The accounting world, which is sometimes perceived as mundane is about to be dramatically changed by artificial intelligence, the Internet of Things and the blockchain, says ANTON VAN HEERDEN, MD and Executive Vice-President, Africa & Middle East at Sage.
If you think that tech is done with transforming the way accountants work (and every sector for that matter), you’re in for a surprise. As an accountant by qualification, I see a very bright and exciting future.
The accounting world, which is sometimes perceived as mundane is about to be dramatically changed by artificial intelligence (AI), the Internet of Things and the blockchain. Yes, recently these technologies have been spoken about at a large scale, but the job of an accountant will change as much as the first computerised accounting packages did or the arrival of mobile and cloud computing.
Invisible accounting will be built on the back of these three powerful emerging technologies, as illustrated in Leading the Invisible Accounting Revolution, a new whitepaper from Sage and Ovum.
The exciting news is that these technologies will allow for us to focus on the things we care about most, such as working with clients or the business’s leadership on strategic financial plans. What each of these technologies will do is free us from more routine admin work, while ensuring that we can work more accurately and efficiently. They will also give us more real-time visibility into our financial performance.
Smart assistance on the go
We’re all becoming rather used to speaking to machines, for example, asking Siri on our iPhones for directions or Bixby on the new Samsung devices to seek out an answer to a trivia question. The interfaces to technology are becoming more natural and conversational as we use voice, gesture or touch to interact with computers rather than a mouse and keyboard.
In the background, AI technology crunches massive datasets to help us complete our personal tasks or our work. This technology doesn’t simply follow a set of programmed rules; it can also learn from our responses and its databases to improve its functionality and its usefulness over time. For now, consumers are the biggest users of such technology, but it is rapidly moving into the business world, too.
At Sage, we recently launched our conversational bot Pegg, which works with collaboration tools like Skype, Facebook Messenger and Slack. Rather than needing to navigate a bunch of fields on your accounting software, you can simply ask Pegg questions such as: “How much money did we make this month?” or “Does anyone owe me money?”
Imagine how useful that might be if one of your customers phone you for an invoice when you’re out-and-about, and you don’t have easy access to your computer. You can also note expenses, so you don’t forget to file the receipt for your parking when you’re out on a business visit. This sort of technology is going to rapidly evolve so that you will be able to ask your virtual accounting assistant a wide range of business questions, without needing to dive into tables and fields in an accounting package to get an answer.
As an accountant, I’m always excited to find a technology or process that reduces the ‘friction’ of administration. By friction, I mean the time and effort it takes to record transactions or complete tasks.
The Internet of Things – the many smart and connected devices in the workplace – will do a great deal to reduce friction. It can give us real-time information about assets and transactions so that we don’t need to record it after the fact. For example, a telematics device or GPS in a company car could automatically capture mileage information and upload it to the accounting solution, so drivers don’t need to report it in with their logbooks. Or we can track items as they move through the supply chain for an up-to-the-second view of sales and inventory on hand.
Blockchain with a touch of human
Further into the future, the blockchain has some exciting potential for accountants. The blockchain is a type of distributed ledger or decentralised database that keeps records of digital transactions. All participants have an identical copy of the transaction that can be accessed and viewed in the present, and all parties need to verify the authenticity of a set of transactions (a block) before a new block can be added to the existing chain.
Blockchain records cannot be altered, and every transaction is recorded and verified. As such, blockchain brings new levels of trust and transparency to transactions. When we bring blockchain and smart contacts together, we can automate many processes where we have used an independent third party (like an exchange, lawyer or clearing house) to verify transactions.
In future, companies big and small could use blockchain for invoicing, documentation, contracts, and payment processing, all done with high levels of automation and low levels of friction. We’ll spend less time on ledger entry and reconciliation in the book-keeping process. However, there will still be a need for a human touch as accountants and auditors need to ensure that local tax and other regulations are applied.
Going beyond cloud computing, which is now a given starting point for many organisations, the use of AI and other innovations will lead to Sage’s vision of invisible accounting by 2020. It is a seamless and automated accounting process that will enable us to think about business growth and strategy rather than recording invoices and doing bank recons.
Earth 2050: memory chips for kids, telepathy for adults
An astonishing set of predictions for the next 30 years includes a major challenge to the privacy of our thoughts.
By 2050, most kids may be fitted with the latest memory boosting implants, and adults will have replaced mobile devices with direct connectivity through brain implants, powered by thought.
These are some of the more dramatic forecasts in Earth 2050, an award-winning, interactive multimedia project that accumulates predictions about social and technological developments for the upcoming 30 years. The aim is to identify global challenges for humanity and possible ways of solving these challenges. The website was launched in 2017 to mark Kaspersky Lab’s 20th birthday. It comprises a rich variety of predictions and future scenarios, covering a wide range of topics.
Recently a number of new contributions have been added to the site. Among them Lord Martin Rees, the UK’s Astronomer Royal, Professor at Cambridge University and former President of the Royal Society; investor and entrepreneur Steven Hoffman, Peter Tatchell, human rights campaigner, along withDmitry Galov, security researcher and Alexey Malanov, malware analyst at Kaspersky Lab.
The new visions for 2050 consider, among other things:
- The replacement of mobile devices with direct connectivity through brain implants, powered by thought – able to upload skills and knowledge in return – and the impact of this on individual consciousness and privacy of thought.
- The ability to transform all life at the genetic level through gene editing.
- The potential impact of mistakes made by advanced machine-learning systems/AI.
- The demise of current political systems and the rise of ‘citizen governments’, where ordinary people are co-opted to approve legislation.
- The end of the techno-industrial age as the world runs out of fossil fuels, leading to economic and environmental devastation.
- The end of industrial-scale meat production, as most people become vegan and meat is cultured from biopsies taken from living, outdoor reared livestock.
The hypothetical prediction for 2050 from Dmitry Galov, security researcher at Kaspersky Lab is as follows: “By 2050, our knowledge of how the brain works, and our ability to enhance or repair it is so advanced that being able to remember everything and learn new things at an outrageous speed has become commonplace. Most kids are fitted with the latest memory boosting implants to support their learning and this makes education easier than it has ever been.
“Brain damage as a result of head injury is easily repaired; memory loss is no longer a medical condition, and people suffering from mental illnesses, such as depression, are quickly cured. The technologies that underpin this have existed in some form since the late 2010s. Memory implants are in fact a natural progression from the connected deep brain stimulation implants of 2018.
“But every technology has another side – a dark side. In 2050, the medical, social and economic impact of memory boosting implants are significant, but they are also vulnerable to exploitation and cyber-abuse. New threats that have appeared in the last decade include the mass manipulation of groups through implanted or erased memories of political events or conflicts, and even the creation of ‘human botnets’.
“These botnets connect people’s brains into a network of agents controlled and operated by cybercriminals, without the knowledge of the victims themselves. Repurposed cyberthreats from previous decades are targeting the memories of world leaders for cyber-espionage, as well as those of celebrities, ordinary people and businesses with the aim of memory theft, deletion of or ‘locking’ of memories (for example, in return for a ransom).
“This landscape is only possible because, in the late 2010s when the technologies began to evolve, the potential future security vulnerabilities were not considered a priority, and the various players: healthcare, security, policy makers and more, didn’t come together to understand and address future risks.”
For more information and the full suite of inspirational and thought-provoking predictions, visit Earth 2050.
How load-shedding is killing our cellphone signals
Extensive load-shedding, combined with the theft of cell tower backup batteries and copper wire, is placing a massive strain on mobile network providers.
MTN says the majority of MTN’S sites have been equipped with battery backup systems to ensure there is enough power on site to run the system for several hours when local power goes out and the mains go down.
“With power outages on the rise, these back-up systems become imperative to keeping South Africa connected and MTN has invested heavily in generators and backup batteries to maintain communication for customers, despite the lack of electrical power,” the operator said in a statement today.
However, according to Jacqui O’Sullivan, Executive: Corporate Affairs, at MTN SA, “The high frequency of the cycles of load shedding
An additional challenge is that criminals and criminal syndicates are placing networks across the country at risk. Batteries, which can cost R28 000 per battery and upwards, are sought after on black markets – especially in neighbouring countries.
“Although MTN has improved security and is making strides in limiting instances of theft and vandalism with the assistance of the police, the increase in power outages has made this issue even more pressing,” says O’Sullivan.
Ernest Paul, General Manager: Network Operations at SA’s leading network provider MTN, says the brazen theft of batteries is an industry-wide problem and will require a broader initiative driven by communities, the private sector, police and prosecutors to bring it to a halt.
“Apart from the cost of replacing the stolen batteries and upgrading the broken infrastructure, communities suffer as the network degrades without the back-up power. This is due to the fact that any coverage gaps need to be filled. The situation is even more dire with the rolling power cuts expected due to Eskom load shedding.”
Loss of services and network quality can range from a 2-5km radius to 15km on some sites and affect 5,000 to 20,000 people. On hub sites, network coverage to entire suburbs and regions can be lost.
Click here to read more about efforts to combat copper theft.