How Do Different Accounting Firms Use AI?

Artificial Intelligence (AI) is the next big thing in the tech domain. Since the launch of ChatGPT and Bard (generative AI), tech enthusiasts have been curious to explore the advantages this new technology can pose. Accounting and financial departments are already on the lookout for digital transformation to stay ahead of the competition. 

In the dynamic landscape of accounting, integrating artificial intelligence has become a transformative force, reshaping how firms manage data, make decisions, and engage with clients. 

In this blog, we explore the diverse ways accounting firms harness the power of AI to enhance efficiency, accuracy, and overall business operations. 

The Evolution of Technology 

Historically, accounting has evolved alongside technological advancements. Cloud technology integration has already boosted the accounting industry in flexibility, availability, and scalability.

With the rise of AI, accounting firms are embracing automation to streamline tedious and time-consuming tasks, including Auditing, payroll, tax, and banking. 

• Enhancing productivity and output quality, AI concurrently enhances transparency and auditability. 

• AI unlocks diverse opportunities, freeing finance teams from traditional, time-consuming tasks and allowing them to explore additional avenues for business growth. 

• AI contributes to accurate financial statement forecasting, utilizing machine learning for finance professionals to predict future trends by analyzing historical data and records. 

The Rise of AI in Accounting  

In early 2024, only about 8% of tax and accounting firms had Gen AI up and running, while another 13% were planning to use the tech soon. (thomsonreuters.com) 

As of April 2025, the landscape has changed significantly. Approximately one in five firms (21%) now have Generative AI in live production, and an additional 25% expect to implement their first rollout within the next year. Moreover, by 2027, 79% of companies anticipate that AI will be central to daily accounting operations. 

How Accounting Firms Leverage AI for Better Results 

For most accounting firms, adopting AI presents challenges such as being relatively new, lacking sufficient security measures, and providing answers that may be incomplete, misleading, or inaccurate. 

The chief concerns revolve around data security and privacy, with about two-thirds of survey respondents expressing apprehension about the risks of utilizing ChatGPT and generative AI for corporate or client work. Notably, 73% of those surveyed currently have no intention of incorporating this technology into their operations. 

Still, the trend of adopting AI in accounting is rising, with firms recognizing the potential to revolutionize traditional processes. AI is making waves in the industry, from data entry to complex financial analysis. Here are some use cases where accounting firms are utilizing AI. 

Streamlining Data Entry and Processing 

• Automation for Efficiency: One of the primary ways accounting firms leverage AI is by automating routine tasks. Mundane data entry processes are being replaced by intelligent systems, reducing manual efforts and minimizing errors. 

• Enhancing Accuracy with Machine Learning: Machine learning algorithms are pivotal in improving accuracy in data processing and financial reporting. These algorithms learn from historical data, adapting and evolving to deliver precise results. 

Fraud Detection and Security 

• Strengthening Security Measures: AI tools are instrumental in detecting and preventing fraudulent activities. By analyzing patterns and anomalies, these tools enhance financial data security, safeguarding against potential threats. 

Client Relationship Management 

• Personalized Client Interactions: AI contributes to improved client communication by offering personalized services. Chatbots, virtual assistants, and automated communication tools enhance client experiences, fostering stronger relationships. AI video dubbing can play a key role here, allowing firms to offer tailored video content in various languages and making client interactions even more personalized and effective. 

• Customized Financial Strategies: AI assists in tailoring financial strategies based on client needs and preferences. By analyzing client data, firms can provide more customized and relevant financial advice, helping clients not only manage their current finances but also explore additional investment tools—get the full story and alternatives that support informed financial decision-making. 

Predictive Cash-Flow Management 

• Spot trouble early: AI looks at all your past deposits and bills, then creates an easy-to-understand week-by-week cash forecast. 

• Get timely alerts: If it sees a cash shortfall or extra money coming in, it lets the team know so you can adjust spending or line up credit before it becomes a problem. 

Smart Audit Sampling 

• Check everything fast: Instead of reviewing just a few transactions, AI scans the entire ledger in seconds and points out any unusual spikes or repeated amounts. 

• Focus on the risks: Auditors start with a clear, color-coded map showing the riskiest items so they don’t waste time on things that look fine. 

Automated Tax Updates 

• Rules update overnight: The AI bot pulls new IRS and state tax changes every night and updates your checklists before your workday begins. 

• Catch missed deductions: While preparing returns, it flags credits and deductions clients might miss—saving time and putting more money back in their pockets. 

Expense Capture on the Go 

• Snap, don’t type: Take a photo of a receipt, and the system automatically reads the date, vendor, and amount, then records it in the right place. 

• Quick approvals: Managers get a ready-to-review list they can approve with one click, finishing expense reports much faster than before. 

Voice-to-Text Meeting Notes 

• Instant transcripts: During client calls, AI types everything out and highlights important action items—no need for note-taking. 

• Find info fast: Enter a keyword, and you can instantly jump to that exact spot in the call transcript and audio.  

ESG & Compliance Reporting 

• Collects the data for you: The tool gathers energy bills, travel logs, and supplier info into one simple dashboard that meets reporting standards. 

• Drafts reports quickly: It creates a draft report ready for review so your team can focus on polishing the story instead of digging through numbers. 

Read More: 8 Key Challenges Firms Face While Adopting AI Technologies-and How to Overcome Them 

How Do the Big 4 Use Artificial Intelligence? 

The Big 4 accounting firms, KPMG, PwC, EY, and Deloitte, are leading AI adoption for upcoming generations. These organizations have heavily invested in technology and are leveraging the same to offer perfect solutions to their clients with more advanced and insightful services. 

Deloitte 

A great example of Deloitte’s AI-facilitated process is the document review platform, which became operational in 2014. According to Deloitte, this platform automates reviewing and extracting information from contracts, significantly minimizing labor-intensive human efforts.   

The firm asserts that this technology has played a pivotal role in reducing the time spent on scrutinizing legal contract documents, invoices, financial statements, and board meeting minutes by up to 50 percent or more.  

Deloitte Catalyst: Another initiative started by Deloitte is a community of startups working together to understand and decode AI technology to integrate the applications into businesses for their potential Clients. The sole purpose of this community is to help enterprises, startups, and governments grow with the help of emerging technology, including AI.   

EY 

EY is another top firm that has started implementing Artificial Intelligence in the analysis of lease contracts. The company has stated that implementing the technology has allowed them to gain more insightful knowledge of leasing contracts, specifically the commencement date, amount to be paid, and renewal or termination options. 

As per a writeup in Accounting Today, EY is actively automating audit procedures. They’ve claimed that this initiative aims to decrease the administrative time allocated to reviewing audit documents, enabling employees to devote more time to engaging in the evaluative and analytical aspects of the process. As one would anticipate, these applications seem to be undergoing a pilot phase. 

PwC 

PwC is the second-largest accounting firm in terms of revenue. The company has begun utilizing the power of AI for fraud and error detection by developing a platform called GL.ai in collaboration with H2O.ai, a Silicon Valley-based company specializing in AI system development. 

The primary goal of this tool is to learn and improve with each audit process. PwC has reported a significant investment in Natural Language Processing (NLP) for this purpose. GL.ai has been trained using audit data from Canada, Germany, Sweden, and the UK. 

KPMG 

KPMG has developed its suite of AI tools known as KPMG Ignite. KPMG Ignite encompasses several notable components, including AI tools, AI integrators designed to ensure compatibility with existing IT infrastructure, advisory support for client firms, testing procedures, prototype development, and exploration of emerging AI applications. 

Additionally, KPMG is also using AI to analyze and extract information from leasing or investment contracts. 

Despite our research, it is hard to determine the technology these Big Four organizations use. Successful AI integration in accounting firms requires a strategic approach, including a clear understanding of business objectives, a well-defined implementation plan, and a focus on change management to ensure seamless adoption and maximum value creation. Like many AI applications, the technologies appear to be in the developmental phase within Big Four firms. 

Accounting in an AI World 

The use of AI in accounting firms is multifaceted. From automating routine tasks to enhancing decision-making processes and strengthening security measures, AI is reshaping the industry. 

As technology advances, accounting firms that embrace AI will likely find themselves at the forefront of innovation, providing better services and staying competitive in a rapidly evolving landscape. What do you think of the recent development of AI, and how would you prefer to use it? Let us know your suggestions in the comments section.