The 2024 Generative AI in Professional Services research conducted by the Thomson Reuters Institute provides a comprehensive overview of the burgeoning role of GenAI across various professional sectors, including legal, tax, accounting, risk, and government.
This study captures the complex spectrum of emotions surrounding GenAI, from hope and excitement to hesitancy and concern. Despite these varied sentiments, a significant majority of professionals acknowledge the applicability of GenAI to their work, though fewer are convinced of its immediate necessity in daily operations.
The audit industry stands out with its recognition of GenAI’s potential to revolutionize tasks such as predictive analytics, flagging potential areas of concern, data collection, and more. However, it also faces challenges related to accuracy, data security, and an over-reliance on technology.
The research emphasizes the critical balance needed between leveraging GenAI to augment human work and ensuring it does not replace the essential elements of professional judgment and decision-making. Let’s take a closer look at the results from the report.
Jump to:
| Adaptation to technology |
| Perception of applicability |
| AI’s impact on audit jobs and billing |
| AI policy and regulation for audit firms |
| Future of work |
| Proactive steps for auditors |
Adaptation to technology
The audit industry is at a crossroads with GenAI. Firms are increasingly integrating these technologies into their workflows, signaling a shift towards more innovative practices. This adaptation is not just about keeping up with technology but also about leveraging it to enhance efficiency and accuracy. According to separate research from the Thomson Reuters Institute, nearly half (44%) of all respondents to its 2024 Audit Survey indicated that their audit firms were implementing or had already implemented progressive technologies, including GenAI.
“Many tax and accounting firms are starting to move from separate spreadsheets to more connected databases and systems that connect to the network. However, these changes happen slowly and are not always used by all firms.”
— Thomson Reuters Institute 2024 Generative AI in Professional Services report
Perception of applicability
In 2024, a significant 52% of professionals from tax, accounting, and audit firms recognized the necessity of applying GenAI in their operations, a noticeable increase from 49% in 2023. Similarly, in corporate sectors, this belief rose from 53% to 60%. This growing consensus highlights the perceived relevance of GenAI in modernizing audit practices.
AI’s impact on audit jobs and billing
Despite the optimism, there are concerns. About 2% of tax firm respondents foresee a significant increase in billing rates, whereas 38% expect a moderate rise. Conversely, a small fraction anticipates a decrease.
The potential impact on jobs is also under scrutiny, with fears that GenAI might lead to job losses, although it could also lead to the creation of new roles and specializations.
AI policy and regulation for audit firms
One of the challenges facing audit firms is the lack of clear directives from their clients on how to use GenAI in their services. This gap in guidance suggests a need for policies that regulate GenAI use and ensure its ethical adoption. For example, just 12% of firms indicated in the survey that their organizations had policies covering GenAI use. Further, only 3% said they had policies specific to GenAI. There’s a pressing need for policies that restrict unauthorized use and provide clear frameworks to ensure that the adoption of GenAI is both ethical and beneficial.
Future of work
The integration of GenAI is expected to bring substantial operational changes. About 3% of respondents now consider AI or GenAI skills essential for job applicants, with 21% viewing it as a desirable skill. This shift indicates that job functions and titles are likely to evolve as the technology becomes more entrenched in daily operations.
Proactive steps for auditors
Auditors are not just passive observers; they are actively exploring and integrating GenAI technologies. This proactive approach is crucial for harnessing the benefits of technological advancements and staying competitive in a rapidly evolving industry.
“As the research shows, proactive organizations have already begun exploring how GenAI will change the future of work, and those without such inclination or planning could risk becoming quickly left behind.”
— Thomson Reuters Institute 2024 Generative AI in Professional Services report
There is a cautious optimism among audit professionals regarding GenAI. While the benefits are acknowledged, there is also a recognition of the need for structured guidance and robust policies to navigate this new terrain effectively. As we move forward, it will be essential for audit firms at all levels to engage with AI-powered technologies thoughtfully and strategically.
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