Rise of the (Accounting) Machines? Blockchain and AI: The Changing Face of the Profession.

• Author: English, Damien B.M.
• Position: Accounting tech

the news is rife with versions of artificial intelligence (AI), new algorithms and constantly evolving technology claiming to change the face of how we conduct our day-to-day work. And accounting is no different. The idea of AI taking over certain roles in the accounting world is not a new one, and technologies like Blockchain are trying to reinvent practices that have been around for years. However, are they succeeding? And when is the right time to consider these technologies in your own firms?

Taking the Leap

Some firms have already started integrating Blockchain into the fold of their business.

Armanino LLP recently announced the launch of its Blockchain practice (armaninollp.com/services/blockchain/).

"Blockchain technology and crypto assets have the potential to become a high-impact innovation that brings value and security to businesses, and with a growing number of our clients currently in the space, it made sense to assemble a team well-versed in this new technology," says Andries Verschelden, partner at Armanino and Blockchain practice leader.

Ernst & Young LLP also recently announced the launch of the EY Crypto-Asset Accounting and Tax (CAAT) tool as part of its strategy to lead the industry with blockchain-related capabilities and services worldwide.

"EY professionals and clients alike are eager to leverage this technology," says Michael Meisler, partner and EY Global Blockchain Tax leader. "EY CAAT is the hallmark of our efforts in crypto-assets and Blockchain from a Tax perspective globally, and we will continue to work hard to make it the product of choice for EY clients."

These are bold steps forward in a brave new world, but as with any new technology, there are things to be wary of before jumping in.

"First and foremost, firms should avoid jumping on the Blockchain train right away until they understand what Blockchain is and how it is--or will be--used in accounting and finance roles," says Brad J. Monterio, managing director at Colcomgroup, Inc. "There's always a tendency when a shiny new technology toy comes onto the market that we all follow the 'me too" approach."

For example, after Blockchain popped up on Gartner's Hype Cycle, "it became a self-fulfilling prophecy that it was bound to be over-hyped. over-hype led to rash decisions and eagerness to join Blockchain consortia, implement Blockchain projects and more," Monterio says.

"Today I often hear about organizations getting burned from pouring resources into...