Technological Disruption in Accounting: RegTech, AI, and AI-OCR

Abstract

The dynamic landscape of the accounting industry is on the precipice of an unprecedented technological shift, driven by Regulatory Technology (RegTech), Artificial Intelligence (AI), and AI-enabled Optical Character Recognition (AI-OCR). This paper provides an in-depth exploration of these technologies, their integrations, and their transformative impact on accounting practices. RegTech's pivotal role in simplifying compliance procedures, bolstering efficiency in regulatory reporting, and proactive risk management is examined. The paper further investigates AI's influence on automation, data analysis, risk detection, and operational efficiency within the RegTech framework. The capabilities of AI-OCR in revolutionizing data extraction and management practices are also scrutinized. In amalgamation, these technologies herald a new era in accounting, with implications on auditing processes, client service, innovation, growth, and cloud-based system adaptability. Nevertheless, challenges such as data security, regulatory hurdles, and technology deployment stand in the way of seamless adoption. The paper concludes with insights into the future prospects of these technologies and their potential to redefine the accounting industry.

Enhancing accounting operations through cloud computing: A review and implementation guide

“…The integration of cloud computing into accounting practices has brought significant concerns regarding security and compliance to the forefront, as highlighted in recent scholarly research. Malladhi (2023) discusses the technological disruption in accounting, particularly focusing on RegTech, AI, and AI-OCR. The study emphasizes the role of regulatory technology in simplifying compliance procedures and enhancing efficiency in regulatory reporting within the framework of cloud-based accounting systems.…”

“…The integration of advanced technologies in accounting, particularly cloud computing, AI, and RegTech, has catalyzed a significant transformation in the field, warranting a critical discussion on its multifaceted impact. Malladhi's (2023) exploration into the disruptive nature of these technologies in accounting underscores a pivotal shift from traditional practices. This shift is not merely about adopting new tools; it represents a fundamental change in how accounting processes are conceptualized and executed.…”

“…The integration of advanced technologies such as REGTECH, AI, and AI-OCR has led to a significant transformation in the field of accounting. Malladhi (2023) highlights the disruptive nature of these technologies, emphasizing that they represent more than just tools; they signify a fundamental shift in accounting practices. One of the prominent questions that arises in this context is how accountants' roles are evolving.…”

“…In addition to data security and privacy, the regulatory environment also addresses compliance and reporting requirements within cloud-based accounting systems. Malladhi (2023) emphasizes the role of regulatory technology (REGTECH) in simplifying compliance procedures and enhancing efficiency in regulatory reporting. REGTECH solutions leverage advanced technologies like AI to streamline compliance processes, offering real-time monitoring and automated reporting capabilities.…”