Last updated: 17 Aug 2026 10:00 Posted in:
Dr Tim V. Eaton and Addison Lemon (Miami University’s Farmer School of Business) explain why AI literacy is becoming an essential skill for accountants, and explore its practical applications, governance and implementation strategies.
Every decade brings a new technology that reshapes the accounting profession. When personal computers entered the workplace in the 1980s, some professionals embraced the technology, others took a wait-and-see approach, and some resisted the change altogether. This pattern has remained consistent through every major innovation, from the internet and cloud computing to smartphones and now artificial intelligence (AI).
Where does AI stand today? AI is one of the most discussed topics in the accounting world, and rightly so. From aiding in decision-making to exponentially increasing output, AI is no longer optional in the workplace. Deloitte’s 2026 ‘State of AI in the Enterprise’ report found that employee access to company-sanctioned AI tools increased by approximately 50% in just one year, demonstrating that AI is quickly becoming a standard workplace technology. As adoption grows, employers increasingly expect new graduates and experienced professionals alike to know how to add value with AI.
PwC’s 2026 ‘AI Global Jobs Barometer’ reports that junior-level positions are now seven times more likely to require senior-level skills, as AI increasingly automates many of the more mundane tasks. Despite concerns that AI will replace the work of accountants because of its ability to accurately record and summarise data, PwC found that companies making the greatest use of AI are increasing both headcount and wages. By reducing routine work, AI enables accountants to focus on high-value activities, such as strategic analysis, client service and business growth.
Like the technologies before it, AI will reward professionals who learn to use it well. The technology is already evolving beyond chatbots and content generation into agentic systems and intelligent automation that can plan, reason and execute multi-step tasks with limited human intervention. Workflow automation can include processing invoices, entering data into accounting software, monitoring transactions and responding to routine client requests.
For many accountants, however, the challenge is not recognising AI’s potential but knowing where to start.
Why AI matters for accountants
Workloads continue to grow, regulations are becoming increasingly complex and client expectations are rising. Accountants need tools that maximise efficiency and productivity. AI has considerable potential to help meet these expectations and benefit the profession.
Unlike previous technological shifts that primarily changed how accountants communicate or collaborate, AI is revolutionising how work itself gets done. Tasks that once took hours, such as researching guidance, summarising reports, drafting communications or building presentations, can now be completed in minutes.
Research shows that accountants who use AI spend 8.5% less time on traditional transaction processing, allowing them to devote more attention to higher-level analysis and decision-making. Additionally, AI users produce reports with 12% greater detail, suggesting that the technology can enhance both efficiency and the quality of financial insights. Rather than replacing accountants, AI gives professionals more time to exercise judgement, build client relationships, and deliver strategic advice.
As AI becomes more capable, employers increasingly value AI literacy: the knowledge and skills required to work with AI, including the ability to understand how AI systems work, create effective prompts, critically evaluate outputs and apply appropriate human judgement and oversight.
What AI can actually do for accountants
Many professionals struggle to identify practical applications for AI. The diagram Practical applications of AI in accounting illustrates how AI can streamline everyday accounting tasks, categorising AI applications according to the importance of speed and the value they create beyond routine or compliance-focused work.
AI can significantly enhance productivity and support better decision-making, but it complements rather than replaces professional expertise. It excels at analysing data, researching guidance, preparing draft communications, and supporting audits or client meetings. However, professional judgement, scepticism, ethics, communication and client relationships remain fundamentally human responsibilities. AI cannot sign an audit opinion, accept professional accountability or exercise ethical judgement. While it can automate many routine tasks, accountants remain responsible for evaluating AI-generated outputs, rather than relying on them uncritically, and making the final decisions.
Choosing an AI platform
AI exists across a wide range of platforms, each with different strengths, costs and security features. Many large accounting firms have invested heavily in developing internal AI tools that include secure governance frameworks and security controls, while offering features similar to popular platforms such as ChatGPT or Microsoft Copilot. In an EY survey in 2024, half of senior leaders reported they expect to allocate 25% or more of their organisation’s budget to AI initiatives in the coming year.
Smaller firms, however, are more likely to rely on publicly available platforms and must evaluate them to determine which best fit their budget, support needs and security requirements.
Several platforms dominate the market:
While each platform has its own strengths, they all continue to evolve rapidly and increasingly offer similar core capabilities.
When selecting an AI platform, businesses should consider functionality, cost, security and compatibility with existing workflows. While many AI tools offer free versions for individual users, business and enterprise plans come at an additional cost but often provide enhanced security features, governance controls and collaboration capabilities. The best platform is ultimately the one that enables employees to use AI effectively and responsibly.
Successful AI adoption requires more than selecting the right technology. Organisations should develop a clear implementation strategy, align AI initiatives with business objectives, establish governance policies, and invest in workforce training to maximise benefits while minimising risks.
Risks and governance
While AI literacy is becoming a mandatory skill for accountants and integrating AI into company technology is necessary to keep up with the competition, AI still has room for improvement and has risks associated with its use.
Hallucinations remain one of the greatest risks associated with AI use due to its ability to generate inaccurate or entirely fabricated information, while presenting it with confidence. Other concerns include data privacy, bias, lack of transparency and overreliance. Organisations must safeguard sensitive information and understand how AI systems store and process data. Because AI reflects patterns found in its training data, outputs should be reviewed for potential bias and ethical differences.
Additionally, since users often cannot fully understand how an AI model arrives at a conclusion, it can be difficult to explain, validate or defend AI generated recommendations to clients, regulators or auditors, creating a lack of transparency. Critical thinking, professional scepticism, and oversight remain essential in an AI-enabled workplace.
As AI adoption continues to grow, organisations should ask when and how they can implement a responsible AI use policy. A well-designed policy should establish guidelines for what information can be entrusted to AI systems, expectations for verifying AI-generated outputs, requirements for human oversight, and procedures for addressing confidentiality, bias and ethical concerns. These policies are becoming increasingly important as AI moves from experimentation to everyday use.
A 2025 survey found that only 43% of organisations had implemented an AI governance policy, highlighting that many companies are still developing formal safeguards for AI use.
Getting started: a practical roadmap
Learning to use AI effectively is becoming an essential workplace skill, but getting started does not have to be complicated. A practical roadmap includes the following steps:
The next essential accounting skill
The accountants who embraced spreadsheets became more productive. Welcoming the internet led to more efficient research, and adopting cloud technologies resulted in greater collaboration. AI represents the next stage in that evolution.
While every major technology shift creates uncertainty, history shows that accountants have repeatedly adapted and continued to create value through each new invention. In today’s workplace, AI literacy represents a vital skill that will set apart professionals, corporations and the accounting field as a whole.
Knowing how to use AI effectively can propel a company ahead of its competitors and improve results for everyone. The future of accounting will not be determined by whether AI exists, but by how effectively accountants combine its practicalities with professional judgement, ethical responsibilities and human expertise.
Questions to ask before implementing an AI platform
Author bios
Dr. Tim V. Eaton
Professor of Accountancy
Miami University Farmer School of Business
Addison Lemon
Accountancy and Information Systems Major
Miami University Farmer School of Business
"While every major technology shift creates uncertainty, history shows that accountants have repeatedly adapted and continued to create value through each new invention."
Dr Tim V. Eaton & Addison Lemon
Miami University Farmer School of Business