iscoverA recent Case Study regarding the use of AI for client advice work shows business owners continue to rely on their accountants, not AI.
AI will not replace accountants: A recent Case Study
24 October 2025
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4 minute read
AI is revolutionizing accounting by automating routine tasks and enhancing data analysis. This shift raises questions about the future role of accountants: Will AI replace them, or will it simply augment their abilities? Elf Works is an Australian business at the forefront of AI adoption in the Australian accounting industry and their recent experience with business owners and sophisticated investors throws some light on the question: In the mind of the client, will AI replace the accountant?
It’s a matter of trust
Ian Youngman, Managing Director and co-founder of Elf Works is of the view the role of the accountant is here to stay. “Over the last few months, we’ve spoken to dozens of business owners and sophisticated investors as we finalise our latest capital raise. As we sell direct to accounting firms and not to B2C customers, the question sometimes comes up; will accountants lose work to AI? Will you hit your revenue targets, solely based on B2B income from qualified accountants? This is a question from people considering an investment in an AI service business for Australian accountants.”
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There is a simple answer to this question is no.
“We have encountered universal agreement from sophisticated investors and business owners that AI will not replace the accountant, at least the accountant in public practice. They are so sure in fact they are willing to put money on it.” says Youngman, a reference to the recent capital raise.
AI for some tasks, not for others
James McPhedran, co-founder of Elfworks, believes business owners have a nuanced view of the role of AI within their businesses, and this nuanced view involves zero interest in outsourcing tax compliance to AI.
“All business owners understand the need for accuracy when lodging their tax positions with the ATO. They also understand how difficult good advice is within the complex Australian landscape. We are long way away from AI being trusted with tax compliance and complex advice in the mind of the Australian accounting client.”
Other recent surveys show the take-up of AI within businesses is lagging in Australia and those businesses that do, will often be through the through the existing platforms or for their own internal processes. Tax and Compliance does not form part of their core business and as a result they will continue to turn to their trusted partner to deliver those services. Accountants are safe at the moment and in the opinion of James, will be for some time.
The Path Forward
If you would like to trial a platform designed to help Australian accountants in public practice with research, advice drafting and a range of productivity tools that has built-in databases and validation steps to weed-out hallucinations, please contact us on
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