Today’s tax and accounting firms stand on the brink of a transformative era, driven by the rapid integration of Artificial Intelligence (AI). The “Future of Professionals Report 2024” by Thomson Reuters offers a comprehensive look into how firms within this sector perceive the future of their industry, particularly in relation to AI.
As the conversation continues to unfold, it is important for firms to consider the opportunities, challenges, and ethical considerations that tax and accounting firms and professionals might expect as they navigate an AI-augmented landscape.
Jump to:
| Embracing AI for enhanced productivity and client service |
| Strategic priorities and cautious AI integration |
| Ethical and regulatory considerations |
| Future expectations and work dynamics |
| Talent and staffing challenges |
| Concerns about over-reliance on AI |
| Tax and accounting professionals remain cautious about AI |
Embracing AI for enhanced productivity and client service
AI is increasingly viewed as a pivotal force in tax and accounting, with 84% of professionals in these fields seeing it as a beneficial tool. The adoption of AI is expected to automate routine tasks, which could free up to four hours per week for each professional. This significant time saving is seen not just as a boost to personal productivity but also as an opportunity for firms to engage in more strategic and value-added activities.
Many firms anticipate using the time saved to enhance client services significantly. AI’s ability to assist in drafting clearer communications in tax technical areas and improving response times to client inquiries is seen as particularly valuable. This capability is expected to transform client interactions, making firms and their teams more efficient and effective, thereby enhancing the overall client experience.
Strategic priorities and cautious AI integration
The integration of AI ranks as the fourth highest priority among tax and accounting firms. This reflects a strong interest in leveraging AI to enhance operational efficiency and client service. However, there is a cautious approach to fully integrating AI into all aspects of firms’ work.
Accounting professionals are clear that they prefer AI to assist rather than replace human input, emphasizing the need for a balanced approach that includes human oversight. And, most experts agree that AI is not destined to replace the human element in tax and accounting.
Ethical and regulatory considerations
One of the most critical aspects of AI integration for tax and accounting firms is adhering to ethical and regulatory standards. There is a consensus that AI should not replace professional judgment in critical decision-making processes, such as representing clients in legal settings or making final decisions on complex tax matters.
The report suggests that certification processes for AI systems and standards set by professional bodies could help ensure responsible use. Moreover, 96% of respondents believe that allowing AI to represent clients in court or make final decisions on complex tax matters would be a step too far, indicating a strong ethical boundary that professionals are not willing to cross.
Future expectations and work dynamics
As routine tasks are automated, tax and accounting firms expect a shift towards more complex analysis and strategic work. The growing complexity of tax laws and the strategic role of tax professionals are anticipated to drive an increase in in-house work and the value of work being outsourced to tax and accounting firms.
Additionally, with the efficiencies gained from AI, there is a strong desire among firm leaders and their teams to invest the saved time in professional development, work-life balance, and strategic initiatives. This not only could enhance job satisfaction and the overall well-being of the staff but also help firms retain or advance their competitive advantage.
Talent and staffing challenges
The report highlights a perceived significant impact of the shortage of skilled labor in the tax sector, particularly in the U.S. This concern is more acute in the tax industry than in legal or risk, fraud, and compliance sectors. There is a growing need for skilled tax professionals capable of managing and leveraging AI technologies and addressing complex tax-related challenges.
Some experts believe that, with the potential for routine tasks to be streamlined using AI-powered tax and accounting tools, it could be possible for firms to maintain their current work levels with fewer staff—and for those staff members to be able to focus more of their time on higher-value activities.
Concerns about over-reliance on AI
While the potential benefits of AI are widely recognized, there are also concerns about over-reliance on the technology. Firms are wary of AI’s role in areas requiring nuanced understanding and personal touch, such as drafting basic documents and conducting research and analysis. There are some concerns that an over-reliance on AI has the potential to diminish the development of deep expertise, specialization, and critical thinking skills among professionals.
Tax and accounting professionals remain cautious about AI
The “Future of Professionals Report 2024” paints a picture of a profession at a crossroads. Tax and accounting firms are generally optimistic about the potential of AI to revolutionize their field, enhancing efficiency, accuracy, and client service.
However, they remain cautious, emphasizing the importance of maintaining a human-centric approach in the integration of new technologies. As the profession continues to evolve, these insights will be crucial in shaping a future where AI and human expertise coexist in a balanced and ethical manner.
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