ARTIFICIAL INTELLIGENCE AND ITS STRUCTURAL EFFECTS ON

FINANCE AND ACCOUNTING

Technology has populated the universe, not only the universe but the business arena. In this piece

we are not just talking about technology as an overarching tenet, but we are focusing on the

proliferating Artificial Intelligence [AI]. AI is a vast empiric technology pantium-powered notion

of advancement. In the higher dimension of automation, it is an architecture that is impending the

business and technical optics arena. The Finance and Accounting state of business is not spared

either as automation, actuarially and fundamentally, permeates the business transaction processing

systems. Finance and Accounting transaction processes are rooted in the architecture of accounting

science, business science and generic art of business. We focus and expound artificial intelligence

and its structural effect on finance and accounting.

AI is the highly charged automative population of algorithms in powering of business block

architectures, interconnecting the block architectures and effectually giving meaning to business

concepts in the risk universe. AI is highly charged business intelligent processes which enable the

routing of finance and accounting processes.

Finance and Accounting respectively have their own definitions in the risk universe. These two

refer to the portions of business management that deals with the strategic allocation of resources

through recording, processing and aluminated results in the universe of products or service

offering. Accounting, although it is postured as a separate tenet in the ambit of finance; although

interchangeably it is systematic recording of transactions using principally degenerate receiving

and giving principle-based motions. However, we note that in the new age or today’s age both
Finance and Accounting feature as huge professions for both the developing and developed world.

I stand to outline AI.

AI is powering economies through advanced algorithms and robotic engineering powered by co-

algorithms. What are co-algorithms? These are dual or binary written algorithms that nurture the

elucidative intelligence powered filtrated tenets that outline themselves in the business

environment which may be outlined in the PESTEL [political, economic, social, technology,

environmental, legal] dynamics.

AI has five categorizations phosphorous-perspired tenets. Before I elucidate the populative nature,

I draw your attention to the “phosphorous perspiration”. Phosphorous means that the degenerated

fundamental components give effect to the nature of the populative architecture. Phosphorous is

the atomic components of technology powered fundamentals. Today, many cluster AI in the tenet

of technology, rather in a narrowing methodology. What do we mean by this? We mean that

clustering AI under technology is limiting its populative architecture. As we will expound on the

five tenets of AI, we will also expound on its impact on Finance and Accounting. Its impact is seen

as Finance and Accounting is obviously resources bound.

1. Artificial Intelligence Languages [ALI]

AI is not just AI autonomously, but intelligence effective nature is espoused in the length and

component ridden algorithmic festered energy. What do we mean by this? We mean AI is rooted

in many programming languages powered by lengthy algorithms, sometimes shorter algorithms,

pantium powered. Some of the languages are A+++, Java or Python just to name a few. These

languages however work using pantium powered power. What do we mean by work? When we
say work we mean how do the languages functionary power transform into reading of threads of

algorithms? The generic pantium powering is rooted in metallic algorithm threads that receive

current energy flowing through the microchip installed in the devices. This is generic intelligence

power technology. Intelligence power technology operates through pantium chips. Finance and

Accounting that is espoused in both finance and accounting processes uses this analogy, rather

methodology of pantium powering of instructions stored through electromagnetic grafting of

language imprinted on the microchip. Finance and Accounting evolves due to AI as it promotes

intelligent recognition and intelligent treatment of transactions.

Finance and Accounting, however, does not operate on its own but it does operate due to nature of

source of transactions that are in financial nature and quantum based. The accounting processes

are definitely re-engineered because of digitally perspired transactions. Business leaders, Boards

and their committees stand to lose if ignorance takes over rendering current staff component null

and void.

The digitization of finance and accounting processes is the next age . It is not afar much but it is

closer but the road to the willed age of finance and glory hasn’t gone far much. Why is that so? It

is so because of lack of preparation and appreciation of the changing landscape. The generic

stumbling block is resistance to change. Generically humanity let alone business resists new

permeating structural changes. As we go further with AI we will expound more on the tenets of

AI impact.

2. AI Barriers

What are we talking about when we account for the inhibitors to AI proliferation? It is a state of

mind, a posture that grieves for accommodation on the business structural architectures. Barriers

are essentially stumbling blocks to the development. The impact of AI on Finance and Accounting
; I would say it is preposterously huge, big; it re-engineers process elements espoused in transaction

processing systems and those espoused in accounting processes emanating in reporting adages.

What do we mean by reporting adages? When we speak of reporting adages, we are referring to

cumulative account balances and classes of transactions as they perspire from previous accounting

regimes. What does it mean in the effectual tenet in Accounting? It basically means that the

treatment and disclosures will obviously change. If there is no change in treatment and disclosures

of account balances and classes of transactions this renders the whole investment in AI inefficient.

Since efficient frontiers in business are changing ; actuarial view of business risk scenarios will

expose or render current finance and accounting structures useless. Tested through stress

asymmetry of current finance and accounting models , it will be proven if the status quo will be

able to withstand pressures incoming from so stated AI driven classes of transactions and account

balances.

Barriers that are incoming include stagnant development of educative curriculums at institutions

of higher learning. These are not moving in tandem with the impending AI structures. Students are

being encouraged to complimentarily study and add-on qualifications or certifications. These also,

open a minute foundation that’s not a solution to the permeating experiential knowledge that AI

driven finance and accounting tenets bring.

For so stated danger is postured by the lack of will and resistance to change that attempts to label

or render AI as not necessary or not bringing much benefits. Skills needed to review and attest to

the veracity of accounting balances and classes of transactions also stand in the way.

AI is not technology. This statement may be disputed by those who are fighting every day to claim

astuteness in the realm of higher intelligence. What I mean is AI goes beyond technology, delving

deep into remote sensory aptitudes of algorithms advancing the technical capabilities of inhabitants
of the universe. Technology in fact, I would say it is a tenet of AI. Those elevated into higher

echelons of glory of enlightenment, stand before the blessing of visualizations of techno-powered

intelligence. I write this as a visionary of the new age where the current , “technological

environment” is regarded as advanced. It is not advanced yet, so long processes and activities of

the business arena have not developed to a level of intertwining and interweaving algorithms that

power transaction processing and transaction reporting at the top echelon of speed.

Volumes of transactions are being spewed across data centers located in various parts of the world

transaction processing centers. There are still barriers about threats of Cyber-attacks. Routing

rootkits are one of them where venerated bottlenecks wreak havoc. The age has to be propitiated

by life-giving platforms. That platform is AI which permeates aforesaid technology.

3. AI Compounding Effect

The AI Compounding effect. What is this compounding effect? This refers to the resulting

coordinating and conciliatory effect of pantium-powered algorithms in response to the business

challenges imposed by transitioning from old legacy finance and accounting to the new legacy

finance and accounting models. AI compounding effect is measured through algorithm complexity

integer deverberation of binary language penetration. What does it mean? It means AI

deverberates functionary extensive effect in any model. This is grafted through integer or numbery

complexity phasing in algorithms that increase the accuracy and precision of sequence of

intelligence powering in the activity. It is not an easy state of affairs for this transition to AI

powered accounting and finance model. Why is that so? It is so because the human factor is being

reduced to accommodate robotic function engineering in the new age of finance and accounting.

But why the resistance? The resistance comes from inability of economies to create opportunities
for the populace. Hence resources are squashed, scrounging at the door of Global entities firms

posturing the economics of opportunity costs.

AI compounding effect is a system, a universe wide pervasion, re-engineering bound financial

accounting and finance tenet. The compounding effect has five advantages and five disadvantages:

But we will focus on a few of them. The advantages and disadvantages are as follows:

Advantages

1. AI creates technical and technological economies of scale in the consumption of efficiency

frontiers emanating from large scale financial and accounting processes.

2. Technical accounting and finance is improved and at the same time it is degenerated into

indicators. What does it mean? Algorithms in AI are quite useful for generation of dashboards.

Within these dashboards’ reports are built.

3. The generation of Robotics in the new age of business. Revenue generation will become

quicker in transaction processing as a result of AI. Where revenue generation becomes quicker

it also brings integration capabilities. How does it do that? It is done through investment of

revenue in new frontiers of AI proliferating as a result of AI transformation.

4. AI is no mean feat but since it goes beyond technology, it creates a world of possibilities for

the generic business environment. The advantage is real time, quick product or service revenue

optimization. Massive product deployment through AI. Markets are quickly in proximity to

production or sales processes.

5. AI does not result in total elimination of manual labor or human factor intelligence. Its

advantages create a different type of employment and of course backed by education and

skilling capabilities.

Disadvantages

1. The level of investment at inception of AI in any industry may be quite high. In markets

that are quite mature over a period of time the cost of investment averages off due to

ploughing back development into new capabilities.

2. New skills are required as investment finances are channeled towards AI.

3. In markets where there isn’t enough education or reskilling, AI may alienate revenue

resulting in outdated finance and accounting processes that do not grow in tandem with

new AI capabilities.

4. Investment in AI may lead to resistance by supply chain contractors. How does it happen?

It happens through breaking down of automation between firms and supply chain

management contractors. Business may be alienated without concrete negotiation and

recovery plans.

5. AI may aid elimination of the human factor element in finance and accounting processes

which is crucial to the ‘nth’ level of review and control processes. In fact, even if purchases

are being powered by AI there is always a need for the human factor.
4. AI lineage of Asymmetrical components

AI has traceable ancestry legacy-built systems that it is following. What does it mean? It means

AI is not totally new, but it is following a pattern of glorious designs and creative innovation rooted

in the order of architectures impending the universe. This is because the legacy old intelligent

languages proffered a foundation hence that’s the reason for the architectures. As layers of

technological intelligence are built from one level to another , the interlinking and intertwining

formation forms the lineage we are talking about. This lineage is the overarching factor for the

proliferation of AI.

AI is built in layers. But its layers are not the same. There is an element of asymmetry. What does

this mean? It means its proportions or dimensions are not uniform. Why are the proportions not

uniform? They are not uniform because of the following:

4.1 It is built on phantom creation abilities. Electromagnetic powering of deverberation of energy

past microchip gives a photovoltaic ability of the chip to power thread unravelling of the utility

powered by AI;

4.2 Layers are asymmetrical because of different intelligent languages. The difference in

intelligence of algorithm languages gives impetus to the asymmetry;

4.3 Generic functional utilities appear the same, but they are not the same;

4.4 Generic interconnection of algorithms;

4.5 What does it mean for Finance and Accounting?

It means that the current finance and accounting models are not fit or do no proffer a platform for

impending AI. The principles of preparation of financial statements and related disclosures will

not change but they have to be powered by AI. To say the principles will not change does not mean

that the principles cannot be changed or innovated. This is because of resistance by current

business models or architectures to permeate realms of AI. Finance and Accounting are

institutionally stagnant. There has to be a paradigm shift in treatment, recognition and

measurement bases as well as disclosures in the financial records.

AI brings an inflow of a new era of accounting and financing models due to the velocity and

generation of transactions ultimately reaching another different dimension of generation of

transactions embodied in account balances and classes of transactions.

Be on the lookout for the next issue detailing how to measure efficiency frontiers during rollout of

AI in Finance and Accounting tenets.

Written by Thomas Mutsimba, now reincarnated as Enoch Ethanus, a Scribal

Glory of the Lord of Hosts. A prophet of Heaven’s Glory of Knowledge. ©