Generative artificial intelligence (AI) streamlines workflows, enables process automation and provides real-time data and insights.
Using AI, professionals can now more seamlessly navigate increasing compliance requirements.
Per the Q4 2024 AICPA & CIMA Economic Outlook Survey, 30% of business executives said they are experimenting with generative AI in business applications, a 23% rise from one year ago. Generative AI is also transforming the landscape for personal financial planners and tax practitioners.
While generative AI tools are valuable for cutting costs and saving time, they also create opportunities for prompt engineering and a new set of skills that accounting and finance professionals must harness.
The capabilities and power of generative AI are transforming the profession by automating routine tasks, simplifying compliance, improving client insights and enhancing investment strategies.
ENGAGE 25: AI experts share hands-on experience
Accounting and finance professionals must deepen their knowledge to leverage generative AI effectively.
At AICPA® & CIMA® ENGAGE 25, June 9–12, in Las Vegas and live online, experts will cover everyday applications of generative AI tools like ChatGPT and Microsoft 365 Copilot which are used to boost efficiency.
Explore the Advanced Personal Financial Planning track, where John Higgins, CPA/CITP, founder and CEO of Higgins Advisory, LLC, will dive into practical sessions on how to Accelerate Your Digital Transformation with Microsoft 365 and Artificial Intelligence — How to Unleash the Power of Microsoft Copilot for CPAs.
Gen AI reduces costs and saves time
As a CPA financial planner or tax professional, you must meet regulatory requirements and sometimes work with small teams and limited resources.
Compliance automation uses AI to monitor systems for compliance and address challenges related to time and cost. This technology can handle large data volumes and perform governance tasks, which decreases the need for manual oversight. For example, it can oversee cybersecurity measures and deliver real-time reports.
By automating risk management and security control monitoring, you can streamline compliance efforts and reduce the amount of manual work required. This not only cuts costs but also saves time.
Employing customized AI-powered research tools is another way AI can reduce costs in CPA firms. By analyzing tax law updates as they happen, AI can enable you to stay current with changing regulations more effectively.
In his article on Preparing for tax season 2025, Carl Peterson, CPA, CGMA, vice president — Small Firm Interests for the AICPA, shared that “AI can play a large part in making busy season run as smoothly as possible … using data analytics to provide greater insights into the concerns that clients care about the most.”
As generative AI becomes more prevalent, it raises important ethical questions. The discussion on Tax ethics and use of generative AI systems focuses on three key areas: exercising due diligence in tax services, conflicts of interest and protecting taxpayer data.
AI drives new skill sets: AI literacy and prompt engineering
AI literacy and learning to ask the right questions are essential for maximizing AI’s capabilities. To fully leverage AI-driven insights, you must merge your expertise with new skills, particularly in AI literacy and prompt engineering.
Prompt engineering involves crafting precise inputs and questions that generate optimal and relevant outputs from generative AI models.
Training and professional development in generative AI and prompting techniques will become crucial as AI takes on more tasks.
Crafting precise prompts means more accurate output from the gen AI tool.
As a highly sought-after skill set, AI prompt managers are crucial in optimizing AI performance so organizations can gain reliable insights.
AI adoption fuels the search for talent with a competitive edge
Professionals who embrace AI and learn to leverage it will gain a strategic advantage in reducing costs and delivering personalized client service.
Investing in talent with AI-related skills, particularly those who can craft precise and relevant prompts, will provide a competitive edge. As the demand for AI-driven roles grows, securing top talent now can accelerate innovation and drive profitability.
Success also depends on your firm's ability to develop a robust AI strategy and establish a solid governance framework for AI.
Effective risk mitigation requires that human expertise be recognized as complementary to AI capabilities. When considering predictive analytics, the question arises: AI or human decisions: Which is best in predictive analytics?