Additionally, firms are also utilizing intelligent Optical Character Recognition (OCR) to read and import client documents, minimizing manual data entry efforts. Together, these tools not only improve efficiency but also free firm resources to focus on more strategic, high-value activities by automating routine tasks.
Next steps for the firm:
- Better to buy than build: In the initial phases of GenAI implementation, many firms considered building AI models. However, with the rapid rate at which technology is advancing, even firms with strong custom solutions recommend leveraging AI experts for implementation, saying, “If you haven’t done it yet, I wouldn’t recommend it—it’s not worth the time, cost and effort.”
- Prompt engineering training: Working with AI effectively is an acquired skill—an art that requires understanding how to elicit the best responses. Firms should prioritize comprehensive prompt engineering training for associates to ensure they can fully leverage AI assistants and consistently achieve accurate, valuable results.
Preparing your augmented workforce
AI can be a strategic partner, offering leadership and staff intelligent insights to guide decision making. Participants highlighted AI’s value in guiding daily priorities based on their clients’ needs and firm goals, as well as predicting staffing needs and optimizing resource allocation, reducing the time spent on manual planning. With predictive intelligence, AI enables firm leadership to make more informed decisions by helping anticipate client trends, potential risks, and future opportunities.
AI-powered systems can also assist new hires in acclimating quickly, answering common questions, and helping them get up to speed more efficiently. Participants envisioned AI assistants that not only provide answers to accounting and regulatory questions but also to internal staff inquiries based on the collective firm knowledge.
AI can provide firm leadership with comprehensive, data-driven insights to guide strategic and operational decision-making. However, maintaining human oversight and judgment in the decision-making process is crucial. One firm likened AI to a "really smart high schooler," suggesting that while AI can assist and enhance work, it cannot fully replace human judgment and expertise.
This shift has also exposed a gap firms are beginning to identify among younger associates and seniors. Automations and outsourcing mean that associates are not performing basic tasks like data entry, preparing financial statements, reconciliations, or assisting with audits and tax preparation. As a result, they may not know how to read, analyze, or understand these documents. Firms need to ensure that younger associates receive the right training to understand AI tools' output and build their professional expertise and judgment to become advisors.
Next steps for the firm:
- Structured training programs: Consider structured training programs for associates that focus on effective AI tools usage, critical thinking, problem-solving, and decision-making. Use real-world scenarios and simulations to help associates practice data analysis and build confidence in decision-making.
Delivering value to the client
To maintain a competitive edge, firms are evaluating ways to leverage AI to enhance the client experience. Often these initiatives streamline processes for associates. One key area where AI is being used and has potential for expansion is in monitoring engagement status and keeping clients informed of progress. By integrating AI into their systems, firms can efficiently map internal processes and provide real-time status updates on engagements.
AI's ability to analyze client behaviors and preferences provides firms deeper insights, allowing leadership to tailor services and anticipate client needs. This insight extends to identifying potential cross-selling opportunities or predicting client attrition risks, thereby enabling firms to make informed decisions that enhance service delivery. AI also aids in generating management letters and emails, giving associates more time to add a personal touch to client interactions—blending the efficiencies of technology with the nuances of human connection to truly elevate the client experience.
Next steps for firm:
Enhance client touchpoints: Integrate AI to track engagement progress and offer clients transparent, real-time updates.
Data access and data security
A key discussion focused on how to capture and leverage firm-wide knowledge effectively. Accessing and integrating data from varied systems to enable AI-driven decision-making was identified as a necessary next step—and major hurdle—for firms aiming to fully utilize AI capabilities.
The future of AI lies in achieving interoperability and data sharing across applications. A core issue is data accessibility and security, ensuring that data is in a suitable state for AI deployment. Participants highlighted the need for a centralized system where users can seamlessly query data; however, disconnected data currently limits this capability. They recognized the potential of leveraging AI to create a comprehensive knowledge base of firm interactions to inform decision-making. Currently, however, much of this valuable information feels “lost” because internal AI bots or Copilot-style assistants cannot access the rich sources of client and firm data across various systems.
Balancing innovation with data security was a critical theme in our discussions. Participants stressed the importance of clear policies that prevent sensitive information—such as Social Security numbers and client details—from being uploaded into AI systems. They noted that while regulatory standards set essential guidelines, firms need to go further to maintain client trust and uphold the integrity of managed data.
Next steps for the firm:
- Invest in integrated solutions: Prioritize integrated systems to optimize AI’s potential, ensuring that all data can be easily accessed and used effectively.
- Update data privacy policies: Evaluate your firm’s policies about handling sensitive information and the use of AI. Establish clear policies that restrict uploading sensitive information about the firm or clients into unsecured AI systems.
Looking to the future
Over the next three years, participants anticipate a substantial transformation in the accounting industry, with AI driving significant changes. Firms are eager to move beyond mere operational efficiency and venture into innovative applications that redefine traditional accounting roles. While some attendees were optimistic about expanding AI applications, one participant highlighted the potential:
