How AI Is Transforming Accounting and Financial Planning

It’s not just the coffee machine that’s getting smarter at accounting firms. AI has officially clocked in, and it’s not leaving early. With generative AI (GenAI) rolling out faster than a tax season backlog, financial planners, accountants, and auditors are looking beyond spreadsheets and asking the big questions: Can AI make my job easier? More accurate? Maybe even fun? Let’s break it down—minus the jargon overload.

Smart Tech, Boring Tasks

Gone are the days when entry-level staff were buried in receipts and reconciliation. AI has taken over the grind. From automating bookkeeping to prepping tax returns with minimal human touch, software today isn’t just smart, it’s practically clairvoyant. A Thomson Reuters report showed only 8% of tax firms currently use GenAI tech, but a curious 30% are “considering it,” while 49% aren’t even in the race—yet. What’s holding them back? Trust, data security, and the classic “We’ve always done it this way” mentality.

But the Big 4? They’re not waiting around. Deloitte has its cognitive document reviewer, EY’s AI hunts for fraud in unstructured data, PwC’s internal GenAI platform boosts dev productivity by up to 50%, and KPMG is not just talking; they’ve dropped a Tariff Modeler that Fortune 500 companies are already using. McKinsey & Company is also putting generative AI to work with Lilli, its in-house AI platform now used by over 70% of its global staff to answer more than 500,000 prompts a month, turning knowledge management into a productivity powerhouse.

Humans Still Matter

AI doesn’t have a license to give financial advice (yet), but it’s certainly reading the fine print. Whether it’s crunching market trends for planners or highlighting inconsistencies in audits, AI has become the ultimate second pair of eyes.

Global research from the Financial Planning Standards Board (FPSB) found that:

• 78% of financial planners think AI will help them serve clients better.
• 60% believe it’ll boost the quality of financial advice.
• And over half use AI daily or weekly, mostly for data collection, risk profiling, and communications.

But don’t throw away the human touch just yet. As one expert said, “AI can predict risk, but it can’t hold a client’s hand when markets go sideways.” That’s your job.

Boardrooms Are Betting Big

In early 2024, KPMG surveyed 1,800 execs across 10 countries. Their hot take? AI only claims 10% of IT budgets today, but nearly half expect that to jump by 25% in 2025. Financial reporting and audit departments are especially bullish.

Some numbers to chew on:

• 99% of companies plan to be using AI in financial reporting within 3 years.
• 73% of boards want auditors using AI for anomaly and risk detection.
• 51% of Aussie companies are already spending 11–20% of their IT budgets on AI.

And yes, Aussie firms are eager but lagging in governance. Only 48% have formal AI policies in place, compared to 61% globally. It's like giving your intern the keys to the company car, without the manual.

Small Firms, Big Moves

Don’t count out the little guys. Smaller accounting firms may not have the budget to build custom tools, but they’re getting scrappy with open-source AI (read: ChatGPT). In fact, 27% of firms using GenAI rely on open-source platforms instead of fancy, industry-specific ones.

The top 5 GenAI use cases for tax firms right now?

• Bookkeeping automation
• Tax research
• Return prep
• Tax advisory
• Document review

Even firms that said “AI who?” six months ago are now experimenting with predictive insights and automated compliance tracking. Why? Because AI doesn’t call in sick during audit season.

What Professionals Need to Learn Now

So, what does all this mean for the everyday CPA, financial planner, or audit lead? Here’s what should be top-of-mind:

• Learn to Speak AI: You don’t need to code, but you do need to understand what AI can and can’t do. Focus on mastering tools relevant to your work, whether it’s predictive analytics, AI-enhanced audit platforms, or smart tax software.
• Level Up on Ethics and Data Privacy: With great power comes great compliance. Understanding how to use AI ethically and within data protection regulations isn’t optional—it’s essential.
• Sharpen Your Judgment: AI can spit out numbers, but only you can decide what they mean. Cultivate critical thinking, emotional intelligence, and the ability to interpret AI-driven outputs with a skeptical eye.
• Commit to Continuous Learning: AI evolves faster than a tax code rewrite. Whether it’s earning micro-credentials, attending webinars, or joining AI forums, staying in the loop is your best bet to stay employable and trusted.
• Keep It Human: At the end of the day, clients value connection, empathy, and sound judgment. AI might assist, but you still lead the dance.

Final Thought

AI might be flashy, fast, and frighteningly efficient, but it can’t replace seasoned judgment or good ol’ gut instincts. It won’t know when a client is nervous, lying, or confused. And it definitely won’t remember your client's kid's name. But pair AI with your professional know-how? That’s when the magic happens. So, if you’re still sitting on the sidelines waiting for “the right time” to explore AI, consider this your sign. AI is no longer a tech trend—it’s table stakes. And in the words of every CPA during tax season: The clock’s ticking. Subscribe to MYCPE ONE Insights and stay ahead of global trends reshaping the financial world, before your competitors do.