CHAPTER 1

Nature and Background of the Study

Huge number of accountants are part of various

government and non-government bodies, wherein they encourage

ethical practices while doing the function of accounting. In

this generation, accounting plays an essential role in a

business. It is called as one of the “lifeblood” of a

business for one of the job of accountants is to provide a

financial advice to clients that range from multinational

organizations and governmental bodies to small independent

businesses and individuals.

The standard role of accounting is to maintain

financial information in an organized manner. It includes

preparing financial statements where accountants will

collect the financial data of a business and move on to

segregation, analysis and compilation of the same in an

organized manner. Accountants must have the knowledge of

1
what information is to be stored in what file. Tax planning

is also one of the traditional accounting duties and it is

recognized as one of the most important duties of an

accountant. An accountant must have absolute knowledge of

the tax structure, tax laws and gives advice at the same

time. For instance, one professional Accountant, can advise

about savings where owners can earn as well as tax returns

they are entitled for. They are also preparing the

information to sort out taxation formalities before the end

of the financial year. Through cost and management

accounting, accountants can also help a business to minimize

or lessen costs also known as cost saving. It is the

assessment of the cost of production at each and every step

of the production process and the information is used at the

managerial level to determine where cost can be cut. Last

traditional accounting duty is auditing. It helps a business

in sorting out any irregularity that may take place.

Accountants also analyze the information and

participating in making the decision process. They have

become an important asset of the business. The modern-day

Accountants are equipped with knowledge and expertise to

handle a wide number of roles or duties prior to accounting.

2
 As years goes by, modernization has been inextricably

linked with human lives. Everything is associated with

technology, resulting to some changes and easiness in

people's work. Modernization is continuous and open-ended

process prompt to new discoveries of technology and

inventions. Automation is the adaption of machines to do the

task of human being, or increasingly, to task what human

cannot and can do. The term mechanization is sometimes used

to refer for replacement of workers labor by machines.

Automation generally indicates integration of machines into

a self-governing system. Automation has revolutionized in

some areas that has been mentioned, there is marginally

aspects of today's life that was not affected by it. The

term automation was invented in the Automobalized industry

about 1946 to define the highly use of automatic devices and

technology in mechanization. It was invented to lessen and

to fasten the human labor. The word is used extensively in a

manufacturing context, but also applied outside

manufacturing in connection with other variety of system

which are mechanical, electrical, or computerized action for

human intelligence and sacrifice.

Generally, an automation can be called as technology

concerned with performing an automatic programmed and

3
commands that is resulting in automatic feedback. The result

of automation is being able to operate something without the

intervention of humans. Its function is to surpass the

abilities of human beings in the same activities.

Artificial Intelligence is defined as the "Sub-field

of Computer Science concerned with the Concept and Methods

of Symbolic Interference by Computer". Artificial

Intelligence is still in a small progression from the day it

was coined. A.I optimism was at its best that humanity is

being underestimated. Even though the process is slow, they

still have one advantage over computers, they can filter out

irrelevance.

One of the most striking advantages of Automation and

AI to humans is it increases the production capacity as

machines can be used on work interminable. Those machines

can typically run faster and produce more accurately made

products with fewer errors. Despite the claims of high

quality of good workmanship by humans, it typically does the

manufacturing process with less variability than human,

resulting in great control and consistency.

In spite of the advantages, Automation and AI has

also disadvantages. One of the disadvantages is the high

4
amount of money that companies and banks required to invest

the automated machines and maintenance that requires huge

amount of money. Most of the machines were made for the

benefit of all mankind and as an outcome, people chose to

rely on them. Automation and AI increases in unemployment by

increasing the amount of automation, there are less

employees required causing high unemployment rates. Machines

can also easily lead to destruction, if they fall into the

wrong hands.

This chapter aims to recognize automation and (AI)

Artificial Intelligence in traditional accounting duties

over the past years. It specifically looks at the effects of

automation and Artificial Intelligence (AI) in traditional

accounting duties.

Statement of the Problem

This study aims to determine the effects of Automation

and Artificial Intelligence Taking Over Traditional

Accounting Duties. Specifically, it attempted to answer the

following questions:

1. What are the factors that affect Accountants in

using automation and AI taking over traditional

Accounting Duties?
5
 2. What are the advantages and disadvantages of

using automation and AI in Accountants?

3. What are the problems commonly encountered in

using automation and AI?

Hypotheses

Based on the proceeding research questions

identified, the researchers formulated the following null

hypothesis:

1. There are no factors of automation and Artificial

Intelligence (AI) that affects traditional

accounting duties.

2. There are no major differences present between

using and not using automation and Artificial

Intelligence (AI) in traditional accounting duties.

3. There are no problems commonly encountered in

using automation and Artificial Intelligence (AI).

Conceptual Framework

6
 The focus of this study was undertaken by the

following conceptual framework shown in Figure 1 which has

three process: the input, process and output.

The first box pertains to the input of the research

study refers to the perception of accountants about

automation and artificial intelligence which represent the

population.

The second box pertains to the process of the

research study. This pertains to the questionnaire that will

be answered by the respondents.

The third box pertains to the output of the research

study. This refers to the effects of automation and ai

taking over traditional accounting duties.

INPUT PROCESS OUTPUT

The Effects of
Automation and
Perception of Questionnaire Artificial
accountants Intelligence (AI)
about Automation taking over
and AI Traditional
Accounting Duties

7
Figure 1 The Conceptual Framework on The Effect of
Automation and Artificial Intelligence (AI) taking over
Traditional Accounting Duties.

Significance of the Study

The findings of the study are anticipated to make

benefaction to the following:

Organization. It is useful for the organization to

ameliorate the teamwork of human labor and technology

equitably.

Certified Public Accountants. It will be advantageous

too for the accountants in the view of the fact that their

duties are being overhaul by the technology.

For the future researchers. This will be beneficial

reference for the researchers who will make related study

incisively in the field of accountancy.

This will also be helpful to every organization

today, in the next generation and to the economy as

accountants are auxiliary of the government in terms of

economic development.

Scope and Limitations of the Study

8
 This study is primarily focused on the effects of

automation and artificial intelligence to traditional

accounting duties. The study was conducted in the academic

year 2019 up to 2021. The data collection was conducted

through the accountants within Batangas and NCR who will

represent the population. This study will not cover problems

other than the effects of automation and artificial

intelligence. The study was done through questionnaire

answered by the subjects. By this, the researchers were able

to know the effects of automation and artificial

intelligence to traditional accounting duties.

Definition of Key Terms

For purpose of better clarification, important terms

used in the study are hereby defined:

Accountant. An accountant is a professional who

performs accounting functions such as audits or financial

statement analysis. This is also known as account analysis.

Accountants can either be employed with an accounting firm

or a large company with an internal accounting department,

or they can set up an individual practice (Investopedia,

9
2020). In the study, they are the respondents who represent

the population.

Accounting. A systematic development and analysis of

information about the economic affairs of an organization

(Britannica,2020). In the study, it is conceptually defined

as duties of accountant.

Artificial Intelligence. The ability of a digital

computer or computer-controlled robot to perform tasks

commonly associated with intelligent beings

(Britannica,2020). In the study, it is conceptually defined

as substitute to human intelligent skills.

Automation. The application of machines to tasks once

performed by human beings or, increasingly, to tasks that

would otherwise be impossible (Britannica, 2020). In the

study, it is conceptually defined as alternative to human

being in doing some task.

Traditional Accounting Duties. Examination of the

records and reports of an enterprise by specialists other

than those responsible for their preparation or auditing

(Britannica,2020). In the study, it is conceptually defined

as duties of accountants where being taken over by

automation and artificial intelligence.

10
 CHAPTER 2

Review of Related Literature

This chapter presents the related literature and

studies which were reviewed and helped the researchers to

fully understand the topic being investigated.

11
Related Literature

An article of Ben Vermeulen, Jan Kesselhut, Andreas

Pyka and Pier Paolo Saviotti (2018) entitled “The Impact of

Automation on Employment: Just the Usual Structure Change?”

stated that many new products, services, occupations, and

sectors related to technologies such as robots and AI have

yet to emerge, which is likely to cause an underestimation

of future employment. After all, the BLS Occupational

Outlook uses the job counts, wage estimates, etc. in the

Standard Employment Matrix for its projections. However, the

occupational classification system therein is only extended

ex post and thus omits counting jobs in emerging occupations

not contained in the SOC yet. They resorted to using the

Atlas database for illustrations of (types of) emerging

occupations. Similarly, both the NAICS and the BLS’ own

sector plan as well as the input–output matrix used in the

estimation of demand for particular occupations are extended

conservatively. The BLS currently does not provide

projections on the labor demand, wages, etc. in emerging

sectors, nor computes the consequences of/for these new

sectors through input–output analysis. Consequently, the

actual demand for labor and wages may well be higher.

12
 Since AI can perform what human labor can do, there

is a probably that there will be an underestimation of

future employment. This is how, Automation and artificial

intelligence affect the accounting profession.

An article of Jiaxin Luo, Qingjun Meng and Yan Cai

(2018) entitled “Analysis of the Impact of Artificial

Intelligence Application on the Development of Accounting

Industry” asserted that one of the important representatives

of the new round of scientific and technological revolution,

artificial intelligence is moving from technology research

and development to industrial application, and has become a

new driving force for global economic development. The

accounting industry should also strengthen the main position

of artificial intelligence application in the process of

reform and innovation. Undoubtedly, intelligent finance and

accounting is the future development trend. In the process

of promoting the application of artificial intelligence in

the accounting field, it is necessary for the country,

enterprises, universities, individuals and other parties to

work together, and how to effectively solve the problems

arising in the process of application will be the key.

13
 The said research has bearing to the present study

since artificial intelligence was used in different

industry. Application of AI in accounting industry can

effectively solve the complications and innovates their

working manners. Moreover, it supports the idea and the

tendency of AI taking over the traditional accounting

duties.

An article of Raja Parasuraman (2010) entitled

“Designing Automation for Human Use: Empirical Studies and

Quantitative Models” stated that an emerging knowledge base

of human performance research can provide guidelines for

designing automation that can be used effectively by human

operators of complex systems. A model for types and levels

of automation that provides a framework and an objective

basis for making such choices is described. Four human

performance areas are considered—mental workload, situation

awareness, complacency and skill degradation. Evaluative

criteria include such factors as automation reliability, the

risks of decision/action consequences and the ease of

systems integration.

As modernization transforms work from traditional to

secular, accounting duties are likely to be affected. The

14
article of Raja Parasuraman shows automation for human use

and it is related to the present study for automation is one

of the variables to be believe that overtaking traditional

accounting duties.

Related Study

A study of Paul Brown, Tuan Ly, Hannah Pham, and

Prabhu Sivabalan (2020) entitled “Automation and management

control in dynamic environments: Managing organizational

flexibility and energy efficiency in service sectors” as

automation has been conceptually explained in management

accounting research as an antecedent to control problem

avoidance. Subsequently, they examine how automation and its

related management control are designed and used in a

dynamic service-based organization, where goal attainment

and the energy efficiency of its buildings are critical. In

doing so, they explain how automation-related

standardization is adjusted by enabling control attributes

(repair, flexibility, internal transparency) to advance user

flexibility. The findings offer greater understanding of how

automation and management control systems are designed and

15
used to enhance organizations' energy efficiency in dynamic

service-based environments.

This article is related to the present study since it

is stated that Automation minimizes the loses in energy

efficiency when less optimal repair control behavior

manifests. It also enables control to advance user

flexibility.

A study of Edward Felten, Manav Raj and Robert

Seamans (2019) entitled “The Occupational Impact of

Artificial Intelligence: Labor, Skills, and Polarization”

investigate the link between AI and labor by creating a new

measure that they call the AI Occupational Impact (AIOI).

The results provide broad evidence that AI may complement

rather than substitute for human labor, at least in the

short run. Future work can continue to investigate how the

impact of AI manifests across occupations, geographies, and

backgrounds. These findings suggest that access to

complementary skills and technologies may play an important

role in determining the impact of AI, and that AI has the

potential to exacerbate labor market polarization.

The article emphasized that AI has the capability to

exacerbate the polarity of labor market. Inclined to the

16
present study, AI is not appropriate to apply in accounting

duties since it can ruin the labor market. In addition, the

afore mentioned is unsuccessful to substitute for human

labor.

A study of Maija Keskinen and Rudo Cathrine Tarwereyi

(2019) entitled “Automation and the transformation of the

audit process: A qualitative research on the impact of

automation on the audit process” said that automation

already has an impact on the audit industry. In relation to

audit judgement and professional skepticism, the results

suggest that AI will not be able to replace human inputs in

these aspects for a very long time. The result seems

plausible considering the fact that existing technology is

not advanced enough to teach machines to make appropriate

judgement or to be skeptical, but perhaps in distant future

that could become possible. Keeping up with technological

development can be seen as a good thing since auditing as a

field has been generally seen as lagging behind

technological development due to its standard driven nature

and the complexity of an audit process. However, technology

is still not advanced enough to make proper use of

continuous auditing.

17
 The mentioned above study, stated that the idea of

applying advanced technology such as AI will not be able to

replace human knowledge in performing accountants’ duties.

Also, it will be difficult for the traditional accountants

to change their routine of undertaking their job. It is

related to the study because it showed results that may

contradict or verify the outcome.

A study of Eleonora Stancheva-Todorova (2018)

entitled “How Artificial Intelligence is Challenging

Accounting Profession” stated that the “artificial vs. human

intelligence” dilemma widely debated among academics and

practitioners, encompasses many controversial issues related

to the future prospects of some occupations, the required

new skill set and competences, the way humans and machines

could work efficiently and effectively together. There is a

lot of work ahead to review the accounting curricula and

prepare graduates for successful career. Accounting

researchers are also challenged by the AI issues in the

accounting realm as they must collaborate with AI

specialists and to bridge the existing gap between the

accounting domain and AI domain. More complex AI

applications can be developed to solve some accounting

problems more fully.

18
 The present study is related in this article since it

shows that Artificial Intelligence has a big impact to the

role of accountants. It can alter their perspective and

develop the required skills and competences corresponding to

the technology and their intensify business applications.

A study of Jiaxin Luo, Qingjun Meng and Yan Cai (2018)

entitled “Analysis of the Impact of Artificial Intelligence

Application on the Development of Accounting Industry”

stated as one of the important representatives of the new

round of scientific and technological revolution, artificial

intelligence is moving from technology research and

development to industrial application, and has become a new

driving force for global economic development. The

accounting industry should also strengthen the main position

of artificial intelligence application in the process of

reform and innovation. It is necessary for the country,

enterprises, universities, individuals and other parties to

work together, and how to effectively solve the problems

arising in the process of application will be the key.

This study determined the advantage and disadvantage

of Artificial Intelligence in the field of accounting

19
industry. It confers about the economic development through

AI in many aspects. It is alined in our study on how AI

affects an organization and its environment.

A study of Cheyenne Whitman and Matthew Sobczak (2018)

entitled “AI: Overrated or the Future of Accounting” provide

evidence from accounting professionals in various industries

to analyze perspectives on the future of artificial

intelligence (AI) and its impact on the accounting

profession. The results found that participants who

perceived AI as easy to use or capable of enhancing job

performance, expressed more positive responses relating to

the acceptance of AI. Another factor relating to the

adoption of AI technology pertains to the belief that

company culture will not change, however, many participants

believe that the responsibility of professionals will

change. Finally, participants who believed they had the

resources and the skills necessary to use AI also believed

it would increase auditor responsibility.

This study ascertains the impact of Artificial

intelligence in accounting profession. The study asserted

that AI is capable in enhancing job performance as well as

20
in our research study, the researchers aim is to have

knowledge about the effect of AI in the field of accounting.

A study of Celia Cristina da Silva Vicente, Maria

Joao Machado and Raul Laureano (2016) entitled “Innovation

in Accounting Tasks: Empirical Study in Two Professional

Groups” conclude that business reporting was the task

category to which was attached the greater importance level,

followed by the cost analysis category. The results suggest

that the professionals give more importance to the

traditional tasks, linked with the concept of an accountant

oriented to the monetary aspects, instead of to the more

innovative tasks, which is not in line with the needs of the

organizations.

The article stated the importance level of accounting

tasks specifically the traditional tasks and more innovative

tasks. It is relevant to the present study for it discuss

and manifest the traditional accounting duties which will

help in the making of the research study.

21
 CHAPTER 3

Methodology

This chapter includes the research methodology of the

dissertation. In more details, the researchers explain the

method used in undertaking the research including structure

of the research, subjects of the study, research instrument,

construction of questions, validation of questions, and

administration of questions. Finally, this chapter provides

information about the instrument used in gathering data and

mode of data analysis.

The main purpose of the study is to determine the

effects of automation and artificial intelligence (AI)

taking over traditional accounting duties.

Research Design

22
 To obtain the purpose of the study, descriptive

method of research was used administering the questionnaire

through online.

The research design used in the study was descriptive

design. Wherein, the researcher does not control or

manipulate any of the variables, but only observes and

measures them. It aims to accurately and systematically

describe a population, situation or phenomenon (Shona

McCombes, 2019).

Descriptive method of research was chosen in the

study since it is an activity involving collection of data

which is most appropriate design that the researchers need

to scrutinize the study. This method was chosen to determine

the factors affecting Accountants, advantages and

disadvantages, and problems commonly encountered in using

automation and artificial intelligence.

Subjects of the Study

The subjects were taken from different companies in

Batangas and NCR. Using availability sampling technique, a

total of 20 interview requests were sent and 10 out of 20

23
Certified Public Accountants accepted the interview request.

As accountants, they are the ones encountering the effects

of automation and Artificial intelligence to traditional

accounting duties.

Research Instrument

The instrument that the researchers used in order to

collect the data and information to determine the effects of

automation and artificial intelligence taking over

traditional accounting duties is questionnaire.

Questionnaire is mainly used for Internet-mediated

research where the compilation is done through the Internet

for the purpose of examining them to provide new evidence

relating the research study. The researchers used English

language for the questions. The researchers prepared 3 sets

of questions that was based from the statement of the

problem.

Construction of Questionnaire

The questions are based on the statement of the

problem of the study. Part I consisted of questions about

24
the factors that affect accountants in using automation and

AI over traditional accounting duties, part II focused on

the advantages and disadvantages of using automation and AI

and part III where the researchers asked about the problems

commonly encountered in using automation and AI.

The researchers are ought to answer the questions in

honest way. This would allow the researchers to gather

knowledge that will give an understanding and deep

reflection of the data.

Validation of Questionnaire

In the validation process of this study, copies of

questionnaire were given to the research adviser for

correction. The recommendation and opinion given by the

adviser go through consideration for the final correction of

the interview questions.

Administration of Questionnaire

After the validation of interview questions, the

letter of request was noted by the thesis adviser. With the

request of granted, the questionnaires were given to the

selected accountants through online. The questionnaires were

25
answered through internet-mediated research where the study

is explained before the respondents could answer.

Scoring of Questionnaire

In order to measure the responses on the

questionnaire, the researchers use Likert scale to determine

which have the lowest and highest response. Descriptive

equivalents or verbal description will be interpreted to the

results. The scale continuum will use the following:

 From 1 – 1.80 represents Strongly Disagree (SD)

 From 1. 81 – 2.60 represents Disagree (D)

 From 2.61 – 3.40 represents Moderately Agree (MA)

 From 3.41 – 4.20 represent Agree (A)

 From 4.21 – 5 represents Strongly Agree (SA)

Data Gathering Procedure

The researchers had apportioned vital determination,

affiliation, time and effort in elaborating their questions

to serve the premeditated respondents. The questionnaire was

effectuated utilizing competent questions modified from

affiliated research and individual questions created by the

26
researchers. The questionnaire was to identify how

automation and Artificial Intelligence (AI) affects and

influence the traditional accounting duties. The data

gathered from this technique has been studied and

scrutinized through statistical treatment.

Statistical Treatment

In attempt of understanding the effects of

automation and artificial intelligence taking over

traditional accounting duties, the researchers use

statistical treatment in order to make use of the data

gathered. The statistical procedure to be used in the study

is by getting the weighted average which is multiplying the

number of responses by the given weight and dividing the

result by the number of respondents where Σfx stands for

summation of weighted frequencies and n stands for total

number of respondents.

Σfx
WM=
n

27
 CHAPTER 4

Results and Discussion

This chapter aims to bring in the presentation of the

findings and analysis derived from the online questionnaire.

The responses gathered from the online questionnaire have

been analysed. The findings were discussed in the light of

previous research findings, and available literature, where

applicable, in order to identify similarities and

differences between this study and previous studies and

literature. This chapter solely focuses on presenting the

gathered data in a meaningful way to facilitate the

discussion.

1. The factors that affect Accountants in using automation

and AI taking over traditional accounting duties

Table 1. Factors that Affect Accountants in Using

Automation and AI Taking Over Traditional Accounting

Duties

ITEM MEAN SCORE INTERPRETATION

Online invoices 4 A
Data entry 4 A
Regulatory compliance 3.6 A
Data interpretation 3.5 A

28
Margins of error 3.9 A
Amount of data gathered 4 A
Processing of documents 3.8 A
Monitoring of internal 3.6 A
controls and systems
Internet financial 3.5 A
reporting
Limitation faced in the 3.6 A
previous decades

The table above shows the factors that affect

accountants in using AI over traditional accounting duties.

The table consists of 10 rows and 3 columns. The first row

is the table heading, while the remaining are the items and

its results, while the composite mean and its verbal

representation are the last row. The first column is about

the possible factors that may affect traditional accounting

duties. The second column is the weighted mean of each

statement and lastly, the third column shows the verbal

interpretation of the results.

The first item got the mean score of 4 which was

verbally interpreted as agree. This means that the

respondents agreed that online invoices would be affected

once AI took over the traditional accounting duties.

Compared to traditional bookkeeping methods, AI-enabled

invoicing is being used at the present time.

29
 The second item got the mean score of 4 which was

verbally interpreted as agree. This indicates that the

respondents agreed that once the traditional accounting

duties are taken over by AI, data entry would be impacted.

The third item got the mean score of 3.6 which was

verbally interpreted as agree. This illustrates that the

respondents agreed that regulatory compliance would be

affected once the traditional accounting duties were taken

over by AI.

The fourth item got the mean score of 3.5 which was

verbally interpreted as agree. This means that the

respondents agreed that data interpretation would be

affected once AI took over the traditional accounting duties

as AI offers a means to accurately interpret external data,

learn from those data, and exhibit versatile adaptation.

The fifth item got the mean score of 3.9 which was

verbally interpreted as agree. This indicates that the

respondents agreed that once the traditional accounting

duties are taken over by AI, margins of error would be

impacted.

The sixth item got the mean score of 4 which was

verbally interpreted as agree. This illustrates that the

30
respondents agreed that amount data gathered would be

affected once the traditional accounting duties were taken

over by AI.

The seventh item got the mean score of 3.8 which was

verbally interpreted as agree. This shows that the

respondents agreed that once AI took over the traditional

accounting roles, processing of documents would be affected.

The eighth item got the weighted mean of 3.6 which

was verbally interpreted as agree. This implies that the

respondents agreed that the monitoring of internal controls

and systems would be affected once AI took over the

traditional accounting jobs. AI innovatively works with the

internal controls and systems to help accountants to

generate high-quality accounting information by reducing

data risk.

The ninth item got the mean score of 3.5 which was

verbally interpreted as agree. The result indicates that the

respondents agreed that internet financial reporting would

be affected once the traditional accounting duties were

taken over by AI.

The tenth item got the mean score of 3.6 which was

verbally interpreted as agree. This means that the

31
respondents agreed that once AI took over the traditional

accounting roles, limitation faced in the previous decades

would be affected.

To sum it all up, all the factors shown in the table

above are the factors affecting the accountants in using AI

taking over traditional accounting duties.

The aforementioned was supported by the study of

Eleonora Stancheva-Todorova (2018) who conducted a research

about "How Artificial Intelligence is Challenging Accounting

Profession". It emphasizes that the role of accountants is

greatly influenced by Artificial Intelligence. It can alter

their perspective and develop the required skills and

competences corresponding to the technology and their

intensify business applications.

An article from Jiaxin Luo, Qingjun Meng and Yan Cai

(2018) concluded that the accounting industry should also

strengthen the main position of artificial intelligence

application in the process of reform and innovation. The

said research has bearing to the present study as it

supports the idea and tendency of AI to take over

traditional accounting duties.

32
 A study of Cheyenne Whitman and Matthew Sobczak

(2018) entitled “AI: Overrated or the Future of Accounting”

supports the results by providing evidence from accounting

professionals in various industries to analyze perspectives

on the future of artificial intelligence (AI) and its impact

on the accounting profession. The results found that

participants who perceived AI as easy to use or capable of

enhancing job performance, expressed more positive responses

relating to the acceptance of AI. Another factor relating to

the adoption of AI technology pertains to the belief that

company culture will not change, however, many participants

believe that the responsibility of professionals will

change.

A study of Celia Cristina da Silva Vicente, Maria

Joao Machado and Raul Laureano (2016) entitled “Innovation

in Accounting Tasks: Empirical Study in Two Professional

Groups” conclude that business reporting was the task

category to which was attached the greater importance level,

followed by the cost analysis category. It supports the

results for it discuss and manifest the traditional

accounting duties such as internet financial reporting as

33
being one of the factor being affected by automation and AI

which are the product of innovation.

An article of Raja Parasuraman (2010) entitled

“Designing Automation for Human Use: Empirical Studies and

Quantitative Models” stated that an emerging knowledge base

of human performance research can provide guidelines for

designing automation that can be used effectively by human

operators of complex systems. A model for types and levels

of automation that provides a framework and an objective

basis for making such choices is described. Four human

performance areas are considered—mental workload, situation

awareness, complacency and skill degradation. Secondary

evaluative criteria include such factors as automation

reliability, the risks of decision/action consequences and

the ease of systems integration. As modernization transforms

work from traditional to secular, accounting duties are

likely to be affected. The article of Raja Parasuraman

supports the results as it shows automation affects human

performance areas generally workload, situation awareness,

complacency and skill degradation that are also the factors

that affect accountants.

34
 2. The advantages and disadvantages of using automation

and AI in Accountants

2.1 The advantages of using automation and AI in

Accountants

Table 2.1. The Advantages of Using Automation and AI in

Accountants

ITEM MEAN SCORE INTERPRETATION

Having new and improved 4.3 SA
interfaces
Relieves information 3.7 A
overload
Minimize errors 3.7 A
Can perform complex task 3.8 A
Increase productivity and 3.8 A
efficiency of output
Extend probability of 3.6 A
success
Prevent fraud 2.7 MA
Reduces human error 3.6 A
Saves time 4.2 A
Better communication 3.2 MA

Table 2.1 illustrates the results regarding the

advantages of using automation and Artificial Intelligence

(AI) in accountants. The table is composed of 11 rows and 3

columns.

35
 The first row is the heading of the table and rest

are the items and its result. The first column is the items

about the advantage of automation and Artificial

Intelligence (AI) taking over traditional accounting duties.

The second column is the weighted mean of each item and

lastly, the third column shows the verbal interpretation of

the results.

Item no. 1 has a weighted mean of 4.3 which was

verbally interpreted as strongly agree. This means that the

respondents strongly agreed that Automation and AI is having

new and improved interfaces that gives clearer provision of

information.

The item no. 2 has a weighted mean of 3.7 which was

verbally interpreted as agree. This means that the

respondents agreed that Automation and AI relieves

information overload that controls the contents that the

consumer consumes.

Table 2.1 illustrated that item no. 3 has a weighted

mean of 3.7 which was verbally interpreted as agree. This

means that the respondents agreed that Automation and AI can

minimize errors that is created to the software.

36
 Table 2.1 emphasized that item no. 4 has a weighted

mean of 3.8 which was verbally interpreted as agree. This

means that the respondents agreed that Automation and AI can

perform complex task that is commonly associated by the

intelligent system.

Item no. 5 has a weighted mean of 3.8 which was

verbally interpreted as agree. This means that the

respondents agreed that Automation and AI increase

productivity and efficiency of output which gives some

breathing space and improving mental health in the

workplace.

Table 2.1 declared that item no. 6 has a weighted

mean of 3.6 which was verbally interpreted as agree. This

means that the respondents agreed that Automation and AI

extend probability of success by making the purpose clear

and how it will fit into the organization.

The table interpreted item no. 7 as moderately agree

which has a weighted mean 2.7. This means that the

respondents moderately agreed that Automation and AI prevent

fraud by machine learning models that can detect suspicious

transactions from time to time.

37
 Item no. 8 has a weighted mean of 3.6 which was

verbally interpreted agree. This means that the respondents

agreed that Automation and AI reduces human error not

because machines are infallible but they are more

predictable and responsive to human.

Table 2.1 displayed that item no. 9 has a weighted

mean of 4.2 which was verbally interpreted as agree. This

means that the respondents agreed that Automation and AI

saves time which it replaces redundant labor.

Table 2.1 represents that item no. 10 has a weighted

mean of 3.2 which was verbally interpreted as moderately

agree. This means that the respondents moderately agreed

that Automation and AI has a better communication with a

broad mind of understanding.

The attained results was supported by a study

entitled "Automation and management control in dynamic

environments: Managing organizational flexibility and energy

efficiency in service sectors” by Paul Brown Et Al (2020).

They explained how automation-related standardization is

adjusted by enabling control attributes (repair,

flexibility, internal transparency) to advance user

flexibility. Additionally, standardization minimizes the

38
loss in energy efficiency when less optimal repair control

behaviour manifests. This study supports the results since

it stated that Automation minimizes loses in energy

efficiency when less optimal repair control behaviour

manifests that increase productivity and efficiency.

Added article from of Youyun Wen (2019) conducted a

research about "A Review of Researches on Accounting in

China Brought by Artificial Intelligence" asserted that

artificial intelligence has positive impact on accounting

field; and a consensus that basic accounting and audit work

will be replaced by artificial intelligence has been

reached. The mentioned study supports the results as it is

believed that AI is more effective and disciplined.

A study entitled “Analysis of the Impact of

Artificial Intelligence Application on the Development of

Accounting Industry” whose authors are Jiaxin Luo, Qingjun

Meng and Yan Cai (2018) which stated that intelligent

finance and accounting is the future development trend and

in the process of promoting the application of artificial

intelligence in the accounting field, it is necessary for

the country, enterprises, universities, individuals and

other parties to work together, and how to effectively solve

39
the problems arising in the process of application will be

the key. It supports advantages of AI to accountants as it

embodies the idea of AI being the future development trend.

A study of Eleonora Stancheva-Todorova (2018)

entitled “How Artificial Intelligence is Challenging

Accounting Profession” stated that the “artificial vs. human

intelligence” dilemma widely debated among academics and

practitioners, more complex AI applications can be developed

to solve some accounting problems more fully was

successfully addressed.

An article entitled “Linking Advances in Artificial

Intelligence to Skills, Occupations, and Industries” whose

authors are Edward Felten, Manav Raj and Robert Seamans

(2017) supports the results which stated that the

transportation industry and occupations are the greatest

affected by AI technology. In connection to the present

study, AI technology manipulates human life. It is efficient

to use especially to the accountants since their duties are

difficult to accomplish.

2.2 The disadvantages of using automation and AI in

Accountants
40
Table 2.2. The Disadvantages of Using Automation and AI in

Accountants

ITEM MEAN SCORE INTERPRETATION

Reliance on computer 3 MA
Unemployment 2.6 D
Accounting information 2.4 D
may be biased
Recording of fixed assets 2.5 D
at the original cost
Unanticipated errors are 3.2 MA
not known
Manipulation of accounts 3.2 MA
High capital expenditure 3.4 A
required to invest in
automation
Risks that automation 2.8 MA
subjugate rather than
serve humankind
Cyber fraud goes 3.1 MA
undetected
Automation and artificial 2.5 D
intelligence take over
the workplace

Table 2.2 elucidates the disadvantages of Automation

and Artificial Intelligence (AI) in accountants. The table

is made up of 10 columns and 3 rows. The first row is the

heading of the items and the rest are the composite mean and

its verbal interpretation. The first row represents the

disadvantage outcomes that may encounter by the accountants,

the next row is the weighted mean of the statements, while

the last row are the verbal interpretation of the results.

41
 Item no.1 got a weighted mean of 3 which was verbally

interpreted as moderately agree. This means that the

respondents are moderately agreed with the "Reliance to the

computer".

The item no. 2 got a weighted mean of 2.6 and was

verbally interpreted as disagree. The respondents are

disagreed that Artificial Intelligence can cause a job loss

or unemployment.

The item no. 3 got a weighted mean of 2.4 and it was

verbally interpreted as disagree. The respondents are

disagreed that through Artificial Intelligence, accounting

information may be biased.

Item no. 4 got a weighted mean of 2.5 and was

verbally interpreted as Disagree. The respondents are

disagreed about recording of fixed assets at original cost.

Table 2.2 illustrated that item no. 5 got a weighted

mean of 3.2 and was verbally interpreted as moderately

agree. This means that they moderately agreed that through

A.I, unanticipated errors are not known.

In item no. 6, respondents] moderately agreed that

A.I are manipulating the accounts because the item weighted

42
mean is 3.2 and was verbally interpreted as moderately

agree. High expenditure required to invest in automation.

The next item, respondents agreed. It has a weighted

mean of 3.4 and was interpreted as agree where high capital

expenditure required to invest in automation.

On the 8th item, respondents moderately agreed about

the risk of Automation may subjugate rather than serve human

kind. It got a 2.8 weighted mean and was verbally

interpreted as moderately agree.

Cyber fraud may goes undetected was on the 9th item

and it was being moderately agreed by the respondents and it

has a weighted mean of 3.1 which interpreted as moderately

agree.

The last item got a weighted mean of 2.5 and

interpreted as disagree. The respondents did not agree that

the Automation and Artificial Intelligence take over the

work place.

The attained results was supported by an article

entitled “Automation and Artificial Intelligence: How

Machines are Affecting People and Places” whose authors are

Mark Muro, Robert Maxim and Jacob Whiton (2019) which stated

43
that the present research study for it scrutinized the

impact of Automation and Artificial Intelligence (AI) and

how it affects the human labor. It conversed about the

advantage and disadvantage as well. According to the study,

Automation does not necessarily shrink the overall pool of

available jobs as well as the AI cannot handle transaction

in organization alone.

A study of Maija Keskinen and Rudo Cathrine Tarwereyi

(2019) entitled “Automation and the transformation of the

audit process: A qualitative research on the impact of

automation on the audit process” said that automation

already has an impact on the audit industry. However,

technology is still not advanced enough to make proper use

of continuous auditing. Supported that automation do not

take over the workplace.

An article of Ben Vermeulen, Jan Kesselhut,

Andreas Pyka and Pier Paolo Saviotti (2018) entitled “The

Impact of Automation on Employment: Just the Usual

Structure Change?” supported the study and stated that many

new products, services, occupations, and sectors related to

technologies such as robots and AI have yet to emerge, which

is likely to cause an underestimation of future employment.

44
After all, the actual demand for labor and wages may well be

higher. This supports the results as unemployment was proven

as not a disadvantage of using automation.

3. The problems commonly encountered in using automation

and Artificial Intelligence

Table 3. Problems Commonly Encountered in Using

Automation and Artificial Intelligence

ITEM MEAN SCORE INTERPRETATION

Computer that shuts off 3.7 A
Network overload 3.4 MA
Integration issues 3.5 A
Issue in data safety 3.4 MA
Flaws in execution 3.7 A
Data deletion or loss 3.5 A
Incorrect information 3.8 A
Software tasks that I am 3.5 A
not familiar with
System crash 4 A
Needs in diversifying my 3.1 MA
skills

Table 3 interprets the problems commonly encountered

in using automation and artificial intelligence. The table

is composed of 11 rows and 3 columns. The first row stands

for the problems that might be encountered by the

accountants, the second row is the weighted mean of the

45
items, while the last row are the verbal interpretation of

the results.

Item no. 1 has weighted mean of 3.7 which represents

agree. The respondents agreed that computer that shuts off

are one of the problems commonly encountered in using

automation and Artificial Intelligence in execution of

accounting duties.

The table displayed that item no. 2 got a weighted

mean of 3.4 which was verbally interpreted as moderately

agree. The respondents moderately agreed that network

overload or network congestion is a problem in the use of

technology.

Item no. 3 has a weighted mean of 3.5 which was

verbally interpreted as agree. This means that the

respondents agreed that one of the problems commonly

encountered in using automation and artificial intelligence

are integration issues.

Item no. 4 with a weighted mean of 3.4 which was

verbally interpreted as moderately agree revealed that issue

in data safety were also encountered by the respondents in

using automation and artificial intelligence.

46
 As portrayed in table 3, item no. 5 which is flaw in

execution has a weighted mean of 3.7 with a verbal

interpretation of agree, asserts that there is a problem in

the execution of accounting duties using automation and

artificial intelligence.

Based from the displayed results in the table, item

no. 6 has a weight mean of 3.5 which is agree. The subjects

agreed that data deletion or loss was a problem encountered,

Item no. 7 with a weighted mean of 3.8 which is

verbally interpreted as agree proved that automation and

Artificial Intelligence shows incorrect information to the

respondents that lessen accuracy in the workplace.

The table displayed that item no. 8 with a weighted

mean of 3.5 which verbally interpreted as agree showed that

as modernization continues, software tasks that the

respondents were not familiar with are one of the problems

commonly encountered in using automation and Artificial

Intelligence.

Item no. 9 which is system crash has a weighted mean

of 4 that is verbally interpreted as agree. The respondents

agreed that system crash is also encountered in using

automation and Artificial Intelligence.

47
 The last item where needs in diversifying skills has

a weighted mean of 3.1 which is verbally interpreted as

moderately agree. The respondents have a feeling of needs in

diversifying their skills in using automation and Artificial

Intelligence.

A study of Edward Felten, Manav Raj and Robert

Seamans (2019) entitled “The Occupational Impact of

Artificial Intelligence: Labor, Skills, and Polarization”

investigate the link between AI and labor by creating a new

measure that they call the AI Occupational Impact (AIOI).

These findings suggest that access to complementary skills

and technologies may play an important role in determining

the impact of AI, and that AI has the potential to

exacerbate labor market polarization. This supports the

results as it was stated that there is a potential that AI

has to exacerbate or make worse the labor market which is

coming out as an issue and complication.

The attained results was supported by an article of

Jiaxin Luo, Qingjun Meng and Yan Cai (2018) entitled

“Analysis of the Impact of Artificial Intelligence

Application on the Development of Accounting Industry” as it

asserts that accounting industry should also strengthen the

48
main position of artificial intelligence application in the

process of reform and innovation. In the process of

promoting the application of artificial intelligence in the

accounting field, it is necessary for the country,

enterprises, universities, individuals and other parties to

work together, and how to effectively solve the problems

arising in the process of application will be the key.

CHAPTER 5

Summary of Findings, Conclusions and Recommendations

49
 This chapter aims to cover-up the end result of the

study. It presents the research work undertaken, the

conclusions drawn and the recommendations made as an

outgrowth of the study.

Summary

The main purpose of this study is to assess the

effects of using Automation and Artificial Intelligence

Taking Over Traditional Accounting Duties. Specifically, it

attempted to answer the following questions:

1. What are the factors that affect Accountants in using

automation and AI taking over traditional Accounting

Duties?

2. What are the advantages and disadvantages of using

automation and AI in Accountants?

3. What are the problems commonly encountered in using

automation and Artificial Intelligence?

Summary of Findings

Based from the results of survey recorded by the

researchers, the following were the summary of the findings:

50
1. Factors specifically, online invoices, data entry,

regulatory compliance, data interpretation, margins of error,

amount of data gathered, processing of documents, monitoring of

internal controls and systems, Internet financial reporting,

limitation faced in the previous decades got means which were

verbally interpreted as agree. It indicated that all these

factors affect accountants in using automation and AI taking

over traditional accounting duties.

2.1 Having new and improve interfaces was verbally interpreted

as strongly agree. Relieves information overload, minimize

errors, can perform complex task, increase productivity and

efficiency of output, extend probability of success, reduces

human error and saves time got the means were verbally

interpreted as agree and prevent fraud and better communication

got the means were verbally interpreted as moderately agree. It

showed that all these items are the advantages of using

automation and AI to accountants.

2.2 High capital expenditure required to invest in automation

got a mean that was verbally interpreted as agree and items

reliance on computer, manipulation of accounts, risks that

automation subjugate rather than serve humankind, cyber fraud

goes undetected were verbally interpreted as moderately agree.

51
It indicated that these items are the disadvantages of using

automation and AI in accountants. On the other hand, items

unemployment, accounting information may be biased, recording

of fixed assets at the original cost, automation and artificial

intelligence take over the workplace got the means which were

verbally interpreted as disagree. It showed that these were not

negatively affected by automation and AI.

3. Items specifically, computer that shuts off, integration

issues, flaws in execution, data deletion or loss, incorrect

information, software tasks that were not familiar with, and

system crash got means which were verbally interpreted as

agree. Network overload, issue in data safety, and needs in

diversifying skills were verbally interpreted as moderately

agree. It indicates all these items were problems commonly

encountered and that the respondents agreed that there are

problems commonly encountered in using automation and AI.

Conclusions

Based on the findings, the researchers concluded the

following:

52
 1. There were factors that affect Accountants in using

automation and AI taking over traditional Accounting

Duties, therefore, the null hypothesis presented was

rejected.

2. There were major differences present between using and

not using automation and AI, therefore, the null

hypothesis presented was rejected.

3. There were problems commonly encountered in using

automation and AI, therefore, the null hypothesis was

rejected.

Recommendations

After the study accomplished by the researchers, the

following recommendations were suggested:

1. The researchers recommend employers to provide series

of trainings for accountants to be better equipped with

using automation and AI applications to lessen the

problems they commonly encounter in their duties.

2. The researchers recommend teaching required

competencies in using smart technologies to accounting

students in preparation with the overwhelming

53
 differences of performing accounting duties

traditionally to having automation and AI applications.

3. The researchers recommend future researchers to conduct

further study concerning automation and artificial

intelligence (AI) taking over traditional accounting

duties for more specific results.

4. The researchers suggest future researchers to have a

comprehensive study about other factors that may affect

accountants in using automation and artificial

intelligence (AI).

5. The researchers recommend future researchers to study

how automation and artificial intelligence (AI)

challenge accounting profession.

6. For similar study, future researchers are highly

advised to conduct the research into a larger number of

respondents.

54