Six ways AI is changing accountancy – and what firms should do next

Artificial intelligence (AI) is rapidly becoming part of everyday life in accountancy firms. What began as experimentation with tools such as ChatGPT has evolved into practical applications that are helping firms improve efficiency, reduce administrative burden and create more capacity for higher-value work.

At the ICAS Practice Conference: Profitability by Design, speakers explored not only how AI is transforming the profession, but also the importance of governance, process design and professional judgement in ensuring it delivers real value. 

The message from the day was clear: AI isn't a strategy in itself. The real opportunity lies in using technology to free up time, improve client services and build more resilient, profitable firms. 

1. AI is boosting productivity across the profession 

One of the most immediate benefits of AI is its ability to improve productivity. 

Many firms are facing increasing workloads, tighter deadlines and growing client expectations. At the same time, accountants often spend significant amounts of time on repetitive administrative tasks that add little value to clients. 

AI can help reduce this burden by automating routine activities, analysing large volumes of data and supporting everyday tasks more efficiently. Rather than replacing professionals, it enables experienced accountants to focus their time on problem-solving, advisory services and client relationships. 

This shift allows firms to use their expertise where it has the greatest impact while reducing time spent on manual processes. 

2. Drafting, reviewing and summarising work is becoming faster 

Communication is a major part of modern accountancy. Emails, client updates, meeting notes, technical briefings and internal guidance all require time and attention. 

AI is increasingly helping professionals complete these tasks more efficiently by generating first drafts, summarising lengthy documents and turning complex information into accessible content. 

For many firms, these are some of the easiest and lowest-risk areas to begin experimenting with AI. Used appropriately, the technology can significantly reduce the time spent creating routine communications while helping maintain consistency across teams. 

As regulatory and technical information continues to grow, AI also has the potential to help professionals quickly identify key points and communicate them more effectively to clients and colleagues. This was demonstrated by Jordan Vickery, Co-founder of Vinyl, where he not only showed how AI tools can accurately transcribe meetings, but also how that transcription can be used to identify client needs that can be turned into additional revenue generating services.  

3. AI works best when it supports well-designed processes 

One of the strongest themes from the conference was that firms should focus on improving processes before introducing automation. 

Technology can accelerate a workflow, but if the underlying process is inefficient or inconsistent, automation can simply make problems happen faster. 

Successful firms are therefore taking time to understand how work moves through the business, where delays occur and which activities create unnecessary administration. Once processes are documented and standardised, AI can be introduced to support specific tasks and improve efficiency. 

Areas such as client onboarding, information gathering, bookkeeping reviews and client communications are often good starting points because they involve structured, repeatable workflows. 

The firms seeing the greatest benefits from AI are those that view it as part of a broader approach to operational improvement rather than as a standalone solution. 

4. Governance is just as important as innovation 

As AI becomes more widely adopted, firms are increasingly recognising the importance of governance. 

Accountants operate in a profession built on trust, accuracy and professional responsibility. This means staff need clear guidance on how AI tools can be used, what information can be entered into systems and how outputs should be reviewed.  

Many organisations are now developing internal policies that set expectations around AI use, data security and quality control. These frameworks are essential to ensure technology is used consistently and responsibly across the business.  

Strong governance also helps firms balance innovation with risk management, allowing them to explore new technologies while maintaining confidence in the quality of their work. 

5. Managing risk remains essential 

While AI can deliver significant efficiencies, it's not always accurate. 

Generative AI tools can occasionally produce incorrect information, misunderstand context or present inaccurate answers with a high degree of confidence. These issues highlight why professional oversight remains critical. 

Firms need appropriate controls to ensure AI-generated content is reviewed before being relied upon or shared with clients. This includes understanding the limitations of the technology, documenting review processes and ensuring accountability remains clear. 

Rather than viewing AI outputs as final answers, firms should treat them as a starting point that requires professional verification. 

The most successful adopters of AI aren't those who trust the technology completely, but those who understand where it adds value and where human intervention is still required. 

6. Human judgement is becoming more valuable 

Perhaps the most important lesson from the conference was that AI is increasing the importance of human expertise rather than diminishing it. 

Technology can analyse data, automate tasks and generate content, but it can't replicate professional judgement, experience or the trusted relationships accountants build with their clients. 

As more routine work becomes automated, the value becomes what firms do with that new capacity. Accountants should shift further towards interpretation, strategic advice and helping clients make informed decisions. 

Clients don't simply want compliance services. They want confidence, reassurance and guidance when facing important business decisions. These are areas where human skills remain essential. 

In many ways, AI is creating an opportunity for accountants to spend less time producing information and more time helping clients understand what that information means. 

What should firms do next? 

For firms considering their next steps, the starting point shouldn't be the latest AI tool. It should be understanding where time is currently being spent and identifying processes that could be improved. 

A practical approach is to select one workflow, map it out and identify areas where repetitive tasks can be simplified or automated. Once the process is working consistently, AI can be introduced to support specific activities. 

At the same time, firms should establish clear governance arrangements, provide staff training and ensure appropriate review procedures are in place. 

The organisations that gain the greatest value from AI will be those that combine technology with strong processes, effective controls and professional expertise. 

Ultimately, the goal isn't simply to automate more work. It's to create capacity to serve clients better, support employees more effectively and build stronger, more profitable firms for the future.