As the world comes together to combat crises, it is only a matter of time before other innovations in technology emerge. For example, the adaptations required by the pandemic forced organizations to shift to a remote work culture. As a result, they realized that the advantages of home office can be relevant to the business, which has led to the trend towards a more structured implementation of remote work in 2021, with clear guidelines and strategies to increase productivity. The same happened with Artificial Intelligence.
In this context, having accurate, real-time data is more crucial than ever. Macro data analysis, for example, is already a global trend with strong internal potential that can be useful for any sector. In the Human Resources area, a People Analytics system will allow you to understand employee performance and which aspects influence their productivity and motivation. Additionally, it will provide powerful insights to empower teams with appropriate technology.
In times of crisis, leaders need to bring together people from different functional specialties to work towards a common goal of business continuity. Therefore, cross-functional work strategies play an essential role in brainstorming, generating ideas and presenting innovative business solutions. By forming cross-functional teams, employees gain new skills through sharing knowledge across functions, thereby increasing employee engagement, introducing new behaviors and creating team spirit in them.
Innovation was already taking many steps when the pandemic hit the market. This shift in thinking has accelerated from a sense of consideration to a more urgent and selective targeting. Many brands were forced to optimize their product portfolios and found that this reduction could help them reorganize. This ongoing shift toward selectivity has helped brands focus on what matters and make smarter bets on products where innovation can make a significant difference.
The pandemic has disrupted old ways, and there's no denying it has given businesses challenges that were previously difficult to manage. Facing these challenges required a change in policies and tools used to manage routines and professionals, but with innovation in digital infrastructure, they found themselves ready to conquer the post-pandemic world.
Acceleration of technologies on the market
Focusing more on Artificial Intelligence, its impact on society was already a recurring theme and with the COVID-19 pandemic the role of technology in the functioning of businesses became even more evident. In the study “Artificial Intelligence in the era of COVID-19: Optimizing the role of Artificial Intelligence in generating jobs and economic growth in Brazil”, commissioned by Microsoft from FrontierView, the impacts caused by the massive adoption of Artificial Intelligence in our country were raised .
According to the analysis, considering the level of intentionality of investments made in technology, Brazil can experience two distinct scenarios: the minimum and maximum benefit with full adoption of Artificial Intelligence. In the first scenario, the forecast says that the use of technology will add 1,8 percentage points to Brazilian GDP by 2030. In the second, additional growth could reach 4,2 percentage points, both suggesting that Brazil adopts all Intelligence functionalities Artificial resources available today until 2030. These numbers show that the greater the adoption, the greater the benefit that can be generated for the country. In other words, at a critical moment when the world was affected by the consequences of the COVID-19 pandemic, technology arrives as an ally to help Brazil in its economic recovery.
Accounting firms, which at the time were considering Artificial Intelligence as a test or internship, saw development accelerate as companies began creating products for specific service lines. Artificial Intelligence tools give accountants the freedom to focus their attention on the highest risks and transform the way they address them. Accountants have also started to use Artificial Intelligence to review risks in Due Diligence, for example.
Artificial Intelligence tools are used to identify problematic clauses and can even be deployed in the future to evaluate companies likely to fail, based on historical trends. For example, learning from failed companies' metrics around cash flow, profit margins, and risk exposure and applying them to similar-sized companies in a comparable industry or location.
Another area that has been ripe for development with AI tools is the area of risk identification and assessment. Artificial Intelligence for auditors helps to observe transactions and identify flaws with much more focus on the areas of greatest risk. AI tools are also becoming vital in rethinking risk assessment in a bid to eradicate money laundering and fraud.
In some organizations, finance functions fear the potential for excessive reliance on data. These can be real strengths of the profession, bringing realism to discussions and helping business functions create robust, informed and value-driven data approaches.
According to a study by FrontierView, two factors could motivate the adoption of Artificial Intelligence in Brazil. The first is related to e-commerce sales. According to the numbers, the sector doubled sales from April to August 2020, compared to the same period in 2019, showing a 105% annual increase.
Another aspect was the analysis of job creation, as the study predicts that the hours that Brazilians will work in 2030, based on pre-COVID-19 projections, will be automated in 46% of them. However, this impact does not necessarily mean a reduction in employment, as these hours can be used for strategic tasks and intellectual use. According to research figures, in the maximum benefit scenario, the demand for highly qualified professionals would increase significantly, going from 34% of total jobs to 54% by 2030.
It is important to highlight that, for Brazil to be prepared for these changes, investment in education is necessary, favoring the qualification and requalification of professionals for professions enabled by the adoption of technology.
Use of Artificial Intelligence in recent years
Artificial Intelligence, for example, while it has been incredibly useful in studying population density, demographics, and travel patterns to help researchers decide where to send supplies or how to mitigate an outbreak, innovations are focused on how to use technology to eliminate information incorrect. Social technology giants Facebook, Google and Twitter are working on use of technology to offer checks. The BlueDot Canadian developed an early warning system, which uses artificial intelligence, including natural language processing and machine learning, to track more than 100 infectious diseases, analyzing around 100.000 articles in 65 languages every day.
BioTech startups HealthTech have worked on developing easier, faster tests and effective masks to identify and prevent the spread of COVID-19. The growing possibilities of telemedicine, combined with robotics, have helped patients get the care they need without putting doctors at risk. In the US, a patient in Washington state was treated for coronavirus by a robot called vice, through which he communicates with his customer service team. In China, a robot called Little Peanut transported food to patients quarantined in a hotel.
Drones were used to deliver goods. The World Economic Forum published a blog post highlighting the contributions of drones in the fight against COVID-19. In China, the drone delivery company JD worked with government stakeholders to dramatically increase service areas and bring supplies to quarantined and isolated areas.
When SARS peaked in late 2002, it took scientists more than a year to sequence the virus's genome. This time, the COVID-19 genome was sequenced in less than a month after the first case was identified. Innovations in this area have helped provide information about how the virus is transmitted and how it evolves.
AI is already a reality in many companies
Artificial Intelligence is already a reality in many companies. With great prominence in recent years, it has positively impacted sectors such as IT, Marketing and Finance. It is believed that Artificial Intelligence has the potential to solve more complex problems, because it goes beyond simple mechanical automation. Artificial Intelligence involves cognitive processes and also allows tasks that involve reasoning and decision making. Behind these expectations, research sectors are created within organizations to develop applications using Artificial Intelligence.
Many entrepreneurs have already witnessed unprecedented gains in the use of AI-driven technologies and have started to include investments in the technology in their budgets, with the aim of integrating it into their operational routines to increase quality and agility. Artificial Intelligence can help, for example, to transform the time spent on operations into greater productivity and in a strategic way.
The optimization of operational activities is today one of the main gains from the application of AI in companies. In addition to increasing productivity, the application of Artificial Intelligence enables a better understanding of the business, allowing for various improvements in processes. This transformation also brings with it the fear of replacing employees with machines, but although many functions are going through similar processes, the majority tends to evolve, to eventually join Artificial Intelligence, bringing benefits, such as the cognitive processes already mentioned, which will help in decision-making. On the other hand, the IT professional has a strategic position in this process, as AI requires continuous learning and knowledge of the flow of information. Only in this way will the applications be inserted correctly into the business, allowing the results sought by the entrepreneur. In addition to implementation, it is also necessary to manage the impacts of changes resulting from the automation of tasks through Artificial Intelligence, as these changes will appear in the new workflow.
Whether through process optimization or new processes that challenge the traditional environment, it is a fact that most companies are changing something related to digital transformations. In this scenario, it is certain that the Artificial Intelligence sector will continue to evolve and more and more entrepreneurs will approach the complexities of the technology, implementing it in their business or expanding into new sectors. If you are a new entrepreneur, Artificial Intelligence is highly recommended and your business is a great scenario for the technology to develop alongside your company.
Artificial Intelligence in Accounting
It is believed that Artificial Intelligence is about to transform the accounting sector, as automation and big data already influence the way accountants serve clients. Until recently, accounting technology only made certain tasks easier, but did not challenge accounting professionals to rethink their business practices. And what does this impact of AI mean for accounting professionals? How can they prepare?
Expert advice suggests that the accounting sector stays informed about what's ahead in technology and specializes quickly, because entry-level positions tend to become more vulnerable than senior positions. In contrast, the better the technology, the greater the opportunities in demand for compliance and auditing, forensic accounting, and M&A accounting professionals.
Although routine tasks are the most threatened by innovations, information- and specialization-oriented tasks, such as decision making, will require more expertise from accounting professionals, who will also have more time for strategies, as they do not need to handle data and information. The same experts mentioned point to human experience as an important differentiator for accounting professionals. Many companies have unique needs that AI cannot meet, such as explaining complex tax forms.
Accounting professionals Today they have the power to define the future of their profession. The industry must develop the ability to adapt and evolve, as well as become proactive about future customer needs. The accounting as a profession you must innovate, providing consultancy and guidance to help clients with this preparation. Increasingly, automation and AI will take on new responsibility for routine cognitive tasks, but these technologies cannot yet replace human interaction. Accounting professionals must specialize to become strategists, helping to drive their client's business.
Accounting currently ranks among the most complex and challenging professional disciplines, and accountants are talented professionals who can adapt to the ever-changing landscape. By focusing their perceptions and knowledge on finding clients who need this demand, an accounting professional can secure their future and define the future of their profession.
With first-generation AI emerging in the market and increasingly robust automation tools, accounting professionals must be ready to take advantage of new opportunities presented by these technologies as they become available. It's time to prepare to find a niche and improve your interpersonal skills, learn more integrative, social and marketing skills to better interact with your customers.
Please contact TATICCA Allinial Global Brazil, which operates throughout Brazil and globally, with integrated audit services, accounting, taxes, corporate finance, technology, risk advisory, business consultancy and training. For more information, visit www.taticca.com.br or email taticca@taticca.com.br and find out more. Our company has professionals with extensive experience in the market and has certified methodologies for carrying out activities.