal entries such as month-end accruals or deferrals. It doesn’t administer the payroll system

and it doesn’t pay bills or project cash flow. It doesn’t do revenue recognition and can’t prepare

bank reconciliations. A human must complete that workflow manually.

 Odoo

Odoo is a suite of open source business apps that cover all of a company’s needs. It has the

following features:

1. Get your bank statements synced with your bank automatically, or import files

2. Create sharp and professional invoices, manage recurring billings, and easily track

payments

3. Easily create your earnings report, balance sheet or cash flow statements

4. Synchronize every transaction with your stocks to keep your valuation up to date

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Data Science

Definition

Data science is the field of study that combines domain expertise, programming skills,

and knowledge of math and statistics to extract meaningful insights from data. Data science

practitioners apply machine learning algorithms to numbers, text, images, video, audio, and more

to produce artificial intelligence (AI) systems that perform tasks which ordinarily require human

intelligence. In turn, these systems generate insights that analysts and business users translate

into tangible business value. At its core, data science is a field, or perhaps an approach, that lies

at the intersection of three things: 1) computer programming skills; 2) mathematical and

(especially) statistical skills; and 3) domain expertise.

Relation with accounting

The success of financial reporting lies with finance and accounting professionals, with a

solid understanding of how profit flows, to acquire the tech skills necessary to be able to extract

the profitable insights that are hidden in transaction databases—by utilizing data science. Here

are ways these advanced technologies can take the grunt work out of accounting tasks:

1. Advanced revenue analytics

The fastest way to add profit to the bottom line is through smarter pricing and sales

channel optimization. Knowing how to find inefficiencies in a company’s pricing structure is

an invaluable skill set, but you need to know how to get the right information and apply the

right math. The most valuable analysts know how to find the right data set to explore any

revenue question.

2. Mathematical optimization

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 The end game of data science is to find the set of decisions that are the most optimal to

achieving long-term profitability, whether the solution has to do with increasing revenue or

decreasing costs or both. As the domain experts on the P&L, accountant should be able to

direct managers on how to tweak their tactics in order to create the most contribution. You

must understand the algorithms of mathematical optimization and how to use them properly

to provide creative solutions to unravelling the puzzle of achieving higher profit.

3. Visualization

This means the ability to reformat data insights for easy consumption depending on the

audience. Being able to use various software applications and special functions and graphs

to aggregate and present the same data from many different perspectives so that insights can

be identified easily is fundamental to navigating today’s complex business cycles.

Technology that can possibly be utilized

 RapidMiner

RapidMiner is a tool for the complete life-cycle of prediction modelling. It has all the

functionalities for data preparation, model building, validation, and deployment.

Financial institutions are under relentless pressure. RapidMiner enables financial services

companies to do more than just withstand these pressures. Financial companies can reinvent

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every critical business process from evaluating and pricing risk to personalizing the customer

experience through the following means:

1. Reduce churn by predicting at-risk customers in time to proactively prevent attrition

2. Forecast economic conditions with sophisticated scenario modeling

3. Reduce settlement errors by monitoring transactions for early detection of problems

4. Reduce bad debt through early identification of problem signs

Manufacturers are gradually embracing cyber-physical systems and use all available data and

predictive analytics to innovate every aspect of their business. Those that don’t will find

themselves quickly outperformed by aggressive and nimble competitors emerging from around

the world. Manufacturers must use machine learning to design smart products, run smart

factories, forecast demand, ensure quality, reduce production downtime and manage supply

chain risk. RapidMiner empowers manufacturers to dramatically improving core operational

functions and helping products, brands and service stand out in the marketplace through the

following ways:

1. Predict and forecast demand to allocate resources most profitably

2. Create intelligent, connected products that generate new and innovative business models

3. Optimize production while keeping costs low and product quality high

4. Manage production risks to ensure smooth, consistent product delivery

 DataRobot

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 DataRobot lets you accelerate your AI success today with cutting-edge machine learning and

the team you have in place. The platform incorporates the knowledge, experience, and best

practices of the world’s leading data scientists, delivering unmatched levels of automation,

accuracy, transparency, and collaboration to help you create an AI-driven enterprise.

With DataRobot you empower your existing team to build and deploy highly accurate

machine learning models in a fraction of the time it takes using traditional data science methods

– allowing your organization to scale data science capabilities quickly. DataRobot chooses the

most appropriate machine learning algorithms, then automatically optimizes data pre-processing,

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feature engineering, and tuning parameters for each algorithm to create and rank highly accurate

models.

DataRobot offers superior interpretability so you can easily understand how models were

built as well as explain why a model made the prediction it did - confidently. With DataRobot,

too, you get one unified platform designed for a range of users; fostering collaboration and

ultimately building an AI culture across your organization.

Bibliography

Top 10 Data Science Tools In 2019 To Eliminate Programming. (2019, July 2). Retrieved July
20, 2019, from Software Testing Help: https://www.softwaretestinghelp.com/data-
science-tools/

Accounting Features. (n.d.). Retrieved July 20, 2019, from Odoo:

https://www.odoo.com/page/accounting-features

Accounting Overview. (n.d.). Retrieved July 20, 2019, from Odoo:

https://www.odoo.com/page/accounting

Data Science. (n.d.). Retrieved July 20, 2019, from DataRobot:

https://www.datarobot.com/wiki/data-science/

Financial Services. (n.d.). Retrieved July 20, 2019, from RapidMiner:

https://rapidminer.com/industry/financial-services/

Hernandez, R. (2019, March 8). The 7 Data Science Skills That Will Change the Accounting
Career. Retrieved July 20, 2019, from Origin World Labs:
https://www.originworld.com/2019/03/08/7-data-science-skills-that-will-change-
accounting-career/

Homepage. (n.d.). Retrieved July 20, 2019, from Botkeeper: https://www.botkeeper.com/

Mann, A. (2019, February 8). How AI is transforming the jobs of accountants. Retrieved July 20,
2019, from Accounting Today: https://www.accountingtoday.com/opinion/how-ai-is-
transforming-the-jobs-of-accountants

Manufacturing. (n.d.). Retrieved July 20, 2019, from RapidMiner:

https://rapidminer.com/industry/manufacturing/

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Oliver, B. (2019, February 25). It’s not a bot — the truth about Botkeeper, the Google-funded,
AI-powered “bookkeeper replacement”. Retrieved July 20, 2019, from Blake Oliver
Blog: https://www.blakeoliver.com/blog/what-is-botkeeper

Platform. (n.d.). Retrieved July 20, 2019, from DataRobot: https://www.datarobot.com/platform/

Rana, R. (2018, September 11). How Artificial Intelligence Will Impact the Accounting Industry?
Retrieved July 20, 2019, from Ace Cloud Hosting:
https://www.acecloudhosting.com/blog/artificial-intelligence-impact-accounting/

Saxton, G. (2018, October 27). What is Accounting Analytics? Retrieved July 20, 2019, from
Social Metrics: http://social-
metrics.org/accountinganalytics/#Data_Analytics_vs_Data_Science

Vordenbaeumen, H. (2019, April 24). 3 ways accountants can implement AI today. Retrieved
July 20, 2019, from Accounting Today: https://www.accountingtoday.com/opinion/3-
ways-accountants-can-implement-ai-today

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Artificial Intelligence, Data Science and Accounting

Written Report

Submitted by:

Acojon, Nicah P.

De Guzman, Randz Clemen Bert C.

Marbella, Gracelyn T.

Regala, Verlie

BSA 2-1

Submitted to:

Mr. Florante V. Andres

GEED 20013

Living in the IT Era

A.Y. 2019-2020

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