iscoverAI is already part of the accounting profession. Here’s how firms can start using it safely, ethically and effectively.
Demystifying AI for accountants: a practical guide to getting started
04 August 2025
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11 minute read
Background and context
Artificial intelligence (AI) is no longer a futuristic concept. It is already embedded in many of the tools and systems accountants use every day. From document scanning and optical character recognition to automated bank feeds and email triage, AI is quietly reshaping how firms operate.
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The emergence of generative AI platforms like ChatGPT has amplified interest and concern around what this technology can do, with many accountants remaining cautious. A recent survey conducted by Praxio AI found that 21 per cent of small-to-medium accounting firms are not using AI at all, and 47 per cent use it only infrequently.
So, how can accountants practically and ethically get started with AI? And what should they be aware of before diving in?
What AI is and isn’t – a plain English guide
Artificial intelligence refers to the ability of machines to perform tasks that typically require human intelligence, such as recognising patterns, generating text, or making predictions. One of the most visible forms of AI today is generative AI, which creates new content such as text, summaries, or code based on patterns learned from vast amounts of data.
Large language models, such as ChatGPT, are a type of generative AI trained on billions of words from the internet. They do not think in the way humans do. Instead, they predict the most likely next word or sentence based on the input they receive.
Think of AI as a calculator for language — fast, powerful and always available. But like any tool, it requires a skilled human to ask the right question, understand the output, and apply professional judgement.
Where AI is most useful in practice
AI is already helping accountants work smarter by handling routine tasks and enhancing analysis. Practical examples include summarising tax legislation, rulings and technical commentary, as well as drafting emails, engagement letters and reports. AI tools can also assist in performing financial and market analysis, identifying trends and supporting strategic business planning through idea generation and scenario modelling.
Accountants are increasingly using AI to summarise content such as podcasts, ATO releases and court rulings, saving hours of manual review. This gives professionals more time to focus on interpretation and judgement.
Note-taking tools like Fireflies can transcribe and summarise meetings, allowing the accountant to stay fully engaged with the client. This improves the human element of the relationship and enables the practitioner to observe non-verbal cues such as tone and body language, something AI is not capable of replicating.
AI should not replace professional expertise. It should enhance efficiency so accountants can spend more time advising clients and creating value.
Risks and ethical considerations
While AI offers significant benefits, it also introduces real risks that accountants must carefully manage. One of the most well-known is hallucination, where AI generates responses that appear accurate but are in fact incorrect. Other risks include bias, unfair or misleading conclusions, privacy breaches, and compliance failures if inaccurate information is relied upon in professional advice.
Some AI tools may cite non-credible or even fabricated references, undermining trust in the advice being delivered. There are also broader concerns around fraud, misinformation and unethical use, particularly when AI is used without proper oversight.
A recent global study found that only 36 per cent of Australians trust AI, while 78 per cent are concerned about negative outcomes. These findings highlight the need for caution, transparency and clear boundaries when adopting AI.
Accountants should maintain a human-in-the-loop approach. This means applying professional judgement to AI-generated content, verifying sources, and avoiding entry of any sensitive client information. Responsible AI use also includes selecting secure, purpose-built tools, checking outputs for accuracy and training staff on how to use AI appropriately.
Practical tips to get started
Getting started with AI does not require a major investment or technical expertise. The best approach is to begin small and build confidence through practical experimentation.
Start by identifying a few routine tasks that AI could support, such as drafting client emails, summarising ATO materials or brainstorming ideas for business planning. Try different tools to see what fits your workflow, including both general platforms like ChatGPT, Fireflies (notetaker) and purpose-built products such as Praxio AI – Tax Assistant, which is designed specifically for tax and accounting professionals.
The way you ask questions matters. This is known as prompt design, and a few simple tips can make a big difference:
- Clearly explain what you want. Add context such as your role or the purpose of the task
- Be specific. Include details and define what you expect in the response
- Ask the AI to break down complex ideas step by step or explain its reasoning
- Use follow-up prompts to refine the output
Always ask for sources including links where available and take the time to check them.
AI is a tool, not a shortcut. When used thoughtfully, it can free up time, enhance insight and elevate the strategic value you bring to clients.
AI isn’t replacing accountants but it will change expectations
There is a common fear that AI will replace accountants. In reality, it is not the technology itself but the way it is used that will shape the future of the profession. A better way to frame it is this: AI will not replace professionals, but professionals who use AI may replace those who do not.
Firms and clients will increasingly expect staff to use AI to improve responsiveness, accuracy and efficiency. The question is no longer whether AI should be used, but where it fits within your workflow and how it should be applied.
This shift is not about losing jobs. It is about evolving roles. Accountants who can combine their professional judgement with effective use of AI will be in a stronger position to deliver timely insights, better advice and greater value.
Embracing AI today helps ensure you remain competitive in the profession tomorrow.
Getting your firm AI-ready
For firms looking to adopt AI, the key is to start small, stay practical and focus on building confidence and capability across the team. Begin by identifying specific tasks where AI can add value, such as streamlining tax research, automating meeting notes or providing industry trends and insights.
Develop internal guidelines that set expectations around when and how AI should be used. Assign a team member to act as a technology lead or champion who can trial tools and share learnings with others.
Consider testing tools in a controlled environment, often referred to as a sandbox setting. This means experimenting with AI on internal or dummy data without the risk of exposing sensitive information.
Look for training and peer learning opportunities. Lots of AI forums help teams understand both the benefits and the boundaries of using AI.
The goal is not perfection on day one, but steady progress in building the skills and systems that will support responsible AI use.
A future-ready mindset
AI is rapidly becoming foundational to how accounting and tax services are delivered. While it will not replace the human expertise at the heart of the profession, it will reshape how value is created and delivered.
The opportunity for firms is to lead with confidence rather than wait and react. By starting now, building internal capability and adopting a thoughtful approach, accountants can ensure they remain trusted and relevant in a changing landscape.
AI tools are already helping firms take these first steps, combining smart automation with the professional judgement only a human can provide.
William Young FCPA GAICD is the founder of Praxio AI, a purpose-built AI platform designed for Australian tax and accounting professionals. He is a recognised speaker and advocate for the ethical and practical adoption of AI in the accounting profession, known for delivering clear guidance, real-world examples, and actionable tips to help firms use AI with confidence and integrity.
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