Tax pros embrace AI, fear missing out more than losing jobs

It wasn't that long ago that tax professionals were wringing their hands over a hypothetical future where an army of robots mercilessly sent thousands of accountants to the unemployment line. That was back in 2016, and now, almost a decade later, the majority of tax professionals have done an about-face on AI and are ready to embrace it as a vital business resource.

According to a new report conducted by Thomson Reuters, there has been a seismic shift in attitudes toward generative AI among tax and accounting professionals. Nearly three-quarters (71%) now believe the technology should be applied to their daily work, up from 52% in 2024. 

What's more, the percentage of tax firms already implementing gen AI technology has nearly tripled year-over-year, jumping from 8% in 2024 to 21% in 2025.

Gradual acceptance

The trend is a transformation in how professionals view AI technology, both internally and from a client perspective. Overall, 13% of firms indicate that gen AI is already central to their organization's workflow, and 32% are expecting full integration within one year. A staggering 79% of tax and accounting firms expect significant gen AI integration by 2027, making the accounting profession one of the fastest-growing industries for gen AI acceptance in the professional services sector.

It's clear that initial skepticism has rapidly given way to the recognition of gen AI's potential to enhance productivity and client service delivery. That's largely due to a number of market factors. For starters, early movers on the technology have already started to find their job roles have been optimized, not replaced. Meanwhile, firms that aren't making use of gen AI for their tax and accounting work are increasingly being perceived by clients as behind their peers in terms of efficiency.

In fact, more than any other industry, clients want to work with firms that they perceive to be harnessing cutting-edge technology to improve their tax processes. Overall, 77% of clients from corporate businesses are looking to the tax firms working for them to use gen AI. Additionally, 14% have also instructed tax firms to use gen AI in their official tendering document compared to 8% of those who have instructed law firms to do the same.

Job security concerns fade

This huge uptick in adoption is largely due to tax professionals' fading concerns about their job security. Of the firms using gen AI in their work, almost half (44%) are using the tools either multiple times a day, or daily, the most common uses being tax research (77%), tax return preparation (63%) and tax advisory (62%).

While it may have been trendy to predict a dystopian landscape, pragmatists realized years ago what tax professionals now understand: Artificial intelligence is a powerful augment, not a suitable replacement, for human ingenuity. Now, only 9% of tax, accounting and audit professionals view gen AI as a threat to industry jobs. A majority (54%) see minimal or no threat to employment.

The undefined future

While it certainly seems on the surface that the tax landscape has only been enhanced by the emergence of AI, organizations need to be prepared for the unexpected.  According to a recent Brookings report, tax preparers will be among the jobs most exposed to AI. While the report does not specify whether AI will aid workers or replace them, it does note that the technology is rapidly transforming several industries, which could affect many types of jobs in the future. Meanwhile, Thomson Reuters research shows 70% of tax firms say they have no formal policies governing gen AI use, which presents potential risks as implementation accelerates.

So, for all the justifiable excitement over the prospects of less stressful tax seasons and time saved, tax professionals still need to treat AI like a work in progress. Without question, the days of fear and doomsday prophecies are in the past, and organizations are now embracing the transformative journey of AI integration. As AI continues to evolve, it has the potential to revolutionize tax and accounting practices. Firms that can remain fluid and nimble in their approach will not only find the easiest path forward, but will reap the rewards: cue increased efficiency, reduced human error, enhanced client service, and the ability for professionals to focus on higher-value strategic work.