AI can transform accounting

Accountants are taking a leading role in shaping artificial intelligence (AI) and data strategies across businesses.

An ACCA report, Smart Alliance: Accounting Expertise Meets Machine Intelligence, found 56 per cent of respondents had an advisory role in adopting AI, and 20 per cent said they were the strategic owners.

Smart Alliance revealed that businesses are investing in AI. Mid- to large-sized organisations have committed the greatest sums to AI implementation over the most recent financial year.

Among organisations with revenues exceeding US$1 billion, more than a quarter invested over half a million dollars in AI projects in the past year alone.

Smart Alliance author Alistair Brisbourne, head of technology research, ACCA, said: "The survey revealed that three-quarters of all respondents are expecting to increase their AI investments in the coming year. This surge in commitment is not merely about keeping pace with technological trends, it reflects a growing recognition of AI's potential to drive real business value in the accounting sphere."

The survey confirms AI is a tool to enhance the skills of accounting professionals rather than replace them.

AI in accounting and assurance is about reimagining the roles of finance professionals focused on analysis and interpretation, strategy and high-level decision-making.

It is about leveraging data in innovative and powerful ways to enhance decision-making and streamline processes through the application of tools such as machine learning (ML), computer vision (CV), natural language processing (NLP) and generative AI (GenAI).

Based on interviews and a survey of more than 900 accounting leaders who are already using AI, the report provides insights into strategic approaches, challenges, risks – including ethical questions – and the outlook for AI in the profession. The survey reveals a widespread acceptance that the finance function can be improved by AI, belying the stereotype of a conservative profession.

However, the survey also found AI adoption is not uniform – over 40 per cent of large corporates are using AI for data analysis and reporting, but fewer than 30 per cent of sole practitioners and small or medium-sized practices (SMPs) have done so.

The survey also reveals different sectors are focusing on different uses with organisations pursuing several outcomes through AI initiatives, including include improving the quality of products and services, boosting the efficiency of existing processes, upskilling employees, expanding organisational capabilities, enhancing decision-making, driving competitive advantage and reducing operational costs.

As data becomes central to organisational success, finance departments are well placed to foster cross-functional collaboration, bridge the gap between organisational strategy and day-to-day operations, and ensure AI initiatives align with business objectives.

Smart alliance serves as a crucial resource for accounting and finance professionals. It contributes to ACCA’s work on the evolution of the finance function.

"The future of AI in accounting appears both exciting and transformative. Our survey data, coupled with insights from industry leaders, paints a picture of a profession on the cusp of significant change – driven by advancing AI technologies and evolving business needs," said Brisbourne.