AI in Accounting: Pros and Cons of Using ChatGPT in Financial Workflows
AI in accounting is reshaping how firms streamline audits, reporting, and client tasks—boosting speed and reducing workload. Tools like ChatGPT help automate emails, structure financial data, and overcome writer’s block. But accuracy risks and lack of accounting nuance mean AI should support, not replace, professionals. With platforms like Perplexity and Search GPT pushing real-time insights, now’s the time to adopt AI strategically.
AI in accounting is reshaping how financial professionals work, streamlining tasks like report writing, audit planning, and client communication. One of the most prominent tools driving this change is ChatGPT, which is used not as a replacement but as a productivity partner.
From automating routine emails to structuring financial data, ChatGPT supports professionals by speeding up processes and reducing mental load. However, its use comes with risks like hallucinations, data privacy concerns, and a lack of domain-specific expertise.
In this blog, we explore the pros and cons of using ChatGPT in accounting workflows, covering how it enhances productivity while examining its limitations. Whether you're looking to understand how to use AI in accounting, exploring the benefits of AI in accounting and finance, or simply trying to stay ahead in a tech-driven profession, this guide is your starting point.
AI is changing the way accounting firms handle digital marketing, fast and for good.
Instead of spending hours creating blogs, guides, or videos, firms can now produce high-quality content quickly using AI, without losing originality.
In this video, Debra Andrews, Founder and President of Marketri LLC, explains that:
Early adopters made a mistake:
To fix that:
According to Mordor Intelligence, the AI in the Accounting Market is projected to grow from USD 6.68 billion in 2025 to USD 37.60 billion by 2030, at a staggering CAGR of 41.27%.
Tools like Karbon AI auto-send updates as jobs progress, enhancing transparency and efficiency without manual effort.
A study found ChatGPT cuts writing time by ~40% and improves output quality by 18%. Quality results depend on clear prompts. Better input = better output. Paste your firm’s style guide for consistent tone in AI-generated emails and proposals.
Stuck on complex tax topics or client newsletters? ChatGPT drafts outlines or emails to jumpstart content.
Copy transaction text from PDFs and prompt ChatGPT to format for Excel. Use ChatPDF to extract data, but only with anonymized information to stay secure.
ChatGPT can generate convincing errors. Always verify outputs before use. However, according to multiple AI research studies, OpenAI GPT-4.5 has the lowest hallucination rate (i.e., the highest accuracy rate) of 15%.
It understands general finance but isn’t a CPA. Content may require substantial editing to accommodate accounting nuances. ChatGPT isn't tailored for accounting. According to a Thomson Reuters study, only ~15% of tax and accounting firms currently use or plan to use it.
Tools upgrade constantly. Firms need dedicated time to stay up-to-date with the latest updates and best practices.
Even GPT‑4 has used decades-old tax tables in demos. Always confirm regulatory or compliance details.
As regulatory environments become increasingly complex, the ability to leverage AI for compliance and audit is becoming essential. Whether you're an external auditor, internal compliance officer, or financial controller, this course will help you stay competitive and compliant in the AI-driven future.
By the end of this CPE course, learners will be able to:
Artificial Intelligence is reshaping the auditing and compliance landscape. This course offers a comprehensive look at how AI technologies are revolutionizing:
With AI’s ability to analyze vast volumes of structured and unstructured data, auditors can now uncover risks that traditional audit methods might miss. The course emphasizes real-world applications, combining theoretical foundations with practical case studies.
| Key Area | Description |
|---|---|
| AI for Risk Identification | How AI scans data to flag early risk indicators across large datasets. |
| Materiality Determinations with AI | Automating judgment-based thresholds for greater accuracy and consistency. |
| Advanced Data Analysis Algorithms | Applying machine learning to transaction patterns for deeper insights. |
| Fraud Detection & Prevention | Using anomaly detection to highlight suspicious transactions. |
| Compliance Monitoring Technologies | Leveraging AI for real-time tracking of compliance activities. |
| Regulatory Reporting Automation | Streamlining regulatory documentation and submission workflows. |
| Case Studies | Real-world success stories showcasing AI integration in audit practices. |
In this insightful episode of the Accountant Showcase Series, Chris Rivera sits down with Rohan Prajapati, a dynamic CPA and founder of Rova Partners LLC, to explore how accounting firms can harness the power of AI and global talent transformation to future-proof their practices.
Rohan emphasizes that AI should not be seen as a one-size-fits-all solution. Instead of blanket automation, the most impactful AI applications are specific and targeted, enhancing workflows rather than replacing human judgment. At Rova, AI is leveraged to tighten processes, like a proprietary accrual engine that estimates entries before actual invoices arrive, saving time and improving accuracy.
To implement AI effectively, Rova started by mapping all processes across engagements. The team then identified repeatable, low-complexity tasks that could be automated. This structured approach allowed them to build AI workflows backed by strong internal systems, not just flashy tools.
While many firms rely on third-party software, Rova takes a different approach. By building custom AI tools tailored to their standard operating procedures (SOPs), they drive deeper efficiencies. From cash flow forecasting using Shopify data to AI-powered supply chain optimization, Rova’s tools are grounded in real-world use, not hype.
Rohan highlights a key shift in talent strategy, moving beyond traditional outsourcing to building Global Capability Centers (GCCs). These centers act as strategic, value-creating arms of the firm, not just back-office hubs. Employees abroad who feel integrated into the firm’s culture and growth vision tend to contribute more meaningfully over the long term.
"When people abroad feel part of your organization and culture, they create more value. It’s not just about labor, it’s about building sticky, invested talent." - Rohan Prajapati
Rohan sees the future of professional services in firm-specific AI development. While off-the-shelf tools will continue to play a role, the biggest gains will come from custom innovations built internally, solutions that align with the firm's unique processes, priorities, and client needs.
The future of AI in accounting and finance lies not in replacement, but in intelligent augmentation. Firms that integrate AI thoughtfully, starting with low-complexity tasks and combining it with internal expertise, stand to gain the most. ChatGPT is a powerful tool, but like any innovation, its true value emerges when used wisely and strategically.
For firms looking to scale, increase compliance accuracy, and boost efficiency, now is the time to start exploring how to use AI in accounting, before the competitive gap widens.
MYCPE ONE is the trusted partner for over 3,000 CPA and accounting firms worldwide, empowering them to scale, innovate, and achieve operational excellence.
With a decade of experience, a unified platform, and 3000+ team members across 40+ offices, MYCPE ONE delivers comprehensive offshoring, CPE and L&D, websites & digital marketing, M&A advisory, and daily news insights - all designed to help firms attract top talent, maintain compliance, and drive sustainable growth.
Backed by SOC 2, ISO 27001, and GDPR certifications, MYCPE ONE ensures the highest standards of data security and client support for every firm.
The benefits of AI in accounting include faster data processing, improved audit accuracy, automated routine tasks, better risk management, and enhanced fraud detection. AI tools like ChatGPT can also help streamline client communication and create consistent, professional content quickly.
To use AI in accounting effectively, start by identifying repetitive, low-risk tasks, like email drafting, transaction formatting, or risk assessments. Use tools like ChatGPT to support these functions. Always verify AI-generated outputs and ensure data privacy by avoiding sensitive input.
The risks include generating inaccurate or misleading content (hallucinations), data privacy concerns, outdated regulatory information, and the tool’s lack of accounting-specific expertise. Firms should supervise outputs closely and not rely on ChatGPT for compliance-critical decisions.
No, ChatGPT is not replacing accountants. Instead, it augments their work by increasing efficiency and supporting communication. Experts advise using AI as a tool to enhance, not replace, professional judgment, especially in areas like auditing, compliance, and financial advisory.
Shawn Parikh is the CEO and Co-Founder of MYCPE ONE. A Chartered Accountant by qualification, he has over 15 years of experience of being a problem solver for small to mid-size firms and over time he has given consultation to thousands of CPAs, accountants and tax pros. Shawn has always been a big believer and advocate of social enterprises and small accounting firms & businesses. He consults and speaks on several topics ranging from Building Remote Team - Remote Working, Offshore Staffing, strategic planning, Scalability of Accounting Practice, cloud accounting, practice management, LinkedIn marketing, etc.
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