Artificial Intelligence

Artificial Intelligence is a technology that can endow a machine with human like ability to CAPTURE, APPLY, and EXPAND knowledge!

• Capture – Represent knowledge in a processible form
• Apply – Use knowledge to affect the real world
• Expand – Continually grow and improve knowledge (learning)

Generative AI: AI systems creating original content like images, text, music, or videos without human input using Deep Neural Networks. Large Language Models (LLM) are driving the current boom. And many more everyday…..While many technologies come “pre-trained”, there isn’t a brain in the box yet (but we are getting closer)!

How does generative AI work?

1. Data + Knowledge – 300 billion words and 570 gigabytes of text
2. Train – this can take months
3. Test – can also take months
4. Input and output with feedback – 1 Trillion parameters in model (parameters estimates properties in each nodes and the weights of each connections)
5. Capabilities (compose; code; summarize; instruct; write music; produce videos) – Capabilities keep growing through larger models and multimodal inputs

Examples of Capabilities: (Passed the tests)

• 90th% bar exam
• SAT 1380/1600
• Many AP tests 5/7
• Medical license exams

Emerging Technologies utilize a holistic approach that optimizes the integration of intelligent, robotic and autonomous systems towards five objectives:​

• Reveal Insights – Reveal deeper insights from datasets and real time interactions​
• Optimize Performance – Optimize the performance of people, systems, processes and machines​
• Harness Automation – Harness automation for competitive advantage across the enterprise​
• Enhance Experience – Design experiences with predictive, ambient and conversational attributes​
• Sustain Trust – Build systems that establish and maintain trust, and promote compliance

The arrival of artificial intelligence as a powerful tool in tax and other practice areas presents the accounting profession with a tremendous opportunity, but also a substantial challenge. AI is accelerating the already rapid pace of change that CPAs have been experiencing in recent years.

The opportunity is to reshape and deepen our relationship with clients by leveraging our expertise to become their indispensable business advisors who, with the assistance of AI, provide critical insights that drive their growth. The challenge is to quickly apply needed changes in training, technology, organizational structure, marketing and other areas – and perhaps just as importantly, reinvent our self-image – so we don’t find ourselves marginalized by disruptive innovation.

Artificial intelligence, which is the ability of a computer to perform tasks that normally require human intelligence, has a wide variety of applications across industries. In tax accounting it is making its mark by allowing computers to automate administrative tasks, such as sifting through reporting data, that typically take up much of an accountant’s time.

Applications in tax accounting will continue to evolve, but already AI is allowing accounting professionals to deliver more value to clients in several ways. We are better able to meet their expectations for a B-to-B customer experience that delivers popular aspects of the B-to-C experience, such as self-service in signing up for appointments and checking on the status of projects. It also provides the tools and frees up the time for advisors to deliver enhanced data-driven strategic insights into how a client’s business is operating and how to improve performance. For example, we might offer forecasts about the strength of the economy, what sectors are growing, and whether they should invest now in growing their business or hold off because the market is overheated.

This evolution in technology will also encourage tax experts to combine tech savviness with very human skills – the ones unreachable by machines – like best practices, experience, storytelling, effective communication and relationship-building.

As AI capabilities continue to advance, corporate management must determine the most critical business problems to address using this powerful technology. To facilitate this process, we have developed the Generative AI Assessment — an efficient tool designed to help your organization understand its strengths, weaknesses, and priorities for leveraging AI effectively. The assessment culminates in the creation of a Generative AI Roadmap, which outlines a cohesive set of actions aimed at quickly achieving a competitive edge while minimizing risk and costs.

The Generative AI Assessment provides the following:

There is much noise around ChatGPT and Generative AI. You can waste time and money with random siloed efforts across your organization that might not produce any value. Investing in a strategic approach that assesses your data readiness and results in a customized roadmap guiding your efforts will save you time and money and ensure you don’t fall behind your competition.

• What technology changes do you need to make?
• How about changes in your organization, for example enhanced training and development or a revamped approach to recruiting?
• How can you leverage AI to improve your customer experience?
• How will you define the new role of your accounting professionals if the blocking and tackling is increasingly handled by computers?
• How will you communicate these changes to your employees and clients?

If you are interested in more information, complete the form below to have an LBMC sales team member contact you.