Come Together
Most enterprises operate with a multitude of relational databases which have inconsistent database schemas; electronic spreadsheets; electronic word processor documents; HTML documents; PDF files; email messages; system log files; system APIs; and with what amounts to bailing wire, band aids, duct tape, and human effort holding everything together. In their new book, The Future of Accounting; Dave McComb and Cheryl Dunn call this a "bucket brigade" which is a good description.
Per one measurement, the average enterprise uses 275 software applications to get their work done. Each of those software applications don't tend to talk to one another unless work is done to integrate software with other software.
Even small and medium sized enterprises have similar issues, just fewer software applications; maybe between 10, 20, or maybe 50.
In his book, Software Wasteland, Dave McComb points out that over three quarter of IT spending is wasted.
Many people consider this normal. Me, as an accounting information systems specialist I see opportunity; opportunity for improvement.
The environment is different now that it was 50 to 70 years ago. Forty four years ago in 1982 when I started in accounting and audit we were using paper spreadsheets. Now, the consultancy Gartner estimates that the average Fortune 1000 company used 800 electronic spreadsheets to prepare its financial statements for regulator reporting.
Do you really think artificial intelligence is going to be able to work across 800 electronic spreadsheets and do anything useful? Maybe it is a time to take a step back and think about what we are doing.
As I see it, what artificial intelligence will cause is for organizations to clean up the mess that was created over the past 50 to 70 years. Why? Because, as pointed out by The AI Ladder, artificial intelligence cannot be successful if you feed it that mess. But first, The AI Ladder points out the opportunity, describing the opportunity using the metaphor, "AI is the new electricity". Quantifying this, they say that the global economic impact of artificial intelligence will be $16 trillion by 2030. They describe the opportunity:
"AI is one of the greatest challenges and opportunities of our time. It is poised to change the way people work, how enterprises operate, and how entire industries transform. AI initiatives offer more than just cost savings—they actually help organizations predict and shape future outcomes; allow people to do higher-value work; automate decisions, processes, and experiences; and reimagine new business models. Ultimately, this means increased revenue."
Then The AI Ladder goes on to explain that there is a lack of understanding with 81% of business leaders not understanding artificial intelligence; most organizations have bad data which will be completely paralyzing for organizations because artificial intelligence can only be as good as your data; the lack of the right skills on part of both business professionals and information technology professionals; trusting the recommendations made by your artificial intelligence software, artificial intelligence should not be a black box, business professionals need justification mechanisms that support conclusions; and then there is the culture issue related to the forthcoming digital transformation involving changes to organizational dynamics and how work gets done and that artificial intelligence will enable entirely new business models which were impossible in the past.
Personally, I see a massive productivity boost for accountants and auditors on the horizon. Part of the reason I can see it is because I have been trying to figure out how to make it happen for years.
AI systems require common vocabularies, structured things using that common vocabulary, well defined connections between those things need to be described, explicit business rules to eliminate the potential for "wild behavior" by the artificial intelligence, and of course you need the proper software that can reason reliably using the common vocabulary, structured things, specified connections, specified business rules.
Probability-based artificial intelligence is not a magical solution, a panacea that will somehow fix the mess that was created over the past 50 to 70 years. It is not a short cut. There is no short cut.
Some say that the debate between symbolic or rules-based artificial intelligence and neural or probability based artificial intelligence is over. Most business professionals likely don't even understand that there is a debate let alone the true facts to use to make their choice.
Remember the Beatle's song, Come Together;“ju‑ju eyeball,” “toe‑jam football,” “walrus gumboot”; have your artificial intelligence make sense out of that.
He roller-coaster, he got early warning
He got muddy water, he one mojo filter
He say, "One and one and one is three"
Got to be good-looking, 'cause he's so hard to see
Getting artificial intelligence to work effectively in an enterprise will be hard work. Getting artificial intelligence to work across an entire supply chain will be even harder. The snake oil salesmen promoting easy solutions to complex problems should be avoided.
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