A Study on The Use of ML to Predict Bank Failure UoB’s College of Business Administration Discusses AI in Accounting and Finance

Sakhir – University of Bahrain (Khadijah Abdusalem)

19 March 2023

The Accounting Department at the College of Business Administration at the University of Bahrain (UoB) organized a seminar titled “Artificial Intelligence in Accounting and Finance”, on Tuesday, March 14, 2023, at the hall of the Al-Salam Learning Center, which was attended by a number of the College’s faculty members and students.

Faculty member in the Accounting Department, Dawla Abdulla Almulla, confirmed that artificial intelligence (AI) plays an important role in the digital transformation of accounting and finance, as it is used to carry out repetitive and time-consuming tasks, to speed up accounting and finance work procedures, and to help accountants and financial professionals focus their time on tasks that require greater efficiency, such as making decisions and analyzing data.

Al-Mulla defined the terms AI, machine learning (ML), and deep learning (DL), noting that AI includes all devices that operate intelligently, whether they are created using ML algorithms, DL algorithms, or simple algorithms. Therefore, AI is an umbrella for all smart machines, and the difference between them is the ability of the machine to solve complex problems, without human intervention, and each of them contributes to improving the performance and productivity of institutions in different ways.

While the faculty member in the Accounting Department, Dr. Noora Abdullah Al-Zayed, presented her study on “Predicting Bank Failure Using Machine Learning”, explaining the importance of this study in contributing to decision-making, as the study aims to obtain the most accurate results in predicting failure during a certain period, using statistical analysis and machine learning. Furthermore, she added that using ML is part of AI, which helps predict bank failures with high accuracy.

The seminar concluded with a panel discussion, in which the attendees’ questions were answered about the importance of AI in the field of accounting and finance, the future of accounting and financial jobs, and remarks about its penetration into the details of practical and personal life.