How CPA firms can master an AI-powered growth mindset

Important work falls into two categories — urgent and not urgent. Deadlines, filings, and meetings demand immediate attention. Meanwhile, activities like strategic planning, vision-setting, process improvement, and advisory conversations are essential to long-term success but rarely feel urgent. As a result, they are the first to be sacrificed when workloads increase.

Adding to the challenge is the rapid pace of technological change. Many tax and accounting professionals feel both the pressure to adopt new tools and the fatigue that comes with constant transformation. Without a clear strategy, technology can feel like another burden rather than a solution.

This situation is where an AI-powered growth mindset becomes critical. When applied thoughtfully, AI can help you break free from the tyranny of the urgent — freeing up capacity, reducing stress, and enabling your firm to focus on higher-value, more fulfilling work. 

In this white paper, you’ll learn how to reclaim capacity in your firm, how to purposefully reinvest it, and why embracing an AI-powered approach is critical in unlocking new revenue streams.

Understanding an AI-powered growth mindset

As conceived by American psychologist Carol Dweck, a growth mindset is the belief that people can develop abilities and intelligence through dedication and hard work. This idea contrasts with a fixed mindset, where individuals believe their abilities are static and unchangeable. 

To take it one step further, an AI-powered growth mindset is an approach to work and learning that pairs a commitment to continuous improvement with the strategic use of AI tools to expand capacity, adapt faster to change, and unlock new value. It emphasizes using AI not simply to automate tasks, but to enhance human judgment by turning data into insight, reducing friction in daily work, and freeing time and energy for higher-impact activities. 

AI literacy, defined as the ability to understand, evaluate, and effectively use AI tools in a responsible and informed way, is a core capability of an AI-powered mindset. It goes beyond simply knowing what AI is to understanding how it can be applied, where it adds value, and what its limitations are.

Continuous learning and ongoing process improvements are equally as important in achieving an AI-powered mindset so that your firm can realize clear, compounding benefits, including:

• Faster adaptation to change. Ongoing learning helps teams keep pace with rapidly evolving AI capabilities, regulations, and best practices.
• Greater ROI from AI investments. Regularly refining processes ensures AI tools are applied where they deliver the most impact, not just where they are easiest to deploy.
• Improved accuracy and trust. Iterative learning enables professionals to better validate AI outputs, reduce errors, and strengthen confidence in results.
• Scalable efficiency gains. Process improvement allows AI-driven efficiencies to be embedded into workflows, creating repeatable, firm-wide benefits.
• More time for high-value work. As processes mature, AI reduces manual effort and cognitive load, freeing professionals to focus on strategic thinking, advisory services, and client relationships.

At the end of the day, an AI-powered mindset encourages your firm to actively refine how work gets done. By leveraging AI to reduce friction, surface deeper insights, adapt more quickly to change, you’ll free capacity for more strategic and engaging advisory work.

Does your CPA firm have an AI-powered growth mindset?

Firm leaders and staff alike should assess their current mindset and identify areas where they can cultivate an AI-powered growth mindset. Questions to consider include:

• How do we think about skills and capability?
  Do we believe expertise is fixed, or that skills can be developed and strengthened through learning and experience?

• How do we respond to challenges?
  Do we avoid change and complexity, or treat them as opportunities to grow and improve?

• How do we handle feedback?
  Do we become defensive when challenged, or stay open and use feedback to learn and adapt?

• What does effort signal in our culture?
  Is effort seen as a weakness, or as a necessary step toward mastery and innovation?

• How do we react to setbacks?
  Do we assign blame and stall progress, or reflect, adjust, and move forward stronger?

• How do we view AI today?
  Do we see AI as a capability that strengthens our professionals or as a threat to expertise and roles?

• Are we willing to learn AI tools?
  Are leaders and teams actively building AI literacy and encouraging hands-on experimentation?

• How do we respond to the AI learning curve?
  Do we expect instant perfection, or allow space for iteration, learning, and improvement?

• Do we encourage experimentation with AI?
  Are teams empowered to test AI in workflows and take measured risks without fear of failure?

• How do we integrate AI with professional judgment and handle errors?
  Do we treat AI outputs as decision supports that enhance human expertise, and do we view mistakes as learning opportunities to refine processes, data, and oversight?

By reflecting honestly on these questions, your firm can identify where it currently stands and where growth is possible. Cultivating an AI-powered growth mindset isn’t just about adopting technology; it’s about fostering a culture of continuous learning, experimentation, and collaboration. 

Firms that embrace both human potential and AI capabilities position themselves to adapt faster, make better-informed decisions, and unlock new opportunities for innovation and value creation.

How an AI-powered growth mindset unlocks advisory opportunities for CPA firms

For many firms, the barrier to expanding advisory services is confidence. AI has already created the capacity to move beyond compliance by reducing manual work, accelerating analysis, and surfacing valuable insights. Yet having the ability to offer advisory services is different from having the belief that you can successfully step into the role of trusted advisor. This gap is where an AI-powered growth mindset becomes essential. Firms that adopt this mindset recognize that growth comes not just from new tools, but from a willingness to evolve how they see their role and value to clients.

AI-generated insights become fuel for meaningful client conversations rather than static answers. Professionals with a growth mindset view AI outputs as starting points that prompt questions, exploration, and deeper understanding based on each client’s unique circumstances. In this way, AI supports — not replaces —the human connection that defines effective advisory relationships.

Creating capacity for growth

Capacity challenges are common in CPA firms, where deadlines and talent shortages make it feel like there aren’t enough hours in the day to get everything done. However, creating bandwidth is essential for firms wanting to expand their service offerings to include high-value advisory services.

A recent Thomson Reuters Institute survey of 150 tax firm decision-makers demonstrates that advisory revenue is outpacing compliance. In fact, 85% of firms reported an average 13% growth in advisory services last year, with 88% noting advisory revenue grew faster than compliance. Advisory services now make up 31% of firm revenue and serve 35% of clients, signaling a clear shift in business models and client expectations. 

Most firms (87%) plan to expand advisory offerings further in the next year, highlighting the urgency of freeing capacity to meet this demand.

Strategies to increase bandwidth

While we can’t create more hours in the day, other ways exist to increase capacity. Here are a few strategies to consider incorporating:

1. Upskill your team. Among firms that are growing their advisory services business, more than 50% say they’ve noticed a skills gap among their teams. As such, it is important to prioritize training in client needs analysis and advisory solution selling. Also consider reallocating tasks to appropriate team members to optimize efficiency and ensure tasks are aligned with individual skill sets.
2. Focus on ideal clients. Develop a clear ideal client profile and prioritize advisory services for these clients. Conduct regular portfolio reviews, schedule frequent touchpoints, and package a menu of services so you can serve fewer clients, earn more revenue, and enjoy better employee engagement.
3. Leverage AI for routine work. Use AI to streamline workflows, reduce manual effort, and improve efficiencies to free staff to focus on higher-value advisory work. This strategy enhances both employee satisfaction and client experience.
4. Measure and optimize workflows. Track time and processes to identify bottlenecks, refine routines, and continuously improve efficiency. This move creates space for innovation and high-impact advisory work.
5. Shift firm culture. Reinforce that your firm is advisory-first, with transactional work supporting higher-value services. Realign roles to give staff opportunities to learn, innovate, and provide strategic guidance. Firms that embrace a culture of continuous improvement can tackle challenges more effectively and unlock new opportunities for growth.

Thomson Reuters case study: How streamlining processes to unlocks capacity

One of our clients was struggling with billing. Their processes were tangled with unnecessary loops, wasted steps, and inefficiencies that kept staff bogged down and clients waiting. It was clear something had to change.

We partnered with the firm to revamp their workflow through a targeted, AI-powered process improvement initiative. The results were dramatic; billing became faster, cleaner, and far more efficient — transforming a cumbersome system into a smooth-running engine.

The impact is clear in the numbers:

• Up to 80% fewer process steps in billing
• An 18% reduction in days tied up in work in progress (WIP)

But the benefits didn’t stop there. The same approach, applied to the audit department, allowed the firm to:

• Submit 16% more reports to quality control
• Cut average audit fieldwork from 54 days to 26 days

Meanwhile, the tax department doubled the number of returns completed by late February, freeing staff to focus on higher-value advisory work.

These aren’t just statistics. They’re proof that thoughtful process improvement can dramatically increase capacity, reduce stress on staff, and create room for strategic, revenue-driving activities.

Leveraging technology to create capacity

Another way to increase your firm’s bandwidth is by leveraging technology, which doesn’t necessarily mean investing in new technology. Many CPA firms are missing out on the ability to create efficiencies by maximizing the technology they already have.

Maximizing technology use

So, how can your firm get a more significant return on investment from your existing technology?

• Leverage the intersection of process and technology. When you align your processes and technology, the whole is greater than the sum of its parts.
• Identify subject-matter experts. Identify the people in your firm who have a passion for technology or a deep understanding of the tools you use. Give them time to learn and teach.
• Stay current on new developments. If you work with forward-thinking solution providers, they are constantly adding new features and functionality to their products. Make sure you’re taking advantage of new features and security updates. 
• Build partnerships with technology providers. Collaborate with providers to understand and utilize all software features and determine which ones are on the horizon.
• Identify behavior versus technology issues. Often, people have frustration with software that has nothing to do with the platform itself. Differentiate between issues caused by user behavior and by the technology itself. Change your processes and behaviors to maximize the technology.

AI as a capacity multiplier for CPA firms

When applied thoughtfully, AI acts as a capacity multiplier, reducing low-value work while expanding a firm’s ability to deliver insight-driven, advisory-focused services.

Rather than treating AI as a standalone tool, firms with an AI-powered growth mindset embed AI into everyday workflows to support judgment, accelerate analysis, and surface opportunities that would otherwise remain hidden.

Key AI use cases creating real capacity today include:

• AI-powered research. AI-driven tax and accounting research tools dramatically reduce time spent searching for authoritative guidance, allowing professionals to move more quickly from question to insight and from insight to client action.
• AI for client insights and predictive analytics. AI can analyze client data across engagements to identify trends, risks, and opportunities helping firms proactively deliver advisory recommendations rather than reacting after the fact.
• AI assistants for document drafting and review. Using AI-powered assistants can support the drafting, summarization, and review of client communications, memos, and reports — reducing turnaround time while maintaining professional oversight.
• AI for tax planning scenario analysis. AI enables faster modeling of tax strategies and outcomes across multiple scenarios, supporting deeper planning conversations and more confident recommendations.

Importantly, firms do not need to automate entire workflows to see results. Small, targeted improvements to repetitive tasks often deliver outsized returns. Common areas where firms are successfully applying automation and AI include:

• Opening and categorizing emails and attachments
• Extracting and validating data from documents
• Drafting and summarizing communications
• Populating forms and workpapers
• Performing calculations and scenario modeling
• Moving files and managing workflows
• Connecting systems and APIs
• Applying rules-based logic and decision support

Considerations for exploring AI-enabled technologies

As discussed in a recent white paper, successful adoption is less about chasing tools and more about making intentional choices. When evaluating AI solutions, firms should consider:

• Purpose before technology. Start with the problem you want to solve — capacity constraints, advisory growth, client responsiveness — and evaluate AI based on its ability to address those needs.
• Human-in-the-loop design. Choose AI tools that support professional judgment rather than replace it to ensure transparency, explainability, and oversight.
• Integration with existing workflows. AI should fit naturally into how work gets done today at your firm, instead of creating parallel systems or additional complexity.
• Data quality and security. The effectiveness of AI depends on the quality of underlying data and the safeguards in place to protect sensitive information.
• Adoption and learning curve. The most impactful AI tools are those your teams are willing and able to use. Prioritize solutions that balance sophistication with usability.

By approaching AI with clarity and intention, your firm can move beyond experimentation and begin using AI as a practical, scalable lever for long-term competitiveness.

Technology’s impact on culture

To truly understand how technology impacts firm culture, we need to understand the changes taking place inside firms — and how AI is enabling this shift.

Today's firms have a pyramid structure, with many doers and preparers at the base; fewer thinkers and analyzers who see the big picture; even fewer relationship builders who really connect with clients and understand their needs; and finally, a small number of strategists who focus on the firm’s business model.

The firm of tomorrow will take a different shape — a diamond rather than a pyramid. AI is a key enabler of this transformation. Much of the work traditionally done by doers and preparers can now be automated. The remaining individuals spend more time as thinkers, analyzers, and strategists, with relationship-building becoming a core responsibility across roles.

When we talk about automation, we’re not talking about automating roles, but tasks. We estimate that about 30% of the tasks professionals spend time on each day can be automated. Doing so frees people to move into the thinker/analyzer or strategist category and build relationships with clients.

This shift is already changing the job of tax professionals and the culture of accounting firms. By removing much of the repetitive and low-value work, AI enables your staff to focus on what humans do best — critical thinking, collaboration, and trusted client relationships. The result is a more engaged workforce, stronger client connections, and a culture centered on value rather than volume.

Addressing technostress and AI anxiety

As technology adoption accelerates, many firms are experiencing a new form of pressure often referred to as technostress. It shows up as burnout, anxiety about AI replacing roles, and fatigue from constant noise around “the next new tool.” This stress is rarely about technology itself, but about how quickly change is introduced and how little support people feel during that change.

When AI adoption is reactive or poorly managed, employees can feel that change is happening to them rather than with them. Common symptoms include overload, complexity, insecurity, and fear of falling behind — all of which can negatively impact morale, job satisfaction, and performance.

The solution, however, isn’t to slow down or avoid AI. It’s an AI-enabled growth mindset that emphasizes intentional adoption, human-centered change management, and confidence-building. The goal is to reduce noise, not add to it.

Here are strategies your firm can use to reduce technostress and build AI confidence:

• Adopt AI incrementally. Introduce AI in small, practical ways to solve real problems. Early wins build trust and confidence far more effectively than large, sweeping rollouts.
• Invest in effective training. Provide structured, role-based training that helps staff understand not just how to use AI, but where it fits into their work. Allow time to learn and experiment before expecting adoption in daily workflows.
• Normalize the learning curve. Acknowledge that discomfort and mistakes are part of learning. Reinforce that AI is a support tool, not a test of competence.
• Assess stress and workload regularly. Ask people how they’re feeling and whether AI is reducing friction or adding pressure. Adjust expectations and timelines as needed.
• Create protected focus time. Give staff uninterrupted time to work, learn, and adapt especially during periods of technology change.
• Set and protect boundaries. Prevent AI and technology adoption from bleeding into personal time. This includes respecting boundaries around training, experimentation, and non-billable expectations.
• Put the right people in the right roles. Empower individuals to lean into their strengths — whether that’s learning new tools, training others, or applying insights with clients. Firms are built on people, not platforms.

When approached with intention, AI reduces burnout rather than contributing to it. By quieting the noise, and supporting staff through change, your firm can use AI to create a healthier, more resilient culture.

Why your mindset makes all the difference

As firms navigate the rapid rise of AI and automation, one truth becomes unmistakable — technology provides the tools, but mindset determines the outcome. 

Firms that pair AI with a growth mindset can overcome the “tyranny of the urgent” and break free from “doer/preparer” mode. When you let AI become a catalyst for capacity, you and your staff create space to become strategists, thinkers, and relationship builders.

Solutions like Practice Forward and Ready to Advise from Thomson Reuters help firms cultivate this opportunity by providing structured advisory frameworks, AI-driven insights, and guided workflows that turn freed capacity into confident advisory conversations. 

Learn how the power of Practice Forward + Ready to Advise enables your firm to move beyond efficiency gains and toward sustainable growth, stronger client relationships, and a more resilient firm culture.