- Author: Nick Abrahams & Ben Kende
- Posted: May 20, 2025
AI Revolution in Accounting & Finance: Transforming the Industry
The integration of AI into accounting and finance is driving a paradigm shift in how financial operations are conducted, risks are managed, and strategic decisions are made. Nick Abrahams & Ben Kende share exclusive insights on how it will transform the industry in this three part series with CFO Magazine A/NZ.
According to KPMG’s global survey of 1,800 financial reporting executives, almost three-quarters of businesses are already using AI in financial reporting, with adoption set to rise to 99% in three years.1 72% of companies globally and in Australia are using AI in some form within their finance operations. 35% of Australian companies are using AI to a moderate to large degree.2 This rapid adoption is not limited to specific regions or industries, as the survey reveals widespread implementation across geographies, sectors, and company sizes.
This AI revolution in finance is attracting significant investment and strategic focus. Companies are investing substantively, with AI now accounting for at least 10 percent of IT budgets on average, a figure set to rise considerably. Boards of directors are taking strategic action, with 100 percent of surveyed companies reporting board-level involvement in AI initiatives.1 To that end, AI in accounting markets is projected to reach $26 billion by 2029.3
This all comes as a global wave of red tape is being reported by companies, with 73% of accountants reporting increased workload due to new regulations. Companies like Danske Bank, Ernst & Young, and Legendary Entertainment are turning to AI to help streamline compliance.3
What’s all the fuss about?
The benefits of AI adoption in finance are substantial. Traditional AI currently dominates the financial reporting sector, with anomaly detection and pattern recognition leading the way. Other popular AI applications include robotic process automation, machine learning, and deep learning. 74% of organisations have seen investments in generative AI and automation meet or exceed expectations.4
This efficiency gain is enabling finance teams to transition from transactional roles to strategic advisory positions. Research conducted by Accenture supports this trend, predicting that AI will drive significant productivity gains in finance functions, with AI-led processes achieving 2.4 times higher productivity.4
The monetary impact of AI adoption is equally impressive. 42% of Australian companies said the return on investment (ROI) on AI was meeting their expectations and 20% revealed it had exceeded their expectations. Only 13% of Australian companies said ROI was lower than they had anticipated.2
AI in practice
Real-world examples highlight the transformative power of AI in accounting and finance. Grant Thornton Australia’s deployment of Microsoft Copilot has saved 3.45 hours per employee weekly, enabling the implementation of a 9-day fortnight.5
This productivity boost not only improves work-life balance but also enhances overall job satisfaction. For instance, BDO Australia has implemented an AI-powered tool that automates the creation of financial statements, saving significant time for their accountants. Similarly, Pitcher Partners is using AI to streamline tax return preparation, reducing processing time by up to 70%.5
In the United States, Danske Bank has leveraged AI to streamline compliance processes, 6 while Ernst & Young offer AI solutions and services to financial institutions.7 These examples demonstrate the global reach and versatility of AI applications in finance.
Where to from here?
As we look towards 2025 and beyond, the role of AI in accounting and finance is set to grow exponentially. From automating routine tasks to providing deep analytical insights, AI is not just changing how financial professionals work – it’s redefining the entire industry. As companies continue to invest in and adopt AI technologies, we can expect to see even more innovative applications and transformative impacts in the years to come.
In our next edition, we will take a deeper dive in certain key applications of AI in accounting and finance, including the automation of routine tasks, enhancing data analysis and insights as well as personalised client advisory and improving the client experience.
About the Authors
Nick Abrahams is an AI Strategist and Speaker. He is the Global Co-leader of Digital Transformation at Norton Rose Fulbright. He is also a successful entrepreneur having co-founded Lawpath, an online legal solution with more than 500,000 customers.
He is an Adjunct Professor at Bond University where he teaches the popular online course GenAI Productivity Training for Executives. This short, online course is designed for busy professionals. It shows how to use GenAI immediately and safely to drive personal productivity and organisational transformation.
Ben Kende is an Associate in Nick’s team at Norton Rose Fulbright
References:
1 https://assets.kpmg.com/content/dam/kpmg/xx/pdf/2024/04/ai-in-financial-reporting-and-audit-web.pdf
2 https://www.accountingtimes.com.au/technology/finance-functions-see-uptick-in-ai-integration-kpmg
3 https://www.virtasant.com/ai-today/ai-in-enterprise-accounting
6 https://danskebank.com/news-and-insights/news-archive/news/2024/14032024 7 https://www.ey.com/en_gl/responsible-ai-financial-services
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