I have recently returned from the Nexia Asia Pacific Conference where we discussed the issue of Big Data, Artificial Intelligence (AI), Automation and Digitalisation and how it is impacting both the way our clients operate and how we need to interact with you. We also discussed how each of our firms operate as our profession has been identified as one industry where technology will have a major impact.
It is impossible to have a solution which will cover all commercial instances. It was clear throughout the conference that the success of technology change was reliant on personal intervention throughout the process. Does that mean you and I are safe? Definitely not, however we must be involved in the technology change and process and understand the ramifications for it to be successful. If we sit on our hands then we will be left behind and never catch up.
There are lessons we have already been taught on the effects of technological change and how each of us needs to be careful as we are faced with new risks every day. Some we could never have contemplated. I watched with amazement the Senate enquiry in the US of Mark Zuckerberg and the amount of information which was easily obtained and used from the accounts held on Facebook by individuals across the globe.
In fact many have said the ability to obtain, use and interpret Big Data is the key to unlock future success. Currently, our audit and assurance teams use tools to examine large amounts of data. We have gone from looking at a range of 5 -10 samples to check systems and processes to be able to check 100% of transactions. The professional skill now is in our ability to obtain the data and interpret the results.
There are many examples of businesses using Big Data and AI. Last week the ATO announced that they will examine the Roads and Traffic Authority records across all States of Australia for motor vehicles sold which have a value of greater than $10,000 to see if the Vendors have complied with GST, Income Tax and FBT rules. This is not new. Two years ago I received a phone call from the ATO on a transaction for the sale of a business which had been completed by a client. The ATO were enquiring how we were going to treat the transaction for income tax purposes even before we lodged the tax return. Many of us have searched for a potential hotel accommodation at an overseas location only to be bombarded for many weeks after offering deals for hotels in the same location. These are all examples of Big Data and AI technology, which has changed the way we businesses work.
Further, in February this year the new Notifiable Data Breaches Scheme came into existence in Australia. This has led us to change our practices on how we communicate with you to eliminate certain private information on documents prepared by us for you. An example of this is that we no longer include your tax file number, bank account details etc appearing on your income tax returns when sent to you, as this could be a breach of these new rules if the information was received accidently by a third party.
When considering the rise of cyber threats, the ease in which others can gain access to vast amount of data and information about you can lead to identity theft. The one question we should be asking is how do we prevent this from happening? There is no easy answer short of being the next Robinson Crusoe and move to a deserted island. That would work but a fairly drastic solution. Given the examples that have been illustrated in the media recently, I would be cautious of any data or confidential information which is shared on the internet as we don’t know who may have access to it or how it will be used.
