·                 Huge opportunities for better business intelligence and across a range of activities carried out by accountants
·                 Adoption of machine learning needs to be based on legitimate business need rather than just wanting to be seen as using AI
·                 Ethical challenges lie ahead - accountants need to align professional competence and due care with AI and machine learning

KUALA LUMPUR, May 17 (Bernama) -- In response to strengthening the on-going structural reforms to become a developed nation, Malaysia launched the National Policy for Industry 4.0 or Industry4WRD last year, which is expected to transform the nation’s manufacturing sector and related services to be ready for the 4^th Industrial Revolution.

As stakeholders embrace Industry 4.0, corporate Malaysia will face a new set of challenges. Accountants, being gatekeepers of the company’s finances, must adapt and learn to use the tools at their disposal to upskill themselves to remain relevant, increase credibility and competitiveness in the digital era.

The latest research published by ACCA (the Association of Chartered Certified Accountants), Machine learning: more science than fiction highlights how new technological developments have massive potential for the accountancy profession. Malaysia is one of 7 countries included in the global report that focuses on machine learning, which is the ability of computers to ‘learn’ and make decisions for predictions based on analysis of large sets of data.

The report found that a whopping 69% of accountants in Malaysia believe that the main hindrance to the adoption of machine learning (ML), a subset of artificial intelligence (AI), is the lack of skilled staff to lead the adoption.

This is a source for concern as 59% of accountants project that AI will become reality for corporate Malaysia within the next three years. With this timeline in mind only a fifth (20%) of organisations are in initial discussions and exploring ideas for adoption, while 10% are in testing phases with launch dates of 12 months. A meagre 5% of organisations are in full production mode, already sifting through live data.

Juxtaposed with this, 36% of respondents have no plans for adoption at all. Some of the reasons they may not wish to implement machine learning could be cost implications (54%) and not seeing any clear benefits from using machine learning (21%).

“Machine learning is a critical area of development for accountants. Looking ahead it will be crucial to understand its value and benefits, as well as the ethical challenges it presents. In all this, the starting point has to be a legitimate business need with a clear understanding of what it can bring to the organisation,” says Narayanan Vaidyanathan, the report’s author and Head of Business Insights at ACCA.
 
“Artificial Intelligence (AI) and machine learning can add value to the work accountants do – from generating valuable insights for business decision-making, to fraud detection, risk assessment, understanding complexities in taxation and also with more effective non-financial reporting. So the accountancy profession needs to understand how AI and machine learning works, especially given its role in influencing the trust we have in the decisions of these systems,” he adds.

Edward Ling, Head of ACCA Malaysia says, “Machine learning’s entrance into the accountancy mainstream is a huge opportunity here in Malaysia, and also globally. This is an area where professional accountants have the chance to develop a core understanding of emerging technologies, while continually build their interpretive, contextual and relationship-led skills. They can then truly benefit from the ability of technologies like machine learning to support them with intelligent analysis of vast amounts of data.”

ACCA emphasises that at a minimum, all finance professionals should know how AI is evolving and be alert to how the developing capabilities could overlap with their impact on their roles. To prepare for the digital future, ACCA already examines a range of digital topics within its Masters level ACCA Qualification. It has also enhanced the digital content across many of the exams for students, while also ensuring digital is weaved into members’ continuous professional development.

Notes to Editor

About the research

Research for the report was conducted 18 January to 4 February 2019. The report can be found here:
https://www.accaglobal.com/gb/en/professional-insights/technology/machine-learning.html

Source: ACCA Malaysia 

FOR MORE INFORMATION, PLEASE CONTACT:
Name: Adeline Fong
Senior Manager, Public Relations
ACCA Malaysia
Tel: +603-2289 0117 / +6012-381 5589    
Email: adeline.fong@accaglobal.com

--BERNAMA