🔒AI reshapes how accounting firms operate

A lot has been written about the transformational potential of artificial intelligence in a range of professions, but none might seem so ripe for its adoption as the data-rich field of accounting. CPA firms are increasingly embedding generative AI into everyday workflows — from internal communications to financial analysis — as the profession grapples with labor constraints, growing data complexity and client demand for faster insights. While adoption remains uneven, early movers say the technology is already changing how routine work is performed and how value is delivered. “I’ve been talking about AI for a long time, and how it’s going to transform our business,” said Drew Andrews, managing partner and CEO of Hartford-based Whittlesey, an independent regional accounting and consulting firm with about 170 employees and offices in Connecticut and Massachusetts. Andrews said basic generative AI tools, including Microsoft Copilot, have been rolled out firmwide to assist with business communications and internal operations. Whittlesey has also implemented tools that utilize AI in researching and delivering information for clients. “For instance, looking at someone’s year-end results, their income statement, their financial results and comparing it to peer data in their industry,” he says, noting that the time spent on such tasks has been radically reduced. Andrews said that in a profession long reliant on manual entry of complex data, AI is also reducing the risk of errors. Whittlesey has a dedicated technology team that works with clients on cybersecurity and AI implementation and has also reviewed emerging industry tools, including those that could eventually handle highly sensitive tasks such as tax return preparation. Andrews said that in a profession sometimes resistant to change, the challenge is keeping up with the pace of technological development. “With AI I think if you close your eyes for a few months, you’re outdated, you’re obsolete, you’re behind the eight ball,” he said. Industry data show many firms are still in the early stages of adoption. The Thomson Reuters 2025 Generative AI in Professional Services Report found that 21% of tax firms are using generative AI technology, while 53% either plan to use it or are considering it. A quarter of firms reported no current plans to adopt generative AI, but that share was down from 49% in 2024.

Major investments

Steve Ronan, the chief strategy officer at national accounting and advisory firm Citrin Cooperman, said manual data entry is among the areas where AI tools are advancing fastest and where firms can realize immediate gains.

“Think about activities that happen across the firm: getting data from clients, processing that data, transforming it, normalizing that data,” he said. “Those are things that all of our service offerings need to do, it’s also something that AI is pretty good at and for which there are ready-made use cases.” Those experiences align with a recent Stanford University study of 79 small- and midsize firms, which found AI is increasingly handling repetitive tasks such as transaction classification, allowing accountants to shift their focus to higher-value work. The survey also found that companies that used AI were reporting that the quality of their record keeping improved. Citrin Cooperman, which has a Connecticut office in Woodbridge and more than 30 locations overall, has fully deployed some tools, is piloting others and is working with specialists on emerging applications, Ronan said. “We are continuing to watch and engage with a number of other vendors and thought leaders within the industry about what is on the horizon,” Ronan said. “It’s very much a co-creation environment between accounting firms and the vendors.” According to the Thomson Reuters survey, Big Four firms are using AI across a range of functions, including initial audit documentation reviews, tax preparation data entry, customized software development, bookkeeping automation and predictive insights for tax advisory services. That widespread use is backed by significant capital commitments. The Big Four have made multibillion-dollar commitments to artificial intelligence. Deloitte has earmarked about $3 billion for AI development and partnerships, and PwC in 2023 pledged roughly $1 billion over three years to expand and scale its AI capabilities. That level of spending is putting pressure on other large, midsize and small accounting firms to develop or adopt their own AI capabilities. Citrin Cooperman has brought in private-equity backing in recent years. The firm first sold a majority stake to New Mountain Capital in 2021 and last year took on an investment from Blackstone, moves it said would help fund expanded service offerings and technology initiatives. However, Ronan said that while accounting offers a natural AI use case, the profession’s high standards for trust and accuracy can limit adoption of off-the-shelf tools in some situations. He also sees AI as a more fundamental change than previous waves of technology, meaning the profession must be ready for a new mindset. “We’re making significant investments for the next several years against a pretty focused roadmap on how we’re going to adopt AI across all of our service offerings,” he said.

Human intervention

Having a roadmap is essential, according to Rick Krueger, managing principal of transformation at CliftonLarsonAllen, a major national firm with Connecticut offices in West Hartford and Shelton.

Krueger warns against what he calls “shiny object syndrome.” “I think we have to start with the vision first,” he said. “If you start with the tool, it’s almost guaranteed to fail because you’ll get sucked into a trap that doesn’t necessarily meet your long-term goals.” CLA, similar to other firms, has already rolled out Microsoft Copilot and Microsoft Power Platform to all of its employees for general use. Krueger said the next wave involves custom-built tools developed in-house, including one for the firm’s scheduling system. “It takes the data for the almost 9,000 people that we have, all the different client needs that we have, and does something that would be impossible for any individual person — figures out a way to optimize and make sure we’re bringing the right people to the right client need at the right time,” he said. CLA is also taking a methodical approach to adoption, using in-person, case-study-based training for early-stage employees, which Krueger said has boosted confidence and AI skills. And while he agrees that confidentiality is a non-negotiable for any AI tools the firm adopts, he’s less focused on 100% accuracy, because there will always be a human check in the loop. “I’ve seen accuracy become a trap at a lot of organizations that are looking to do more with technology but still unsure where to start,” he said. “I tend to think predictability is much more important than accuracy because whether it’s a new associate doing something, a seasoned associate doing something, or technology helping with something, either way it needs somebody to be reviewing that and ensuring the accuracy before it goes out the door.”

New workforce expectations

Meantime, there’s general agreement across the profession that while the intent is not to replace accountants, technological change is altering the skill level that new hires need — and hence changing the dynamic for accounting education in the very near future. “If you educate them the same way, they’re not going to be ready to start working for us,” says Whittlesey’s Andrews. “Instead of the first-year person that starts, they’re going to have to be at the level of a three- to four-year person that we have now.” Andrews said he has seen more change in the profession in the past three years than in the previous 30, and he does not expect the pace to slow. “What accounting is going to look like in three to five years is going to be totally different than what it looks like today,” he said.