Episode 420: The New Role of Artificial Intelligence in Rev Rec and Lease Accounting

Innovation InsightsWith Donny ShimamotoCenter for Accounting TransformationToday's Take-aways:Accountants were the pioneers of business use of database software with the accounting systems—the first wave of accounting technology. The second wave was the move into the cloud, and the third wave now uses AI in accounting technology.AI uses Optical Character Recognition (OCR), and Natural Language Procession (NLP) can be used to read documents like PDFs and Excel and extract the relevant data like lease dates into the database where they can be used for computations or searching.Because you’re starting with the source document (e.g. PDF, Excel) and extracting the data from there to then put the data into the system, you can trace data back all the way to the source document all within the same system (not just to the point where someone keyed the data into the system).The goal isn’t for the machines (AI) to do everything,, but instead to complete 70-80% of the grunt work and allow the accountant or auditor to focus on the analytics and strategic work.Small and regional firms can gain an advantage by partnering with accounting technology vendors, enabling them to innovate and incorporate technology into their services more quickly than the larger firms.