Will AI Replace Accountants? What’s Likely to Happen, What’s Not (and Everything in Between)

“Will AI replace human accountants?”

Since the release of ChatGPT, the accounting world—and the world at large really—has been abuzz the last few years with equal parts excitement and terror about artificial intelligence. 

But the question of whether or not their job will survive is always among the top questions asked.

Some envision a utopia of error-free financial reporting while others see unemployment lines filled with CPAs.

The reality lies somewhere in between. It’s far more nuanced and, frankly, more interesting.

Remember, Excel didn't kill off financial analysts. Instead, it created new roles and became a foundational skillset across the industry. 

With that in mind, ChatGPT won't be stealing your job anytime soon.

But changes? Oh, there will be changes.

Before you continue, this isn't about whether AI will impact accounting. That ship has sailed, docked at another port, and is already unloading its cargo. 

The real question is: how will these technologies reshape the profession, and what can smart accountants, teams, and organizations do to stay ahead of the curve?

Let's cut the hype and look at what's really happening.

The current state of AI in accounting

One of the best indicators of which way the artificial intelligence wind is blowing is to look at accounting firms. Firms often tend to adopt and innovate faster due to competitive pressures and resource availability. 

A Thomson Reuters Institute survey found that the "Big 4" accounting firms (Deloitte, PwC, Ernst & Young, and KPMG) are leading the AI adoption charge, influencing countless clients in the process. This influence has borne fruit as by 2024, 58% of all accounting firms have implemented some form of AI according to Deloitte survey data.

What's driving this rapid adoption? Simply put: time, money, and accuracy. A study by Forrester Research estimated that AI could help reduce operational costs by up to 40% by 2025, with fewer manual data tasks leading to fewer mistakes and less rework.

In summary: Artificial intelligence has absolutely crashed the accounting party. 

The question is: how is it reshaping how this discipline functions day-to-day?

A remarkably brief history of AI in accounting

For starters, it helps to understand that AI did not burst onto the scene with ChatGPT. 

Depending on who you ask, AI has been impacting the accounting industry and accounting software since the late 1980s with rudimentary automations and algorithms. Even what many think of as “true” AI and machine learning have been around for 15ish years.

While just about every tool on the market mentions artificial intelligence somewhere in their product description, the tools themselves range from specialized accounting platforms to general-purpose AI being adapted for financial work. 

Some firms are using ChatGPT and similar tools directly for specific tasks, while others rely on AI technology embedded within their existing software.

More basic AI point solutions are capable of making a few different aspects of accounting work nearly automatic, including data entry, flagging anomalies, and drafting financial reports. Advanced AI accounting tools—such as the Blue Onion Subledger—are capable of handling more complicated aspects of accounting including reconciliation and tax compliance.

But does this mean accountants should update their résumés? Not quite…unless those updates include adding AI-related skills to it.

What tasks AI will replace (if it hasn’t already)

We promised up top to be rid of the hype but let’s be honest. Some accounting tasks are perfect candidates for AI takeover and they're probably the ones you wouldn't mind handing off anyway.

Data entry: Done. 

A machine can process invoices, receipts, and financial statements faster than any human. The financial reporting process has never been faster and some companies are even able to close the books daily instead of monthly. Moreover, AI can extract data from documents and categorize them accurately, managing hugely complex financial data without getting bored, tired, or distracted by thoughts of the Roman empire.

Basic bookkeeping: Going, going, nearly gone. 

AI excels at repetitive tasks like transaction categorization, processing invoices, and basic data management, completing these jobs quickly and accurately with fewer errors than humans.

The pattern is clear: If it's repetitive, rule-based, involves large volumes of data, or follows clearly defined processes, AI will likely take over that task. And honestly? That might not be such a bad thing. 

So what’s left?

What tasks will remain human-centered

The AI doomsday predictions fall apart here. While AI in accounting can handle the routine stuff, there's a whole universe of accounting work that still requires a human touch.

The World Economic Forum's 2023 Future of Jobs Report identified jobs requiring "human skills such as judgment, creativity…and emotional intelligence" as those least likely to be lost to AI. 

In other words, skills accountants must use every single day.

Strategic financial advisory requires—if not demands—understanding the full business context, industry trends, competitive pressures, and organizational psychology. AI can analyze past patterns but struggles to integrate all these factors into forward-looking advice.

Consider complex regulations and tax planning. Sure, AI can flag compliance issues when comparing data to the law. What it can’t do is interpret how to remain compliant with gray areas in tax law or make ethical determinations in ambiguous scenarios.

AI just lacks that hard-to-define “human” element in decision-making that's crucial for high-stakes financial choices. 

AI might have checked all the technical compliance boxes while missing the larger ethical red flags that a seasoned accountant would spot immediately.

Furthermore, relationships remain firmly in the human domain. The trust built between accountants and clients (both internal and external) over years can't be replicated by an algorithm. People want a human to understand their business aspirations, goals, and unique challenges. 

Moreover, a seasoned corporate accountant understands not just the numbers, but the business context behind them - like why the team needs certain reporting structures, how Operations prefers to track costs, or how certain initiatives may drive D spending fluctuations.

Successful accountants won't be those fighting against AI but those who embrace it for routine tasks while doubling down on these uniquely human capabilities. These professionals will ascend to true "trusted advisor" status, providing strategic guidance that no machine can match.

A day in the life of an AI-empowered accountant

What we're seeing in real time is an evolution.

Picture this: an accountant in 2025 doesn’t spend their morning manually inputting data because it’s the end of the month and it’s time for financial reporting. Instead, they’re reviewing AI-generated financial insights from the last few days and seeing how that impacts forecasts. 

By lunchtime, they've met with marketing about Q4 holiday budget allocation and fulfillment managers about same-day shipping costs. Using predictive models, they show how different inventory strategies impact cash flow. 

The afternoon focuses on marketplace expansion analysis and cost tracking for the private label part of their business: complex decisions that require human insight and cross-departmental collaboration.

This reality is possible right now.

As mundane tasks shift to machines, accountants are transforming from number-crunchers to strategic business partners. This shift demands a new skill set and mindset, one that blends “traditional” accounting expertise with technological literacy and advanced advisory capabilities.

Accountants might be called upon to be both skilled communicators and technical experts who understand the tools that complete accounting tasks. Think part-financial wizard, part-data scientist, part-business consultant. 

The education pathway for accountants is already changing to reflect this new reality. Accounting programs in university are incorporating more data analytics, technology training, and strategic business courses. Accounting job descriptions are asking for it as a skill competency. Even professional development increasingly focuses on soft skills like communication rather than technical accounting alone.

Why increasing use of AI in accounting is a good change

This evolution isn't unique to accounting. It mirrors the transformation we've seen in other professions when automation arrives. 

Radiologists don't just read X-rays anymore – they've become diagnostic specialists who consult on complex medical cases. Travel agents evolved from ticket-bookers to designers of once-in-a-lifetime experiences. 

All things being equal, automation elevates professionals into higher-value roles. The accounting industry is no different.

What's particularly exciting is how this shift could address one of accounting's biggest challenges: burnout and staff shortages. 

By eliminating the most tedious parts of accounting jobs, AI could help attract and retain talent that might otherwise flee to other fields. AI can help the accounting profession tackle pressing challenges related to production capacity, staffing shortages, and accountant burnout.

For firms willing to embrace this change, the future looks bright. In fact, as things change, there may be less of a distinction between finance and accounting and instead merge under a single umbrella.

For those clinging to the old ways? Not so much. Human accountants won’t be replaced by AI, but they will be replaced by accountants leveraging AI.

What accountants should do to prepare for this new reality

For accountants and firms, this transformation offers a choice. You can resist the inevitable and cling to outdated ways of working, or you can embrace AI as a powerful ally that frees you from drudgery and elevates your capacity to deliver value.

So what should you do? Simple: start by understanding the technology. You don't need to become a programmer, but you should know what AI can and can't do in your specific role. Many firms are now requiring their team members to use AI tools at least once a week to build familiarity and discover practical applications.

Next, double down on skills that AI can't replicate. What makes you uniquely human? Your ability to build trust, exercise judgment in gray areas, communicate complex ideas, and provide emotional support when companies face challenging financial decisions. These are your new competitive advantages.

Develop a hybrid skill set combining tech literacy with human capabilities. Learn to speak the language of data analytics while honing your consultative approach. The most successful accountants will sit at the intersection of financial expertise, technological proficiency, and strategic thinking.

Finally, become an educator and guide. Many clients (both internal and external) are intimidated by the pace of technological change. Your role increasingly includes helping them understand and navigate the implications of automation on their businesses.

The accountants who view AI as an opportunity rather than a threat will be the ones writing the next chapter of the profession's history. And that chapter could be the most exciting one yet.

So will AI replace accountants?

Let's circle back to our opening question: Will AI replace accountants?

The short answer is no – but with a crucial caveat. AI won't replace human accountants, but it will radically transform what it means to be an accountant.

The accounting profession has weathered technological revolutions before. From paper ledgers to spreadsheets to cloud computing, each wave of innovation changed how accountants work without eliminating the need for their expertise. 

AI represents the next evolution in this journey, not the end of it.

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