Powering Up Your Practice for an AI era

Artificial intelligence (AI) is the phrase on everyone’s lips right now. It’s no longer a futuristic concept but already transforming how we work every day – reducing the burden of repetitive tasks and driving growth, productivity and profitability by reshaping the way businesses work. In the accounting and bookkeeping industry, that change is just as profound. 

98% of practices are already using AI in some form and it’s delivering very real benefits, according to our new research, carried out in partnership with the Centre for Business & Economics Research (Cebr) and Censuswide. Nearly half (46%) of UK accountants and bookkeepers have experienced productivity gains and it’s helped lift industry profitability by £338 million. 

It’s had a wider economic benefit to the UK too. The adoption of AI by UK accountants and bookkeepers has uplifted UK GDP by £1 billion, while the efficiencies that it’s delivered to practices and clients has added £1.6 billion in total value to the wider economy. 

However, only one in 12 accountants and bookkeepers use AI daily, which suggests there’s still plenty of untapped potential. As AI continues to automate complex tasks, streamline admin and change key processes – from data entry to fraud detection and client management – there will be even more opportunities for practices to do more with AI. 

Taking your next steps with AI

Knowing what to do next with AI might feel daunting, almost like stepping out into the unknown. However, if you’re feeling overwhelmed by the choices out there, we have some tips on where to focus first. 

Think of AI like a house with different layers that all work together. 

• Get the foundations in place – start by thinking carefully about your purpose, vision and goals for using AI in a responsible way. For example, how can AI help your practice deliver more of what clients value most? What do you want to achieve? How could it help you achieve more? 
• Use the right framing – look at all the key processes that keep your practice running and identify where time is being lost or inefficiencies are holding you back. It might be small things like bank reconciliation, invoice processing or reporting but from there you can decide which tasks to automate to free up time.  
• Select the  fixtures and fittings – your core technology platforms are where your team spends a lot of time getting work done. Evaluate your accounting systems, practice management software and apps to see if they’re ready for an AI world or if they already include new AI features that could make a difference to your day-to-day work
• Add the furnishings – consider how AI can enhance the client experience and engagement. Automating routine communications, such as compliance updates or reminders, will give more time for the important conversations. AI can also surface insights from client data, presenting information in a more meaningful and engaging way, strengthening your advisory services

Striking a balance between AI and human touch 

The final piece of the puzzle is balancing AI’s potential with human judgement, critical thinking, and empathy. More than three quarters (76%) of practices have changed their hiring strategy due to AI, with many now prioritising creativity (61%) and communication (63%). 

While AI is driving the greatest reorganisation of human capital in the history of accounting, it can’t replace the critical thinking and experience that accountants and bookkeepers bring. Instead, the future will belong to practices that blend both and that use AI to enhance human expertise. 

So often, repetitive admin tasks can keep practices from spending real quality time with their clients and providing more value through advisory services. However, by finding new ways to embed AI into your processes, you can create the space to focus on helping clients understand their data and make stronger financial decisions. It allows you to do more of the work you love, and give clients services they truly value. 

Unlocking the full value of AI

Over half (56%) of practices believe AI has already driven a breakthrough in clients financial health. This is supported by improved service levels. Practices say AI has reduced the number of errors in client work (56%), allows them to complete work faster (32%), and enables faster and clearer communication with clients (31%).

It’s clear that AI holds huge potential for the industry and we’re only just scratching the surface of what’s possible. 

If you’d like to understand how to take your next step with AI, take a look at our guide, AI in accounting: the present and future for practices, which breaks down how to approach your AI journey into a step-by-step process. Alternatively, you can also join our partner programme to access cutting-edge AI tools and comprehensive implementation guidance that will help you stay ahead in the ever-evolving accounting landscape.