Artificial intelligence is promising to change the world. However, we need real-world examples of how firms are applying the technology.

In this session, David will highlight some examples of firms achieving breakthroughs with using AI in accounting.

Presented By: David Smith, Smithink

Video transcript – key points:

AI in Tax Advisory and Automation

David began by highlighting KPMG’s Kym Tax Initiative, an AI-powered internal tool designed to streamline tax advice. The AI has absorbed vast amounts of data, including tax legislation, training materials, and legal precedents, enabling KPMG to generate first-draft advice efficiently. The potential for AI to reduce manual tasks and improve the quality of preliminary outputs in the tax field is significant.

Enhancing Productivity with AI Tools

Many mainstream AI tools like Microsoft’s Copilot and Google’s Gemini were discussed as essential for accountants. These tools help automate routine tasks, draft emails, generate reports, and even assist in research. As David emphasised, AI can save time by automating the creation of high-quality, first-draft content, whether for emails, reports, or presentations.

AI for Data Analysis in Auditing

AI tools are proving to be particularly beneficial in auditing. By analysing large datasets, AI can detect anomalies, perform risk assessments, and ensure thorough data analysis in less time. Tools like Expert, which integrates with platforms like Xero, are already being used for auditing purposes, delivering more efficient and accurate results.

AI in Insolvency and Fraud Detection

Insolvency practitioners are also benefiting from AI’s ability to analyse financial data and detect potential fraud. AI tools can quickly sift through vast amounts of information, helping practitioners identify key documents and assets.

Security Considerations

While the benefits of AI are clear, David stressed the importance of understanding the security risks. Sensitive client data must be handled with caution, ensuring that it is not inadvertently shared with AI systems that could compromise privacy. Firms must develop a strong understanding of how AI interacts with sensitive information and implement security protocols accordingly.

Future of AI in the Accounting Profession

While current AI tools excel in automating repetitive tasks and improving productivity, they still fall short in providing predictive insights. However, as AI technology evolves, its ability to offer deeper insights and more sophisticated analysis is expected to improve significantly.

Looking to the future AI is still in its infancy, but the accounting profession is already seeing transformative benefits from its use. From automating routine tasks to improving the accuracy of data analysis, AI is helping accounting firms become more efficient and responsive to client needs. However, firms must remain vigilant about the security and accuracy of AI outputs. Find out more about David Smith there.