How are different accounting firms using AI?

Learn how Big 4 and smaller companies are using AI in their workflows.

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In today’s fast-paced business world, ignoring technology is not an option, and the accounting field is no exception.

Artificial intelligence (AI) has been a game-changer, helping accounting firms streamline processes, improve accuracy and deliver more value to their clients. However, companies remain cautious about adopting GenAI technology into their workflows. The 2024 Generative AI in Professional Services Report from the Thomson Reuters Institute found that 30% of tax and accounting firms are considering whether to use GenAI tools, while 49% are not currently considering using them.

How are industry-leading companies implementing GenAI technology? This article explores how different accounting firms are using AI in their operations to increase the efficiency and excellence of their services.

How many accounting firms use AI?

According to survey respondents, 8% of tax companies identified as using GénAI technology, with 13% companies I plan to use technology Soon.

THE adoption of AI in the accounting industry in recent years has increased. Accounting firms of all sizes, from global giants to local boutiques, are increasingly turn to AI solutions to improve their services. This shift is driven by the realization that AI can automate mundane tasks, reduce errors and allow accountants to focus on higher value advisory work.

Interestingly, accountants appear to be implementing GenAI technology through personal and open source tools for their work on industry-specific tools. 27% of tax firm survey respondents already using a GenAI tool are using open source technology (i.e. ChatGPT), and more than 8% are using an industry-specific tool.

This the trend may soon change as more industry-specific technology providers introduce theirs GénAI solutions in the years to come.

How do the Big 4 use artificial intelligence?

The “Big 4” accounting firms – Deloitte, Ernst & Young (EY), PwC and KPMG – have led the way in AI adoption. They have invested heavily in AI-based tools and solutions to provide customers with more advanced and insightful services. Here’s a look at how they’re using AI:

Document review: Deloitte has internally developed an automated document review platform. The tool uses cognitive technologies and integrates into their practitioners’ existing workflows, allowing them to evaluate an entire population of contracts to find key insights.
Audit: EY integrates AI technology into its audit process. They use AI to analyze and extract data from unstructured data, such as contracts, and analyze large data sets to help address the risks of material misstatement due to fraud.
HE: PwC internal teams developed custom software applications for employees who synthesize data, complete and review code, generate documentation, etc. They have seen productivity gains of 20-50% in their development processes using GenAI. In addition, PwC professionals have access to an enterprise version of ChatGPT-4o for themselves and their customers.
Customer solutions: KPMG’s Trusted AI framework helps their member companies’ customers design, build, deploy and use AI technology solutions responsibly and ethically, strengthening loyalty and partnerships.

Special report

2024 Generative AI in professional services

Learn how professionals view the use of generative AI in their workplace and to what extent they use and integrate the technology into their processes.

How are small accounting firms using AI?

Smaller accounting firms may not have the same resources as the Big 4, but they are also adopting AI to stay competitive and offer better services. According to the GenAI report, the top five use cases for tax firms using or planning to use GenAI were:

Accounting automation: Companies use AI-powered software to automatically categorize expenses, reconcile accounts and generate financial reports. This saves time and reduces the risk of manual errors for businesses.
Tax research: Companies use AI-powered algorithms in tax research tools to return data from human-edited, tax-specific content. This quickly and accurately provides authoritative answers from trusted sources.
Preparing the tax return: Businesses are using AI to automate data extraction and analysis from various financial documents, thereby significantly reducing the time and effort required to prepare accurate tax returns. GenAI also helps identify applicable deductions and credits tailored to individual or business financial scenarios, thereby ensuring compliance and optimization of tax obligations.
Tax advice: Companies use AI tools to generate predictive insights, helping clients plan for future tax implications based on their financial decisions. This gives a more strategic role to tax professionals, allowing them to offer value-added services.
Document review: Businesses use AI to summarize key points from contracts, invoices and receipts and can quickly identify anomalies that require further investigation. This feature not only speeds up the review process, but also improves the accuracy and reliability of financial audits and compliance checks.

Among companies actively using or considering using GénAI, 42% reported using technology daily, or even several times a day. A additional 31% said they use it weekly.

Approach AI with curiosity

In the world of accounting, AI is not a threat but an opportunity. It can enable businesses of all sizes to offer better services, improve efficiency and thrive in an ever-changing industry. As AI continues to advance, those who approach it with curiosity and a willingness to embrace new technologies will likely stay ahead of this trend.

If you are looking to explore the world of AI in accountingjoin AI Community @ Thomson Reuters. Here you can connect with experts, discover the latest AI trends and unlock the full potential of AI in your accounting firm. To read and download the entire 2024 GénAI in professional services A.reportvisit www.thomsonreuters.com/en/reports/2024-generative-AI-in-professional-services.html.