Navigating the AI Revolution in the Accountancy Sector: Lesson 5: AI Provides a huge opportunity

Thanks for joining us for part 6 of this 8 part blog series on AI for Accountancy firms.

In the world of accounting, technology is reshaping how firms do business and serve their clients. This change is part of a bigger trend happening in professional industries.

Accounting firms usually start by providing expert services and building a strong reputation. As they grow, they create standardised processes to ensure they’re consistent and can handle more work. These processes gradually become more automated, using digital tools and methods to work faster and better.

When businesses expand, following global standards and regulations becomes really important. Technology helps a lot in keeping everything legal and organised.

One big step in this journey is digitisation. It means that firms can now serve more clients online, making things easier and more convenient for everyone.

As accounting firms get more experienced, they often think about offering more services to help their clients in different ways.

This is where Artificial Intelligence (AI) becomes important.

AI tech helps automate internal tasks, like making complex financial information easier to understand. With AI doing the routine stuff, accountants can spend more time talking to clients, really getting to know them, and providing valuable advice.

A real-life example of this change is when an accountant is working on a client’s financial reports. It’s a lot of work to present all the financial info in a way the client can understand. AI can make this process smoother, allowing accountants to spend more time talking with clients, answering their questions, and helping them with their financial needs.

Throughout history, technology has been a powerful force that has brought about significant changes in various industries. Whether it’s the automation of production lines or the invention of farming machinery, technology has consistently played a transformative role.

One fascinating thing about technology is that it doesn’t just change the way things are done; it often helps industries grow. While certain tasks may shift, technology has the potential to make businesses more profitable while also reducing costs for consumers. This increased access to products and services can lead to the expansion of markets, creating new opportunities for businesses.

The key for companies is to be prepared to embrace these shifts in technology. Being ready to adapt to change puts a company in a position to ride the wave of innovation.

Let’s look at an example

Let’s take a well-known example: the Netflix vs. Blockbuster story.

Back in the day, Blockbuster was the king of video rentals. However, as Netflix started to grow, some employees tried to warn the company’s leadership about what they were seeing in the early 2000s. Unfortunately, no one paid much attention. Even when Blockbuster’s revenue dropped in 2004 and 2008, they blamed it on various factors like the economy.

When Blockbuster finally realised what was happening in 2010, it was too late.

Most of their business investments were tied up in physical stores, and they didn’t have the flexibility to adapt. This is where the points I’ve been discussing become crucial. Even if you’re not considering AI right now, you should start building the foundation to make your business agile in the face of potential change.

Using cloud services provides the scalability to store data and begin cleaning and maintaining that data right away. It also offers the ability to allocate computing power to analyse that data or use prebuilt AI services.

Creating a framework for deciding where to implement AI, running tests, and conducting experiments internally is a proactive way to prepare for the technological shifts that lie ahead. Unsure where to start? At Arreoblue, we want to support you through your digital transformation.

In short, technology, especially AI, is bringing positive changes to accounting. It helps firms work better, reach more clients, and keep giving top-notch service while also making client interactions more meaningful.

About Arreoblue

Arreoblue is a Data Analytics Consultancy specialising in the rapid execution of data projects from concept to delivery. With a focus on Financial Services, Retail and manufacturing, we help our clients become data-driven and make more effective decisions through data. Our commitment is to deliver fast Time to Value, ensuring that value is clear and thoroughly understood, leaving our clients with a platform for success they can continue to build upon. Want to find out more? Contact one of our experts today to see how we can create your bespoke solution!