This chapter examines how artificial intelligence (AI) is affecting the accounting sector with a particular emphasis on Lebanon. It examines the significant shifts that brought about information and communications technology (ICT)-based technologies and automation, in addition to the historical changes in accounting. The combination of AI awareness and accounting automation has resulted in a significant revolution in the industry, which has boosted AI-powered accounting education. The chapter suggests ongoing AI advancements as well as proactive cooperation between accountants and accounting companies in order to increase the effectiveness and efficiency of accounting procedures. AI can cut expenses and free up accountants' time so they may focus on making decisions using analytics and data. However, the Middle Eastern accounting sector is confronted with a number of potential risks, such as the loss of jobs, the spread of artificial intelligence in the sector, the decline in human bias, the impact on accounting education, and the recurrence of past accounting mishaps.
Top1. Introduction
Over the years, there has been some significant advancement in the accounting sector. Double-entry accounting, for instance, has been around for around 500 years. But the information and communications technology (ICT) revolution of the twenty-first century has ushered in a new era of change that has fundamentally altered the way that many organizations run. Specifically, automation technologies are transforming accounting practices and increasing the bar for implementing innovative solutions.
These days, accounting automation covers the entire accounting lifecycle, not just financial management departments. By simplifying processes like data recording, modification, and evaluation, this all-inclusive approach reduces the need for manual data entry and bookkeeping (Chukwuani et al., 2020). The growth of robotic process automation (RPA), which automates manual, repetitive, and rule-based accounting tasks using software tools, provides more proof of this trend (Boulton, 2018).
Artificial intelligence is another revolutionary component that is transforming the accounting industry (AI). Because of its capabilities in machine learning, data mining, and semantic analysis, artificial intelligence (AI) has the potential to greatly increase the efficacy and accuracy of a number of accounting procedures, including financial reporting, fraud detection, and auditing. Businesses are starting to adopt AI and RPA technology even though it is still in its early phases, and their investments are paying off handsomely (Mohammad et al., 2020).
Artificial intelligence has an impact on practically every aspect of life, not only productivity. Accounting practices and processes are being radically changed by artificial intelligence, which is automating boring tasks and permeating daily life. The automation of accounting procedures has led to the abandonment of traditional accounting techniques (Al Hamad et al., 2022).
One of AI's primary advantages for the accounting sector is that it can speed up job processing times, freeing up accountants to focus on more crucial work. One technology development that increases efficiency is OCR software, which makes data collection procedures simpler (Lee &Tajudeen, 2020). AI additionally improves accounting data's correctness, insights, and dependability; yet, it also has disadvantages that call for the development of new talents, like job displacement and ethical conundrums (Askary et al., 2018; Chapple et al., 2020).
It's also critical to consider how AI might be used to effectively fight accounting fraud. AI offers a complete fraud protection solution with its powerful analytical powers and real-time monitoring tools. Machine learning algorithms, such those that analyze transaction data from the past to find trends that can point to fraudulent activity, enable early identification and intervention. Natural language processing algorithms can be used to search texts, such as emails and financial records, for clues about potential fraud or questionable communication patterns.AI-powered anomaly detection systems can also spot unusual financial transactions or behaviors that deviate from the norm, allowing for quicker investigations and a lower chance of fraud. Artificial intelligence and block chain technologies may also increase auditability and transparency while reducing fraud. By making full use of AI, accounting professionals can enhance their methods for spotting and preventing fraud, safeguarding financial integrity, and fostering professional trust.