{"id":103797,"date":"2017-03-23T12:03:42","date_gmt":"2017-03-23T16:03:42","guid":{"rendered":"http:\/\/countingpips.com\/?p=103797"},"modified":"2017-03-23T07:04:48","modified_gmt":"2017-03-23T11:04:48","slug":"ai-can-stop-the-slow-bleed-thats-killing-economies","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2017\/03\/ai-can-stop-the-slow-bleed-thats-killing-economies\/","title":{"rendered":"AI Can Stop the Slow Bleed That\u2019s Killing Economies"},"content":{"rendered":"
March 23, 2017<\/div>
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By WallStreetDaily.com<\/u><\/a> \"Around<\/p>\n

\"LouisIn the last few years, artificial intelligence has quickly broken beyond the realm of science fiction.<\/p>\n

Today this technology powers many things \u2014 including Google web searches, manufacturing robots and software programs that trade stocks.<\/p>\n

In fact, IBM \u2014 the creator of the AI powerhouse Watson \u2014 predicts that the AI market will catapult to $2 trillion in the next decade.<\/p>\n

Nearly every industry on the planet stands to benefit from AI\u2019s increased use.<\/p>\n

But make no mistake, few will see a larger boost than the business of corporate accounting.<\/p>

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Senior analyst Jonathan Rodriguez explains why below. As you\u2019ll learn, AI could help put $3.7 trillion of \u201cstolen\u201d cash back into the economy\u2026<\/p>\n

Louis Basenese
\nChief Investment Strategist, Wall Street Daily<\/i><\/p>\n

Fraudsters Can Run, but They Can\u2019t Hide<\/b><\/h1>\n

\"JonathanAround the globe, financial fraud costs businesses and governments trillions of dollars annually.<\/p>\n

And hardworking American taxpayers often pick up the tab.<\/p>\n

According to a 2014 study by the Association of Certified Fraud Examiners (ACFE), the typical organization loses a median of 5% of annual revenue to fraud.<\/p>\n

The ACFE estimates the total cost adds up to $3.7 trillion per year globally.<\/p>\n

In 1998, Waste Management \u2014 one of America\u2019s largest waste management firms \u2014 reported $1.7 billion in fraudulent earnings over several years.<\/p>\n

Three years later, now-defunct energy company Enron admitted to inflating earnings by $586 million. It also hid $3 billion of debt in limited partnerships.<\/p>\n

This ultimately cost shareholders \u2014 and employees \u2014 $74 billion in wealth that evaporated when the stock plummeted.<\/p>\n

In 2002, WorldCom \u2014 the second-largest long-distance phone company in the U.S. at the time \u2014 confessed to overstating profits by $3.8 billion.<\/p>\n

And it\u2019s not just private businesses\u2026.<\/p>\n

In 2014, Medicare fraud cost taxpayers $60 billion. The IRS expects tax-refund fraud to cost taxpayers $21 billion in 2016.<\/p>\n

And the FBI estimates insurance fraud to hit more than $40 billion per year, costing the average U.S. family up to $700 in increased premiums.<\/p>\n

Of course, stronger auditing systems could help fix the problem. But how do we fill in the cracks?<\/p>\n

Bring in the cyborgs\u2026<\/p>\n

Fraud Terminator: Rise of the Machines<\/b><\/h2>\n

Corporate structure and transactions have become more complicated than ever.<\/p>\n

And the more complicated transactions are, the easier it is for businesses to make mistakes \u2014 or for fraud to occur.<\/p>\n

Auditors perform many tasks that lend themselves to automation, such as reviewing balance sheets, verifying receipts and looking over official correspondence.<\/p>\n

The majority of auditors are good. They\u2019re smart people with sharp eyes for detail.<\/p>\n

But machines don\u2019t eat. They don\u2019t sleep. And they crunch numbers faster than any person can.<\/p>\n

AI isn\u2019t influenced by emotions. And unless it\u2019s been programmed to \u2014 it doesn\u2019t suffer bias when performing an audit.<\/p>\n

In fact, a recent survey of over 800 executives at the World Economic Forum predicted that 30% of corporate audits will be performed via AI by 2025.<\/p>\n

Unfortunately, people tend to focus on the number of jobs that AI could potentially eliminate, particularly in the accounting world.<\/p>\n

But if AI can help businesses make money or save money \u2014 everybody wins.<\/p>\n

Firms will grow, and shareholders will prosper.<\/p>\n

More importantly, if a robot auditor can root out company-killing fraud before it\u2019s too late, many hardworking folks will keep their jobs.<\/p>\n

The Race to AI Superiority Is On<\/b><\/h2>\n

In fact, some of the world\u2019s biggest accounting firms have already begun building AI systems to augment their audit procedures.<\/p>\n

Last year, Deloitte \u2014 the world\u2019s largest accounting firm \u2014 teamed up with Canadian AI tech firm Kira Systems to begin automating their processes.<\/p>\n

And Holland-based firm KPMG \u2014 a member of the accounting \u201cBig Four\u201d \u2014 has enlisted IBM\u2019s Watson to add artificial intelligence to its team.<\/p>\n

While AI will likely remove the need for legions of number crunchers with green visors, however, humans will never completely disappear from audits.<\/p>\n

After all, the numbers are just part of the auditing process. Someone has to make sense of raw data and communicate their insights to stakeholders \u2014 who are also people.<\/p>\n

Bottom line: AI isn\u2019t just coming. It\u2019s already here. And using this technology in corporate accounting is not only going to save businesses money, but also save jobs. Recently, Louis Basenese told True Alpha <\/i>readers that \u201c2017 is the year of AI.\u201d And he found the absolute best place for readers to invest in the space \u2014 an emerging field of AI technology that combines two critical operations into one. Click here<\/a> to learn more.<\/p>\n

On the hunt,<\/p>\n

Jonathan Rodriguez
\nSenior Analyst, Wall Street Daily\u00a0<\/i><\/p>\n

The post AI Can Stop the Slow Bleed That\u2019s Killing Economies<\/a> appeared first on Wall Street Daily<\/a>.<\/p>\n

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By WallStreetDaily.com In the last few years, artificial intelligence has quickly broken beyond the realm of science fiction. Today this technology powers many things \u2014 including Google web searches, manufacturing robots and software programs that trade stocks. In fact, IBM \u2014 the creator of the AI powerhouse Watson \u2014 predicts that the AI market will […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-103797","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/103797","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=103797"}],"version-history":[{"count":3,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/103797\/revisions"}],"predecessor-version":[{"id":103800,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/103797\/revisions\/103800"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=103797"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=103797"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=103797"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}