ARTIFICIAL INTELLIGENCE (AI)
Artificial Intelligence (AI) is becoming an important and increasingly significant contribution to organizational performance. In Artificial Intelligence (AI) and the Accounting Function—A Revisit and a New Perspective for Developing Framework, Petkov (2020) explores the introduction of AI into the financial accounting function of organizations.Read the article and address the following in a 1–2 page paper:
Discuss some of the challenges that organizations might face when attempting to implement AI in their operations.
Propose two ways small businesses might take advantage of AI so they do not fall behind in an ever-evolving business environment.
Sample Solution
- Data Acquisition and Preparation: AI algorithms require large amounts of data to train and operate effectively. This data can be difficult and expensive to acquire, especially if it is sensitive or proprietary. The data also needs to be prepared in a specific way that is compatible with the AI algorithm.
- Technical Expertise: AI is a complex technology that requires specialized expertise to implement and maintain. Organizations may need to hire or train staff with the necessary skills, or they may need to partner with a third-party provider.
Full Answer Section
- Culture: AI can change the way that organizations operate, and this can be disruptive to the existing culture. Employees may be resistant to change, or they may not understand how AI can benefit them. Organizations need to carefully manage the cultural change that comes with AI implementation.
- Security and Privacy: AI systems can be vulnerable to security breaches and privacy violations. Organizations need to take steps to protect their data and ensure that AI systems are used in a responsible way.
- Regulatory Compliance: AI systems may be subject to government regulations, such as those governing data privacy and security. Organizations need to ensure that they are compliant with all applicable regulations.
Despite these challenges, AI can offer many benefits to organizations, including:
- Improved Efficiency: AI can automate tasks that are currently performed by humans, which can free up time for employees to focus on more strategic work.
- Increased Accuracy: AI algorithms can be programmed to make decisions with a high degree of accuracy, which can help to reduce errors and improve compliance.
- Better Insights: AI can analyze large amounts of data to identify patterns and trends that would be difficult to detect manually. This can help organizations to make better decisions.
- New Opportunities: AI can create new opportunities for organizations, such as developing new products and services or entering new markets.
Small businesses can take advantage of AI in a number of ways, such as:
- Automating tasks: AI can be used to automate tasks such as bookkeeping, scheduling, and customer service. This can free up time for small business owners to focus on other aspects of their businesses.
- Analyzing data: AI can be used to analyze data to identify trends and patterns. This can help small businesses to make better decisions about their products, services, and marketing.
- Personalizing customer experiences: AI can be used to personalize customer experiences by recommending products and services that are tailored to each individual customer's needs. This can help small businesses to build customer loyalty.
- Developing new products and services: AI can be used to develop new products and services by identifying unmet needs in the market. This can help small businesses to grow their businesses.
By taking advantage of AI, small businesses can stay ahead of the competition and improve their chances of success.