Artificial intelligence (AI) is rapidly transforming industries, and accounting is no exception.
In a recent episode of The Woodard Report Podcast, Heather Satterley and Deborah Defer, Director of CAS Consulting at Woodard, explored how AI is revolutionizing accounting practices and shaping the future of the profession.
Here’s a breakdown of their discussion, which highlights the transformative potential of AI and its growing role in the accounting industry.
Deborah's journey in public accounting began in 2007 and evolved through her work with SS&G and later BDO. As the leader of BDO’s technology team, Deborah witnessed firsthand the rapid growth of AI-driven business services, helping the firm scale from $12 million to $70 million in revenue.
This remarkable growth reflects the increasing importance of AI-powered tools in streamlining operations and driving efficiencies in accounting.
The conversation highlighted a central theme: AI is not about replacing accountants but enhancing their capabilities. As Deborah aptly put it, AI is likely to account for 49% of the work, leaving the remaining 51% to human expertise.
This blend of AI-powered tools and human judgment is essential for fostering better client relationships and delivering superior advisory services.
AI adoption in accounting has been met with both excitement and apprehension.
A recent Menlo Ventures report noted that enterprise AI spending surged from $2.3 billion in 2023 to $13.8 billion in 2024. While 82% of accountants express interest in AI, only 25% are actively investing in training their teams.
This discrepancy underscores the challenges of change management and the need for firms to develop clear policies and processes for AI integration.
Heather and Deborah emphasized the importance of staying ahead by experimenting with AI tools. Conferences like Digital CPA and Scaling New Heights provide a platform to explore cutting-edge technologies and learn from industry leaders.
Deborah shared her enthusiasm for Aider, a generative AI tool that integrates with financial software like QuickBooks and Xero. This tool provides proactive insights, such as identifying potential cash flow issues, and communicates them to clients using AI-generated video messages. Tools like Aider exemplify how AI can enhance client engagement and operational efficiency.
Heather recounted her daily use of ChatGPT, which she finds indispensable for tasks ranging from drafting emails to conducting research. Similarly, Deborah highlighted the transformative impact of AI-powered accounts payable tools like Vic AI, which reduce data entry time from several minutes to just one minute per invoice.
The discussion also touched on the importance of trust but verify. AI tools can provide highly accurate outputs, but human oversight remains crucial to ensure accuracy and relevance.
Heather noted that while she relies heavily on ChatGPT for drafting content, she always reviews and refines the output to align with her professional standards and tone.
One of the key debates revolves around the use of AI in education.
Deborah expressed concern that restricting AI use in schools might hinder students’ readiness for the AI-driven workplace. Heather countered by emphasizing the importance of mastering foundational skills before relying on AI. She likened it to learning to manually complete a tax return before using software, a practice that builds critical problem-solving skills and a deeper understanding of the underlying concepts.
This perspective underscores the need to balance innovation with foundational learning. While AI can accelerate tasks and enhance decision-making, a solid grasp of accounting principles is essential to effectively leverage AI tools.
Looking ahead, AI’s role in accounting will continue to grow, driven by advancements in technology and increasing adoption rates.
Deborah and Heather discussed the emergence of AI agents, which not only generate insights but also execute tasks, such as creating invoices based on financial data. These developments promise to further streamline workflows and enhance the value accountants bring to their clients.
But the rapid pace of AI adoption also raises questions about regulation and ethical considerations.
Deborah noted the absence of significant government oversight in the past two years but anticipated that regulatory frameworks would soon emerge. Accountants must remain vigilant and adaptable to navigate these changes effectively.
Here are several actionable insights for accounting professionals:
Explore free AI tools like ChatGPT to understand their potential and limitations. Begin with non-sensitive tasks to build confidence.
Equip teams with the knowledge and skills to leverage AI effectively. Training ensures that professionals can make informed decisions and maximize the benefits of AI tools.
Adopt AI tools tailored to the accounting profession, such as RightWorks AI, which prioritizes data security and aligns with industry standards.
While AI can enhance efficiency, human judgment remains indispensable. Always review AI-generated outputs to ensure accuracy and compliance.
Stay informed about emerging technologies and regulatory developments. Embrace a growth mindset to remain competitive in a rapidly evolving landscape.
AI presents a wealth of opportunities for the accounting profession, from improving efficiency to enhancing client interactions. By embracing AI thoughtfully and strategically, accounting professionals can position themselves at the forefront of innovation, delivering greater value to their clients and advancing the industry as a whole.
To hear more about Deborah's take on AI, as well as other topics on interest, listen to the full podcast below or take a peek at Deborah's professional profile.
This episode is sponsored by Zoho, a unique and powerful software suite to transform the way you work, designed for businesses of all sizes, built by a company that values your privacy. Learn more at Woodard.com/podcast.