Facilitating Artificial Intelligence and Block Chain Systems, Partnerships and Technologies: Emerging Global Actors and Players in the Financial Reporting Framework

Abstract

With ever expanding possibilities for innovative advances and technological breakthroughs, the need for facilitating techniques to ensure that economic and corporate governance measures can match or rather keep up with such pace of development, is becoming more evident. Artificial Intelligence (AI), vertical integration and block chain systems and technologies will have increasing roles to play, particularly in respect of financial reporting. Challenges presented with Artificial Intelligence and Block Chain Systems incorporate the need for greater certainty and tested (and proven) procedures with controls and governance in respect of bionic collaborations between humans and technology. In their publication “Harnessing Innovation to Lead the Bionic Lending Revolution (© 2019 PwC)”, Pollini, Hernandez, Prescher and Shipley highlight the following in respect of the “Bionic Revolution”: “With the onset of the fourth industrial revolution (4IR), consumer lending organizations are facing altogether new questions about the future. The lending environment has already experienced vast change; yet, we are quickly seeing a transition into a marketplace of end-to-end home ownership offerings and financial health ecosystems that are likely to trigger a revolution rather than the next stage of evolution.” As well as illustrating and addressing certain questions and challenges which Artificial Intelligence and Block chain technologies face, possible steps forward, and why Blockchain technology, particularly, still has quite a way to go, this paper highlights how such technologies can play vital roles in respect of their impact on the concept of “internal controls over financial reporting.”