AI in Accounting: Transformative Potential or Overhyped?

The buzz around artificial intelligence (AI) in the business world is deafening. Between record-breaking venture funding rounds and ChatGPT becoming a household name, the question isn’t if AI will impact accounting and finance — it’s how, when, and to what extent. For ex-Big 4 CPAs, controllers, and CFOs navigating the demands of financial reporting, compliance, and decision support, this is more than a tech trend. It’s a strategic conversation. So, is AI a disruptive force poised to reinvent accounting, or is the hype getting ahead of the real-world applications? In this article — the kickoff to our six-week LinkedIn series — we examine what AI is actually doing in accounting today, what’s coming next, and where firms and professionals should focus their attention.

AI in Accounting: What’s Actually Happening?

- According to a 2024 Gartner CFO survey, nearly two-thirds of CFOs expect AI to significantly reshape finance operations by the end of 2026. - In PwC’s 2024 Global CEO Survey, 33% of CEOs said generative AI has already improved profitability, and 25% said it enhanced product or service quality.

These aren’t theoretical predictions — they reflect real investment and measurable outcomes. In the accounting and finance function specifically, early adopters are using AI for: - Automating data entry and reconciliations - Speeding up month-end close processes - Drafting financial reports, memos, and variance analyses - Enhancing internal controls through anomaly detection Gartner reports that companies deploying finance AI tools have achieved 20–30% cost reductions and processing time improvements of 25% or more, particularly in transactional areas like accounts payable and reconciliations.

The Opportunity: Freeing Accountants to Think Strategically

The most immediate benefit of AI isn’t revolution — it’s relief. By taking on labor-intensive, rules-based work (like matching transactions, checking for duplicates, or flagging outliers), AI can free up finance professionals for higher-value tasks: storytelling, strategic forecasting, and advising business leaders. Instead of spending hours digging through spreadsheets, controllers and FP&A managers can review AI-generated summaries, validate insights, and use their judgment to shape decisions. It’s not about replacing human input — it’s about amplifying it. Think of AI as your most efficient junior staff member — fast, tireless, and always on. Just don’t mistake it for a partner or reviewer.

The Risk: Overreliance on a Black Box

And that’s where the cautionary notes begin. While AI can generate impressive outputs, it doesn’t understand context, standards, or nuance — especially in regulated domains like GAAP and IFRS. Generative AI tools like ChatGPT are powerful with language, but they’re not accountants. They: - May hallucinate or fabricate plausible-sounding information - Can miss exceptions or updates in technical standards - Don’t cite sources reliably or track judgmental reasoning In short, relying solely on AI for financial decision-making is inappropriate and risky. No tool — no matter how impressive — can substitute for a CPA’s training, ethical obligation, or professional skepticism. The AICPA and Big 4 firms alike are developing internal policies and clear guardrails to define where AI can be used (e.g., drafting), and where it must be reviewed and validated by a licensed professional.

Hype vs. Reality: What’s Worth Watching

It’s easy to get caught up in buzzwords and futurism. But as recruiters focused on placing accounting and finance leaders in critical roles, we see something else: a new toolset emerging—one that smart professionals are learning to wield responsibly.

AI will not replace accountants. But accountants who can work with AI—who understand how to leverage it for productivity while upholding compliance and ethics—will outpace those who ignore or fear it.

FloQast: Elevating Accountants from Preparers to Reviewers

FloQast’s AI-powered Accounting Transformation Platform is designed to automate complex accounting workflows, enabling accountants to focus on strategic analysis rather than manual tasks. Key features include:

·   Reconciliation Agent: Automatically matches and reconciles transactions across multiple source systems, flagging discrepancies for quicker resolution. 

·   Journal Entry Agent: Automates the end-to-end journal entry process, enhancing accuracy and maintaining an auditable record. 

·   Financial Insight Agent: Produces period-over-period explanations on financial statements and identifies unorthodox transactions to monitor for risk.

These tools are built with adaptability and auditability in mind, ensuring that accounting teams can maintain control and transparency throughout their processes. (FloQast AI Overview)

AuditBoard: Streamlining Audit and Compliance with AI

AuditBoard has introduced AI-powered features aimed at enhancing efficiency and enabling auditors to focus on more strategic tasks. Notable capabilities include:

·   AI Scoping Memos: Automatically analyzes the scope of an audit and generates a detailed, structured memo, ensuring consistency and accuracy across scoping documents. 

·   AI Cross-Audit Summaries: Leverages AI to deliver executive-level summaries by consolidating audit context, findings, and trends into a single report, saving time and providing clear, actionable insights.

These AI-driven features aim to reduce the time spent on manual, time-consuming activities, allowing audit teams to focus on more strategic work.

By integrating AI into their platforms, both FloQast and AuditBoard exemplify how technology can be harnessed to enhance efficiency, accuracy, and strategic focus in accounting and audit functions. (AuditBoard AI Strategy)

What’s Next?

Next week, we dive into real-world AI use cases — the tasks finance teams are already automating, and the performance gains they’re seeing. If you’re a controller, finance director, or CPA evaluating how to upskill or adopt AI in your workflow, follow along. This series will help you make smart, ethical, and informed decisions. And if your company is looking for leaders who understand both finance and technology — Pacific Executive Search is here to help.

Sources

·   Gartner (2024). CFO Perspectives on AI and Finance Transformation.

·   PwC (2024). Global CEO Survey.

·   AICPA (2024). Guidance on Professional Use of Generative AI.

·   EY (2023). The Future of Finance: AI and Workforce Implications.