See how both the Big 4 and smaller businesses are leveraging AI in their workflows.
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In today's fast-changing business world, ignoring technology is not an option, and the field of accounting is no exception.
Artificial intelligence (AI) has been a game-changer, helping accounting firms streamline processes, improve accuracy, and provide more value to clients. Yet, accounting firms remain cautious about implementing GenAI technology into their workflows. Generative AI in Professional Services 2024 Report A Thomson Reuters Institute survey found that 30% of tax and accounting firms are considering using GenAI tools, while 49% have no current plans to do so.
How are industry-leading companies implementing GenAI technology? In this article, we explore how various accounting firms are leveraging AI in their operations to increase efficiency and excellence in their services.
How many accounting firms are using AI?
According to survey respondents: Tax Companies identified as using Gen AI Technology, 13% Corporate Planned use technology soon.
of Adoption of AI in the accounting industry In recent years, the number of accounting firms has been increasing. From global giants to small local accounting firms, accounting firms of all sizes are Utilizing AI solutions to enhance servicesThis change is being driven by the realization that AI can automate routine tasks, reduce errors and free up accountants to focus on higher-value advisory work.
Interestingly, accountants appear to be introducing GenAI technology into their practices through personal open-source tools rather than industry-specific tools: 27% of tax firm survey respondents who are already using GenAI tools are using open-source technologies (e.g. ChatGPT) compared to 8% of those using industry-specific tools.
this As more industry-specific technology providers adopt the technology, the trend could change quickly. themselves Gen AI A solution will likely be found within the next few years.
How are the Big 4 using artificial intelligence?
The “Big 4” accounting firms — Deloitte, Ernst & Young (EY), PwC, and KPMG — are at the forefront of AI adoption. They are investing heavily in AI-powered tools and solutions to provide more advanced and insightful services to their clients. Here's how they're using AI:
- Document Review: Deloitte Developed an in-house automated document review platformThe tool uses cognitive technology and fits into practitioners' existing workflows, allowing it to evaluate entire contracts to find key information.
- audit: EY is incorporating AI technology into its audit processWe use AI to extract and analyze data from unstructured data such as contracts, and analyze large data sets to help address the risk of material misstatements due to fraud.
- that: PwC's in-house team developed a customized software application It's for employees who synthesize data, complete and review code, generate documentation, etc. Thanks to GenAI, we've seen a 20%-50% increase in productivity in our development process. Additionally, PwC professionals will have access to an enterprise version of ChatGPT-4o for themselves and their clients.
- Client Solutions: KPMG's Trusted AI Framework We help our member companies' clients design, build, deploy and use AI technology solutions in a responsible and ethical way, building loyalty and partnerships.
Special Report2024 Generative AI in Professional Services We explore how professionals perceive the use of generative AI in the workplace and the extent to which they use and integrate the technology into their processes. |
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How are small accounting firms using AI?
Smaller accounting firms may not have the same resources as the Big 4, but they are embracing AI to stay competitive and provide better service. According to the GenAI report, the top five use cases for tax firms using or planning to use GenAI are:
- Accounting/Bookkeeping Automation: Companies AI-powered software It automatically categorizes expenses, reconciles accounts, and generates financial reports, saving your business time and reducing the risk of manual errors.
- Tax Audit: Companies AI-powered algorithms in tax audit tools We return data from human-edited, tax-specific content, which gives you fast, accurate, and reliable answers from trusted sources.
- Prepare your tax return: Companies are using AI to Automate data extraction and analysis GenAI extracts taxes from various financial documents, significantly reducing the time and effort required to prepare accurate tax returns, and identifies applicable deductions and credits tailored to individual or corporate financial scenarios, ensuring compliance and optimization of tax obligations.
- Tax Advice: Companies AI tools that generate predictive insightshelping clients plan future tax implications based on financial decisions, which will push tax professionals to take on a more strategic role and provide more value-added services.
- Document Review: Companies can use AI to summarize key points from contracts, invoices, and receipts and quickly identify anomalies that require further investigation. This capability not only speeds up the review process, but also improves the accuracy and reliability of financial audits and compliance checks.
Among companies that actively use or plan to use Gen AI42% said they use technology every day or multiple times a day. addition 31% said they use it weekly.
Approach AI with curiosity
In the accounting world, AI is an opportunity, not a threat. AI empowers businesses of all sizes to deliver better service, become more efficient, and succeed in an ever-changing industry. As AI continues to evolve, those who approach it with a curious mind and an openness to new technology will be at the forefront of this trend.
If you're interested in exploring the world of AI in accounting, join the AI @ Thomson Reuters community, where you can connect with experts, learn about the latest AI trends and unlock the full potential of AI in your accounting practice. To read and download the full 2024 edition Gen AI Professional Services RReportsVisit Thomson ReutersreportAI in Professional Services.
