20 May Ethical Artificial Intelligence Rocks Business
Ethical Artificial Intelligence is here. And it’s here to help. In our previous Blog, we introduced Artificial Intelligence as a hot topic in business and industry. AI will certainly affect the accounting of every business. Thus we bring you Part II of our series of blogs on Artificial Intelligence.
Ethical Artificial Intelligence: “Hello, This is Duplex, Making an Appointment for…”
We introduced AI in that previous blog by quoting, Accounting Today, “When any technology graduates from sheer computing to understanding context (of a given business/profession, for example), it creates new possibilities.”
In Gavrilov’s opinion, Artificial Intelligence, like Duplex, has been making business life better just like the cloud made using software and storage better.
We’ve seen AI evolve since making a historic phone call without human interference, May 8, 2018, at Google I/O Developers Conference. Now, a year later, we know:
- Wow! AI can redefine the speed at which “business operations and accounting interact.” How is that for “continuous accounting?” The relationship between numbers and ethical business practice will have new meaning.
- Ethical artificial intelligence might become your business’s top watchdog. Its computations and results are so fast they can’t help but be transparent. Will this be good or bad for your business and community? Only you will know.
- Artificial Intelligence reduces or even eliminates the traditional lag time between actual business operations and accounting.
Therefore, With Ethical Artificial Intelligence, your accountant as well as you will have the accounting information of any business operation immediately available.
Robots Search Employers Using Robots to Catch Fraud in Expense Reports
At Gavrilov & Co Accounting and Tax Services, we have always leveraged technology to facilitate better service for our clients. And we have always sought practical uses for technological advances in accounting. With a little research, we found an excellent example of Ethical Artificial Intelligence on the job and in the accounting field.
Ethical Artificial Intelligence: Hunting Down Fraud
In our efforts to find an example that demonstrated the application of ethical Artificial Intelligence, we found an amazing story in the Insurance Journal online magazine.
An industrial equipment company who shall remain nameless put AI to work to discover fraud or misuse of company employee’s expense reports. But they were amazed at the extent of the crime the AI found.
The AI traced down “$12,000 worth of doggie day spa charges on an employee’s expense reports.”
Ethics with No Shades of Gray
In spite of inspection at various levels, the same employee with the doggie day spa extravagances was also “running a scheme to “sell more than $200,000 in company equipment on eBay.”
Stories like these are not uncommon. If you have a business of any size, you might need AI to check on the honesty of your employees and their business account.
- According to the Association of Certified Fraud Examiners, “only a fraction of expense reports are closely examined. Thus, it is no wonder that companies experience more than $7 billion in annual losses from fraud, according to the Association of Certified Fraud Examiners.”
- Now, humanity is putting ethical artificial intelligence to work to offset that truly deplorable statistic.
Ethical AI: The Robot Entities without Bodies
It’s common to think of an AI as a Robot. For example, Seri is an AI and a Robot, although “she” has no conventional robotic body. “She’s” a virtual entity.
Companies now have the option of using artificial “Robots.”
- And they are also capable of replacing the old company traditions. Some of these include random spot checks on company expense accounts.
- With ethical artificial Intelligence entities, companies are discovering fraud at least twice as often as human checkers.
- Therefore, they are seeing the expensive losses that are incurred. This has been verified by Andi McNeal, director of research for the Association of Certified Fraud Examiners.
Oversight Systems, maker of artificial intelligence program ferreted out the fraud in the story above. They were heroes to the industrial equipment company.
Meet the Oversight Robots
Terrence McCrossan is chief executive of Atlanta-based Oversight Systems. McCrossan stated, “It started out as a small infraction that led to an investigation that led to other things.” Oversight Systems audit about $2 trillion worth of employee spending each year. Additionally, they have put their AI systems to work for the “Department of Defense, McDonald’s and General Electric.”
More Accounting Challenges for Ethical Artificial Intelligence
As a result of new AI systems, we can surmise that the expense reporting worldwide will become a little cleaner and maybe a little meaner. However, it certainly will become more accurate as companies discover AI and its amazing ethical accounting.
- Now we get a complete overview of employee submissions.
- Not only can we monitor fraud, but we can also streamline reimbursement for employees who promptly file expenses.
“Soon, employees around the world will stop fussing with paper receipts and crying over hotel bills.” Thus, they will avoid also waiting weeks to get “reimbursed while their paperwork travels through the corporate labyrinth.”
By putting the work in robot hands, managers will not have to be police in the midst of the employee expense account procedures.
In the near future, AI will help even small companies. They will stop losing money to waste and fraud. The result: they will have ethical Artificial Intelligence to thank for it.
Algorithms to the Rescue: Artificial Intelligence on Parade
We can already see a parade of changes for some large companies due to AI. Corporate card charges automatically attach to electronic expense reports. This leads to seamless experiences for company representatives who stay at appropriately approved hotels.
One of SAP Concur’s newest offerings is a Concur Detect by AppZen. It is so smart and so ethical it can clear expense reports with no issues almost instantly. That’s good for the company at every level. They reimburse employee outlays within two days.
Humans Still Have Supremacy
In the AppZen, if a charge is questioned it goes to the human auditor, of course.
The scrupulous AI can find mistakes as well as fraud. For example, overly zealous employees might claim the same expense more than once, just to make sure they got the report done in the rush of daily business. Our AI will catch the mistake.
AppZen also finds many expenses that simply do not comply with company standards:
- strip clubs,
- in-room movies during business travel,
- Or charges for gifts at a hotel shop.
From the Sublime to the Ridiculous
Gavrilov & Co will make sure you do not pay the price if these expenses show up from your employees:
- Eyelash extensions,
- Lost Sunglasses,
- New shirts that were due to coffee spills…
Repeated bills, such as duplicated parking with identical receipts.
Fearing Not the Progress of Artificial Intelligence
So, in our previous blog and this one, we’ve cleared up a few mysteries surrounding AI. First, we simply had desktop software. Then came the cloud with cloud software. Then integrated multiple cloud software arrived. And finally, we have the arrival of the next big thing, ethical artificial intelligence.
From Evolution to Revolution for Your Business
Each digital, virtual step liberated your human accountant. Thus, they have become more advisory and strategic in helping you plan your business’s ongoing financial future and growth.
AI is the next step in leveraging technology to enhance your business. And, as Gavrilov & Co have always said, “We are here to help.”
Just awareness of the powerful ally you have in AI might be enough to prevent some problems in your business operations. (That’s one reason we have this blog and we provide awareness in articles like this one.)
As your business grows you can depend on Gavrilov & Co to help you know if a powerful, ethical AI system is right for you.
As Accounting Today has proclaimed, “Accountants will soon have the superpowers – to become AI-Accountants!”