Artificial Intelligence (AI)

tl;drArtificial intelligence is software that performs tasks which have historically required human judgment: reading a document, recognizing a pattern, deciding what to do next.

In accounting, AI is the underlying capability that lets a system code a transaction, flag an anomaly, or draft a reconciliation without being told the exact steps in advance.

AI is a broad category. Machine learning, large language models, and AI agents are all specific approaches within it. What they share is the ability to generalize from data or instructions rather than following a fixed script, which is what makes them useful for the exceptions and edge cases that rule-based software can't handle.

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