CIMA E1 Syllabus B. Technology In A Digital World - Artificial Intelligence - Notes ^{7 / 12}

Artificial Intelligence

Kaplan and Haenlein’s definition of Artificial intelligence is: a system’s ability to correctly interpret external data, to learn from such data, and to use those learnings to achieve specific goals and tasks through flexible adaptation.

It can also be described as the ability of a computer to assist a human operator to make decisions and solve problems.

One of the major areas of controversy in AI research is the extent to which Artificial Intelligence can be trusted to make ethical decisions or to execute morally defensible tasks. Whether machine learning can incorporate "moral learning" or a "conscience" is an open question.

AI can be used for:

1. Fraud detection through more sophisticated, machine learning models of ‘typical’ vs atypical (i.e. suspicious) activities

2. Forecasting to analyse and constantly update its predictions based on past and recent trends

3. Coding accounting entries and improving on the accuracy of rules-based approaches

4. Effectively analysing informal and qualitative data in more systematic ways than humans, e.g. emails

5. Automating repetitive tasks and operations, allowing employees to focus on more creative and value-added tasks.

Machine Learning

Machine learning is part of the world of AI, it is a more advanced level of AI and essentially involves systems that learn from experience and refine the codes upon which they are based.