This blog post pulls together a set of information which helps someone understand the moving pieces of digital financial reporting:
- Expert systems: Expert systems are computer programs that are built to mimic human behavior and knowledge. A computer application that performs a task that would otherwise be performed by a human expert.
- Digital Financial Report Creation Vision: A digital financial report creation tool is an expert systetm. This provides an example of the types of benefits offered by such an application.
- Framework and Theory: A framework and theory is necessary.
- Artificial Intelligence: Artificial intelligence is used to make an expert system work. The term "artificial intelligence" tends to be overloaded and means different things to different people. This is a good definition of artificial intelligence as I mean the term:
- Artificial intelligence is an area of computer science that deals with giving machines the ability to seem like they have human intelligence; the power of a machine to copy intelligent human But behavior.
- Two approaches to constructing artificial intelligence: There are two approaches to building artificial intelligence:
- #1-Know how to 'write down the recipe' meaning that those with the knowledge of some business domain articulate the information in machine-readable terms. In order to effectively express information in machine-readable terms, knowledge engineering skills are necessary. This document, Knowlege Engineering Basics for Accounting Professionals, summarizes important information related to knowledge engineering.
- #2-Let the machine grow the knowledge itself. Another term for this is deep learning.
- Artificial intelligence to be 'the norm' in law firms in 2020: This article predicts that law firms will be using artificial intelligence by 2020 (only 5 years away). It does not provide a lot of specific details.
- Artificial intelligence meets the C-suite: (McKinsey) "Many of the jobs that had once seemed the sole province of humans—including those of pathologists, petroleum geologists, and law clerks—are now being performed by computers."
- Digital Financial Report Information Quality Improving: I have been tracking the quality of XBRL-based digital financial reports for three years, information quality has improved significantly. XBRL-US has created the Data Quality Committee to improve quality.
- Digital Financial Reporting Part of Larger Trend - Digital Business Reporting: A digital financial report is a type of digital business report. Another name for a digital business report is 'semantic spreadsheet'.
It would be great to synthesize all of this information into one clear, concise document.