AI in accounting: A guide for forward-thinking client advisory firms

The role of artificial intelligence in accounting and client advisory firms is changing how firms operate—and it's happening faster than you might think. According to a report from Mordor Intelligence, the AI in accounting market size is valued at an estimated $6.68 billion as of 2025, and is expected to reach $37.6 billion by 2030—a forecasted compound annual growth rate of 41% between 2025-2030.

AI’s ability to automate routine tasks and unlock strategic opportunities is instrumental in helping your firm stay ahead of the competition, scale your services efficiently, and provide more personalized client experiences that boost retention.

While some are proceeding with caution, plenty of forward-thinking firms, both big and small, are already finding ways to put AI to good use, proving that AI truly has the power to optimize how CAS firms operate.

How firms are currently leveraging AI for client advisory services

Growth rates suggest that the relationship between accounting and AI is evolving rapidly. According to the 2024 Intuit QuickBooks Accountant Technology Survey, 98% of accountants and bookkeepers surveyed said they’ve used AI to help clients and their businesses.

What's particularly interesting is how firms are approaching AI adoption. Many firms start with familiar open-source tools, such as ChatGPT, instead of opting for industry-specific solutions—but there’s also a rapid move toward more bespoke AI strategies. For example, EY invested $1.4 billion in AI initiatives, including their own AI platform and intelligent payroll solutions.

Big Four firms aren’t the only ones making strides. According to a Moore Global study, mid-size and smaller accounting and finance businesses spent $1.6 million on AI in 2023, nearly 4x what legal and professional services invested. 

Here are just a few examples of how several firms across the US optimized client services by investing more heavily in AI:

• California-based firm Armanino has an AI-powered 13-Week cash flow model that rapidly processes more than 25,000 transactions in minutes, giving clients detailed visibility into their cash positions and enabling them to make data-driven decisions about investments and expenditures.
• Maryland-based GWCPA integrates multiple AI tools across their operations—from using MindBridge AI for enhanced audit risk assessment to Ask Blue J for more accurate tax research—allowing their team to provide more thorough and efficient client services. In December 2024, the firm also launched a custom GPT, The Generations Advisor. This tool allows clients to explore sensitive questions and get preliminary insights at their own pace before engaging with a GWCPA advisor.
• In November 2024, Illinois-based firm RSM partnered with Additive to leverage its generative AI platform for faster processing of complex tax documents such as K-1s, as well as partnership compliance packages. This enabled their team to deliver faster, more accurate tax services, while reducing manual workload and streamlining collaboration between tax professionals.

Key applications of AI in client advisory services

These case studies of how firms are leveraging the role of AI in accounting and finance show that the key to success is looking beyond the basic applications of AI in accounting. By using this technology to automate invoice processing or reduce human error in accounting processes, firms can focus on richer advisory services, including the following:

Forecasting and scenario planning

Accounting firms are revolutionizing cash flow management by deploying AI tools that combine multiple technologies to deliver more accurate and timely forecasts and insights. Where traditional cash flow analysis might take days and risk human error, AI-powered systems similar to Armanino’s cash flow model can process tens of thousands of transactions in minutes. This capability helps clients identify emerging cash flow challenges, prioritize collections and payments, and make more confident decisions about investments and expenditures.

Beyond the raw speed advantage, these AI-powered tools and services offer other benefits to clients:

• More granular understanding of their financial position.
• Earlier detection of potential cash flow challenges.
• Better alignment between stakeholders through accurate projections.
• Proactive management of operational expenses and overhead.

Predictive analytics can also aid in scenario planning, allowing firms to help their clients explore the potential outcomes of various strategic decisions. For example, Clockwork, an AI-enabled FP&A (financial planning and analysis) software, shared one case study where a firm, GeneralCents Accounting, used the tool to illustrate to a client what the financial impact of a small pricing change and team restructure might be based on financial performance and projections, ultimately helping boost that client’s bottom line.

Tax planning

The RSM case study with Additive is one example of how a firm might benefit from integrating AI into its tax advisory services. In that case, AI helped the firm provide tax solutions with reduced manual errors, while accelerating data processing and analysis.

A 2024 Deloitte report, “Generative AI: What should tax directors be thinking about?,” identified a handful of other applications where AI proves effective in optimizing tax planning, including the following: 

• Automating statutory tax compliance processes while enabling more targeted risk management, and identifying opportunities for improvement across different territories.
• Streamlining due diligence during M&A by analyzing larger datasets more efficiently, leading to more accurate target valuations and better risk assessment.
• Providing real-time analysis of evolving tax regimes across multiple jurisdictions, reducing the time and cost associated with manual assessment of complex international tax structures.
• Enhancing risk review processes while helping identify potential compliance issues early.

Fraud detection and risk management

Fraud detection and prevention is another important area where AI excels, with more than 50% of accountants saying it is one of the main areas they’re leveraging in their client services. 

An article in Finance & Accounting Research Journal found that, by analyzing wide amounts of financial data and documents in real-time, AI helps firms uncover suspicious patterns and complex fraud schemes that traditional methods might miss. What makes AI particularly powerful is its ability to learn and adapt; when it identifies false positives or confirms actual fraud, it adjusts its analysis to become more accurate over time.

Beyond pattern recognition, AI helps assess system vulnerabilities, detect potential threats, and automate continuous monitoring processes that would be impractical to perform manually.

This capability also extends to risk management. Advanced algorithms analyze historical data and external factors to predict potential risks, enabling firms to implement preventive measures and ensure long-term financial stability for clients.

Benefits of AI for accountants and advisory firms

AI offers transformative benefits for CAS firms, revolutionizing traditional workflows and enabling firms to operate more efficiently. Here are some of the main advantages for firms:

• Boost revenue: By automating routine tasks and data processing, accounting firms can invest more time and resources into expanding their client advisory services, providing everything from financial planning and fractional CFO services to tax advisory, M&A guidance, succession planning, and retirement planning. Focusing on these various service offerings and business streams can increase a firm’s monthly revenue by up to 50%. The value of AI is that it also enables this investment in new services without increasing costs or headcount. For example, Australia-based Next Dimension Accounting saw a 200% increase over two years by adopting AI tools, allowing them to deliver faster, more accurate services without the need to hire additional staff.
• Enhanced deliverables: AI transforms historical financial data into actionable insights through predictive analytics, with tools that analyze past performance to forecast trends, identify potential risks, and recommend strategic actions. AI also serves as a powerful fact-checker for financial data, processing millions of data points with consistent accuracy. According to the Journal of Risk and Financial Management, AI has proven effective in everything from flagging misaligned tax rates and incorrect accounting periods, to identifying hidden transactions and potential data manipulation.
• Higher client retention: By allowing you to expand your services, get more done in a shorter amount of time, and evolve your firm’s strategic capabilities, AI has the power to keep your clients happy and engaged—with 35% of firms crediting AI with stronger client retention. It can help you stay ahead of their needs by automating regular check-ins, spotting potential issues before they become problems, and delivering insights faster. Plus, all the time you save on routine tasks means you can focus on what matters: building a strong, personal relationship with your client.

• Competitive advantage: As AI-powered tools become more common across the accounting industry, early adoption and customization will be key to getting ahead of the competition. For example, when New York-based CLA acquired UK-based tech firm Engine B—a strategic step toward building their own AI technology—CEO Jen Leary noted that this move made it clear that CLA is “becoming a force for positively disrupting the [accounting] profession” and "offering more value to clients.” In addition to helping small- and mid-sized firms remain competitive against one another, a 2024 report from the AICPA also noted that GenerativeAI (GenAI) will be a game-changer for small accounting firms looking to compete with bigger players. According to the report, AI will allow smaller firms to offer services on par with larger firms at a lower cost and with greater efficiency.

QuickBooks integrations with AI-enabled tools

Built-in QuickBooks integrations make it as frictionless as possible for accounting firms to adopt AI-powered tools in their client services. Here are a few favorites:

• Booke AI leverages AI to fix uncategorized transactions and coding errors instantly, which heavily reduces manual processing time.
• XBert runs more than 60 AI-driven checks on books daily to flag errors, potential issues, and risks.
• Octopus AI reviews a client’s books to provide clear financial analytics, personalized strategy, and advice for smarter scaling.
• Clockwork transforms transaction data into AI-powered financial models and cash flow forecasts, enabling businesses to run unlimited "what-if" scenarios with CFO-level insights.

Challenges and limitations of using AI in accounting

While AI offers powerful benefits for accounting firms, implementing this technology comes with several key challenges:

• Data security: Protecting sensitive financial information requires robust security measures, including encryption and access controls, while also maintaining compliance with regulations such as General Data Protection Regulation and the California Consumer Privacy Act.
• Accuracy concerns: AI systems can occasionally produce incorrect information or "hallucinate," which means it’s important to review outputs carefully to avoid financial misstatements or inconsistencies.
• Implementation hurdles: Successfully integrating AI requires careful planning across your firm. It calls for team training, systems integration, resource allocation, and clear client communication, all of which can temporarily disrupt existing workflows. To make sure you’re implementing AI responsibly, it’s also important to establish an AI policy for your firm.
• Transparency issues: AI's "black box" nature can make it difficult to understand how decisions are reached, creating challenges for audit trails and compliance requirements.
• Business continuity risks: Relying too heavily on AI puts your firm in a bind, should the technology fail for one reason or another. Having a backup plan in place, where you can revert to manual processes as needed, is important to avoid disruptions in your workflow.
• Professional judgment: While AI excels at automation, it can’t fully replace human experience and expertise, especially when it comes to understanding complex financial nuances and making strategic decisions.

Future trends for AI in the accounting industry

There’s no question that AI will continue redefining the accounting landscape over the next several years. GenAI, in particular, will continue evolving as a huge asset in the space. According to Deloitte, one of the big opportunities for GenAI will be allowing firms to offer more personalized, efficient, and valuable service to clients.

And as AI technology evolves, accounting professionals are also transitioning from data processors to strategic advisors. Far from replacing accountants, as was once the fear, AI is freeing up time so that tax and accounting professionals can skip spending hours on manual entries and reconciliations to focus on interpreting AI-generated insights and providing high-value guidance to clients. This shift demands a new skill set: Accountants must combine their financial expertise with an understanding of AI capabilities and limitations to get the most out of emerging technologies.

AI for client advisory services: A powerful game-changer

AI isn’t just another tool in your firm’s arsenal; it’s a catalyst for transformation. By taking over routine tasks and providing deeper insights through predictive analytics, AI has the power to entirely change how you operate and add value for your clients.

The human element remains crucial. While AI excels at processing data and identifying patterns, accounting professionals will continue to provide essential judgment, relationship management, and strategic guidance that AI can’t replicate. The most successful advisory firms will be those who find the sweet spot between embracing AI’s capabilities and using those tools to make the most of their in-house experts.