‘Almost right isn’t good enough’: AI warning to accountants

The research warned that up to $143 billion in client revenue is at risk in the US alone if accounting, tax, and related professional services firms fail to implement AI effectively and meet rising client expectations for AI-driven value delivery. 

Steve Hasker, president and chief executive of Thomson Reuters, said: “Firms that are operationalising AI are pulling ahead. Those that aren’t are starting to take on real risk, across talent, clients, and financial performance.”

This signals commercial pressure on firms to modernise workflows or risk losing mandates. 

The report also pointed to an evident AI adoption gap in tax and accounting practice. 

While 82 per cent of professionals across legal, tax and audit functions already used AI tools weekly, organisations in accounting and taxation were struggling to translate adoption into measurable productivity gains or client value, according to the findings.

The report found that 91 per cent of professionals believe their firms fell short of AI’s potential, exposing a widening gap between usage and execution. 

In accounting, tax and compliance functions, the rise of “shadow AI” is creating growing regulatory and governance concerns. 

Around one-third of accountants, lawyers and compliance professionals are using AI tools not approved by their organisations, increasing exposure to unmanaged risk, particularly where confidential financial and client data is involved.

The research said that 96 per cent of professionals require AI systems to safeguard confidential data, while 94 per cent demand verified authoritative content, and 90 per cent require explainable outputs. 

“When outputs shape legal judgments, regulatory filings, or client advice, ‘almost right’ isn’t good enough,” Hasker noted. 

Further, the report showed that AI capability is becoming a retention and recruitment factor in accounting and tax firms, with employees favouring organisations that offer more advanced digital tools. 

In fact, one in four professionals considered leaving within two years if AI capability gaps persisted, with access to professional-grade AI increasingly shaping career decisions.

The report indicated that clients now expect AI-enhanced accuracy and speed in accounting and tax services. 

Client expectations are rising, according to the report, as 78 per cent viewed AI-enabled improvements as essential, while only 6 per cent believed most providers meet that standard. 

Hasker said firms must build “fiduciary-grade AI, technology professionals can verify, trust, and ultimately stand behind.”