TLDR: The integration of Artificial Intelligence within accounting firms has seen a significant increase over the past year, with a notable shift towards practical, low-risk applications. While enthusiasm for AI is growing, particularly among smaller and larger firms, a considerable number still lag in training and policy development, highlighting a ‘mindset issue’ rather than a budget constraint.
The accounting industry is experiencing a rapid acceleration in Artificial Intelligence adoption, with firms increasingly leveraging AI tools to enhance efficiency and expand service offerings. This surge is not uniform, however, revealing a clear divide between firms willing to experiment with AI and those hesitant to embrace the technology.
According to the Karbon AI 2025 report, a significant shift in AI adoption over the past year has been the explosion of AI-powered meeting transcription tools. The report indicates a 12% year-over-year increase in firms utilizing AI for meeting summaries, action items, and client follow-ups. These applications are considered high-efficiency and low-risk, serving as an accessible entry point for firms exploring AI without disrupting core operations .
The report highlights that the primary barrier to AI adoption is often not financial, but rather a ‘mindset issue.’ While most firms already possess AI capabilities embedded in their existing accounting software, only 37% invest in AI training for their employees. This suggests that many firms with access to AI are not utilizing its full potential .
Enthusiasm for AI varies across firm sizes. Small firms (1-3 employees) have shown a 26% year-over-year increase in AI enthusiasm, and large firms (201+ employees) report a 33% increase. Conversely, mid-sized firms (51-200 employees) are exhibiting a rising level of skepticism, with a 6% increase from the previous year .
Despite the growing interest, concerns about AI’s impact on data security persist, with 70% of accountants expressing apprehension. However, AI-positive firms are actively managing these risks while still moving forward with implementation . The cost of hesitation is substantial; firms that invest in AI training reportedly save an average of 66 minutes per employee per day, translating to 52 hours of additional productivity per employee annually. This increased capacity allows AI-positive firms to expand into advisory and consulting services, differentiating themselves from traditional compliance-focused competitors .
Further insights from the Thomson Reuters Institute’s 2025 report on Generative AI in Professional Services indicate a growing positive sentiment among tax professionals. More than half (55%) express excitement and hopefulness about GenAI’s use, with 71% of tax firm professionals and 75% of corporate tax respondents believing it should be applied, a significant increase from 2024 figures . The report also notes that 21% of tax, audit, and accounting firms are now using GenAI at an enterprise level, up from 8% in 2024 .
Also Read:
- CFOs Accelerate AI Adoption for Finance Productivity Amidst Evolving Landscape
- Construction Industry Embraces AI Amidst ‘Maturity Gap’ in Implementation
However, a notable gap exists in preparedness. The Thomson Reuters report reveals that 70% of tax firms lack policies guiding GenAI use, and 72% do not offer training in this technology, the highest percentages among all professions surveyed . Despite these challenges, professionals increasingly view GenAI as an augmentation tool rather than a replacement for human work, recognizing its potential to streamline processes, improve efficiency, and address industry challenges like talent shortages .
