AI is often positioned as a way for businesses to increase productivity, automate routine tasks and create additional capacity. For accountancy firms, which are already feeling the strain from a growing talent shortage and increasing workloads, the appeal is clear.
The latest findings from our Accounting Talent Index, a survey of accounting leaders across the globe, show the extent of the pressure firms are facing. 73% expect to grow over the next 12 months, yet the same proportion say the impact of the talent shortage on their business is ‘severe’.
With a further 73% of businesses turning away potential clients due to a lack of available staff, AI could offer one way to ease these pressures. Yet, adoption across the profession remains cautious with just 16% actively investing in the technology.
That raises an obvious question: why are so few businesses investing in AI?
Why accountants remain cautious
Accountancy is built on accuracy, trust and compliance. These organisations operate in a highly regulated environment where errors can carry enormous financial and legal consequences.
This means they need to take a cautious approach to new technology, particularly when they involve sensitive financial information.
Our findings suggest leaders’ concerns fall into three main categories.
Firstly, there are questions around trust and governance. Almost one in five (19%) firms say regulatory uncertainty is slowing adoption, while similar numbers cite concerns around data security, privacy and client confidentiality.
These fears are understandable. Accountants handle large amounts of sensitive financial data every day, and protecting that data is a fundamental part of the profession. It’s no surprise then, that they want to ensure the right safeguards, governance and regulatory frameworks are in place before bringing AI into day-to-day operations.
Secondly, many businesses face practical challenges when it comes to adopting AI. Even where there is interest, not all businesses have the capability to effectively implement the tools, with 16% saying they lack the internal skills needed to do so.
Implementing AI successfully is more than just choosing the right software. Firms need employees who know how to use AI properly, understand its limitations and have the skills to roll it out effectively across the business. Without that knowledge, it will be difficult for them to reap the full benefits of AI.
Finally, there still remains a degree of scepticism amongst some accountants, with 17% believing AI is over-hyped as a solution to the profession’s talent challenges.
These findings point to a profession that is taking a considered approach to AI. Before implementing new technology or making significant investments, accountancy firms want greater certainty around governance, stronger internal capabilities and a clearer understanding of where AI can add value.
As 45% of accountants say that the talent shortage is worse than it was three years ago, it’s clear that the industry needs to consider new ways of supporting growth – and that’s where AI can come in.
Where AI can make the biggest difference
For many accountancy firms, the opportunity lies in improving existing processes rather than fundamentally changing how they operate.
Routine administrative tasks, document preparation and aspects of data analysis are all areas where AI has the potential to support teams. By reducing the time spent on repetitive work, practices can free up experienced accountants to focus on client relationships, advisory work and more complex decisions that rely on professional judgement.
However, identifying where AI can add value is just as important as introducing the technology itself. Not every task or process will be suited to automation, particularly where human judgement, client relationships or industry expertise are essential.
With firms already setting ambitious growth targets for the next 12 months, creating additional capacity will become increasingly important. AI is unlikely to solve the profession’s talent shortage on its own, but it can help businesses respond to growing demand without placing further pressure on already stretched teams.
Looking ahead
This current, cautious approach to AI reflects the principles that have always underpinned accountancy: accuracy, trust and accountability. It is categorically not down to a lack of willingness or interest.
As AI continues to evolve, accountants will need to work out how the technology can best support their teams and day-to-day operations, while adhering to the same high standards they hold themselves accountable to.
However, while AI will undoubtedly become an important part of the profession, it’s only one piece of the puzzle. Firms still need to prioritise hiring skilled accountants who can understand client needs, handle complex decision-making and provide tailored, thoughtful advice.
The long-term success of AI in accountancy will depend on how well we combine new technology with strong governance, effective processes and the expertise of our people.
