Integrating
blockchain and artificial intelligence into the accounting curriculum
Learn how to introduce students to trending
technologies.
By Sean Stein Smith, CPA, CGMA, DBA
November 14, 2017
As digitization (數位化) and automation influence more business processes, the need increases to master emerging technologies. This will
be key to professional success
for accountants,
regardless of whether they work in public practice or private industry. Two of
these technologies—blockchain and
artificial intelligence (AI)—have the potential to reshape the accounting profession as we know it.
It is imperative
that faculty, students, and administrators understand the implications of these tools for the profession. Here's a brief overview of what exactly
these tools are, followed by suggestions on how accounting departments can
introduce them to faculty and students.
Blockchain
Blockchain is a technology that was created to facilitate transactions involving the cryptocurrency bitcoin. Structurally, blockchain
is a ledger of transactions recorded in a list of source records, called
blocks. Each party in a blockchain transaction is assigned a unique
identifier (識別符，標識符號) and is equipped with the technology
to encrypt and decrypt the information communicated via the transaction. The
transaction is then recorded in a block that can be viewed by all
computers connected to the blockchain. While the amounts of money changing hands are verifiable, the individual
parties are identified only by these identifiers,
adding a layer of security and privacy
to the transaction. Taking advantage of time-stamp (時間戳記) functionality, users are able to trust that records are accurate and identify whether
transactions are altered later. In addition, in a blockchain, any attempts to
alter blocks earlier in the chain would require all subsequent blocks be
updated, adding a level of protection
against fraud.
Blockchain-style technology involves much
more than bitcoin. Dozens of other cryptocurrencies operate on similar
technologies. And blockchain technology can verify transactions beyond transfer
of financial value--such as terms in a smart contract.
The business potential for the technology
is broad and deep. In the accounting profession, blockchain could have
interesting implications for auditors.
Due to blockchain technology's automated, real-time verification and enhanced
security, auditors might not have to spend nearly as much time on
verifications, confirmation, and analyses of specific accounts. Blockchain could make audits considerably faster and less
expensive to perform.
Artificial
intelligence
Organizations
of all types are using AI in new and exciting ways. Imagine being able to use a
vocally activated AI tool (think Alexa, Cortana, or Siri) to help you
research the applicable reporting codification
or tax code line item. The
integration of IBM Watson by KPMG for audit purposes demonstrates that this is
not a distant possibility--it is here! JPMorgan Chase was able to use AI to
reduce the time needed to review contracts from hundreds of thousands of
employee hours to mere minutes.
CPAs will soon be able to use AI for a variety of
applications and tools--everything from social media analytics to real-time
analysis of financial and operating performance and fraud
detection.
Because AI can perform many of the simpler, more routine tasks
that human accountants can, it has sparked fears that CPAs will lose their jobs
to software. A 2015 PwC study named accounting clerks and bookkeepers as the workers most at risk of elimination due to
technology. By performing rote
tasks, however, AI can also give CPAs the freedom to do more complex advisory work on
behalf of their clients.
How
to start integrating technological trends into accounting departments
As technology continues to advance, become more cost-efficient,
and proliferate throughout nearly every industry, accounting professionals will have to evolve to keep pace. Faculty can help by teaching
students how to use and
analyze the output of different technology tools. Here are some suggestions for introducing technology
topics into accounting programs:
Ask
for faculty volunteers. Have some faculty members act
as "early adopters" who can then share their knowledge and experience
with the rest of the department. Seek out faculty and instructors willing to experiment and up for the challenge of learning new technology
tools. Consider offering a course release or other incentive to help
address time constraints. Asking for volunteers demonstrates the organization's
intent toward
integrating these tools and allows the most interested individuals to step
forward.
Encourage
faculty education. When it comes to trending
topics such as AI and blockchain technology, the reality may be that all
parties involved (faculty, students, and administrators) need to obtain a
better understanding of how these tools function.
One
easy way for faculty to learn more about emerging topics
is through online courses from sites such as Khan Academy, Udemy, or Coursera.
The Big Four have also released resources
on blockchain (Deloitte, EY, KPMG) and AI (PwC).
Build
the fundamentals (建立基礎) first. Before practicing specific
technological tools, students need to understand the fundamental concepts that drive the technology. Faculty can discuss
topics like blockchain and AI, their implications
for the profession, and potential for future growth in existing accounting
courses. Including relevant market examples,
which are numerous in mainstream media, will help emphasize the critical nature
of these tools to students.
Upper-level undergraduate or graduate
courses can build on this knowledge by including specific tools, applications,
and case studies focusing on using these different tools. In either
case, educating students at the undergraduate level, and reinforcing this
introduction with specific applications
will prepare students for the emerging field of data science.
Assign
research projects on
emerging technologies. Having students research and
analyze AI and blockchain is a great way to familiarize them with the
technologies. I have found the following approach
to be most effective.
First, introduce the topic itself by using
resources such as articles, open source videos, or some of the online courses
mentioned above. Make sure that students are actually becoming aware of these technologies and their implications. Second, reinforce students' knowledge
by including a few open-ended questions on exams or by having students write a
research paper. Third--and perhaps most important--is to discuss these topics
and trends at every applicable moment. As educators, we have collective
responsibility to make sure that students and graduates are prepared for the
workplace of today and tomorrow.
Group
projects are a must. As technology automates some lower-level accounting roles, cultivating both higher-level analytic abilities
and people skills is a
must for accounting students. Group
projects, in particular, represent both a reality of the current workplace and a set of skills that accounting professionals will need to excel moving
forward. Although some students find group projects a bit cumbersome, the reality is that virtually every job
in accounting and finance
requires working with other professionals與他人合作.
Blockchain and AI are not trends that will go away any time soon,
and they are having tremendous influence
on the accounting and finance profession. Getting the ball rolling, and beginning the
process of integrating these tools into the classroom, is something that
departments can, and should, start today.
