Back to the future: Revisiting a blockbuster AI prediction

Just before the new year, I made some bold predictions about how artificial intelligence will change the accounting landscape in the next five years. That piece sparked many subsequent conversations with clients and colleagues, but there was one prediction that stood out and had everyone talking: By 2030, there would be as many virtual agents utilized by accounting firms as actual human accountants.

The response to this specific prediction really struck me. While most of the people I've spoken with have expressed intrigue, optimism and even excitement at the idea of having AI-powered helpers, the prediction also provoked a number of questions about exactly what those AI agents will do. New data from the Thomson Reuters GenAI in Professional Services Report has further shone a light on some of the uncertainty that exists out there among accountants when it comes to agentic AI. It finds that although 79% of corporate tax pros believe agentic AI should be applied to their work, 24% of professionals are hesitant about agentic AI, 15% are concerned, and 5% are fearful. 

With opinions so split, it underscores the need for a deeper understanding. To truly get a handle on what a 1:1 ratio of accountants to virtual agents would look like, let's take a deeper dive into how this specific prediction is already becoming a reality for some pioneering firms. 

Defining an agent

Even as businesses get a more intimate knowledge of agentic AI solutions, it's difficult for most to break away from an antiquated notion of virtual agents; chatbots that pop up from the bottom of screen or voice-activated search bots on our phones that seem more like a distraction than something that's adding any real value. To say that definition has changed in the era of agentic AI is an understatement. 

Instead of setting a simple reminder about a soccer practice or to record a voice memo, accounting virtual agents are built with intrinsic institutional knowledge that allows accounting professionals to automate and improve key functions. In this context, think of a virtual agent more as a virtual associate capable of making decisions, taking action and adapting to real-time inputs. Whereas the first generation of gen AI solutions were focused on creating content in response to specific prompts, agentic AI solutions can interact with other tools to get something done, such as sending an email directly from your account or triggering an action in your company software.

Understanding that distinction is important. More insight from the GenAI in Professional Services Report finds that 70% of professionals expect agentic AI tools to be part of their workflow by the year 2030, even though just 15% are currently using them. So as both accounting pros and clients are thrust toward this new era, they'll have to understand the strength of virtual agents and the unique capabilities they unlock. 

This is about more than just automating tasks. Leading firms are embedding agentic AI capabilities into their workflows to clear scheduling logjams, modernize tax prep, and regain the mental bandwidth to execute the intricate tasks their role requires. Think of the power this offers small and midsized firms that don't have the hiring resources to provide a dedicated associate to every accounting pro on staff. With agentic AI tools, they can. 

Agents provide more human agency

In practice, that means virtual agents are giving the accounting profession back to human ingenuity. Clients will begin to get the strategic advice they need from their accountants, and in turn, accountants can get back to delivering on the higher-order value that drew them to the profession in the first place.

Take, for example, 1040 tax return preparation. By using AI agents to process source documents and prior-year returns, extract and categorize data, and generate returns that are ready for professional review, firms are handling higher volumes while maintaining accuracy and quality.

Agents are also being used to dynamically trace accounting transactions to the corresponding banking activity, allowing firms to quickly confirm that recorded transactions have occurred and document complex situations, such as matching a single customer payment to the multiple invoices it might cover. These types of transactions act as speed bumps for accountants, especially during peak season, but they're easily avoided with better, faster record analysis.

These roads intersect at AI's ability to ensure compliance for their clients. The quick pivots of the regulatory landscape mean firms are constantly swimming upstream against changes in local, federal or global tax law. Virtual agents can limit that risk exposure by quickly culling from tax codes around the globe. Imagine having authoritative content from the American Institute of CPAs, Financial Accounting Standards Board, Governmental Accounting Standards Board and International Financial Reporting Standards (including sustainability standards), all directly integrated into an accountant's workflow. That's where the future starts to get exciting. 

Remedial removal

To some degree, there will always be a human push-pull in the race to innovate with AI. But to truly embrace the future with this 1:1 ratio of accountants to AI agents, accounting pros need to start reframing the discussion. Currently, the accounting profession's job turnover rate is highest typically after three to five years in the industry. Could that be because accountants are never shedding rudimentary tasks that are bogging down their days?

There is a path forward for accounting pros that removes the remedial tasks from their workflows, and it starts with fully embracing agentic AI solutions. Firms that find ways to make smart investments will stand to benefit in this bold new future.