Tax professionals aren’t worried about AI taking their jobs, but about taking jobs without AI
For more than a decade, if you were to ask future technologists which industries would be most disrupted by AI, tax, accounting and related professions were at or near the top of the list. Those predictions were partly true.
Administrative Matters
AI is certainly changing the way tax professionals work in significant ways, but none of them involve massive job losses or a reduced need for professional accountants and auditors. On the contrary. According to us
That’s a big face for a segment of the workforce that was once believed to be the flashpoint for AI-related job losses. It’s also an encouraging signal that the AI solutions being developed and deployed for professional tax and audit work are delivering on their promise to help professionals accomplish more in the day and focus on more rewarding, valuable work. However, digging deeper into the data, we also see some additional concerns when it comes to companies that have been quick to adopt AI in their operations.
The true genius of AI
The first, and most obvious, is the clear gap that is emerging between AI and the tax and accounting space when it comes to talent. While those who currently use AI tools designed specifically for tax, accounting and auditing work see a lot of value in these tools, 41% of our survey respondents still don’t have access to them. This means there is an uneven playing field developing between companies, where those who embrace AI are not only able to get work done more efficiently and quickly; they can also hire the best talent.
We estimate that the average cost of replacing a professional technician is over $232,000. Add this to the mix of professionals who are now more likely to transition to a more technologically advanced company, and the downside risk starts to become serious – especially for medium and small companies that thrive on employee stability.
High expectations
Another challenge that hangs over all of this is the growing set of expectations among customers. It’s not just employers who are aware of the tremendous value-add that AI can bring to everyday work; customers also expect more. In fact, according to our research, 78% of enterprise customers say it is very important, or even important, to receive high-quality AI from the companies they work with. However, only 6% said they are getting it today, and 32% said they are re-examining their relationships with companies they feel have gone backwards. Apply to the US CPA market alone, which can handle $38 billion in revenue in active reviews.
In addition, the main trend that is emerging as more companies adopt AI is the growing optimism that the technology can help overcome some of the biggest industry challenges, and companies that adopt it properly experience many benefits. Tax, accounting and auditing professionals – and their clients – are realizing that the right AI tools help them cover ground faster, take on bigger projects, and deliver greater value.
But the implementation of AI strategies still varies greatly from one company to the next. While some have embraced AI wholeheartedly, arming their teams with sophisticated solutions built specifically to help them do their jobs better, others have taken a wait-and-see approach, leaving their individual employees to experiment on their own. This second approach comes with many new risks, the full impact of which we have yet to see. For companies that want to ensure that they leverage the future while minimizing downside risk, it’s time to start thinking seriously about a profitable AI strategy.
