SAN FRANCISCO, Feb. 19, 2025 (GLOBE NEWSWIRE) -- Karbon, the global leader in accounting practice management software, today released its second annual State of AI in Accounting Report, revealing how AI is reshaping the industry.
Today, many accounting firms are feeling the pressure of the industry’s ongoing talent shortage. The industry has seen a 33% decline in candidates sitting for the CPA exam (from 2016-2021), highlighting the urgent need to boost productivity and do more with less.
The Karbon State of AI in Accounting Report, which includes input from more than 500 accounting professionals across six continents, highlights AI’s growing role in automating workflows and improving advisory capabilities to potentially address these staffing challenges.
The report reveals that mid-sized (21-50 employees) and large firms (over 200 employees) are leading AI adoption. Findings also uncover an industry paradox—while 85% of respondents are optimistic about AI’s potential in accounting, far fewer (37%) are actively investing in AI training for their teams, leaving firms at risk of falling behind and impacting profitability.
“Karbon’s State of AI in Accounting Report is the single most comprehensive global study on AI usage, perceptions, and attitudes within the accounting community,” said Mary Delaney, CEO of Karbon. “The data shows that firms leveraging AI are more efficient, competitive, and better positioned for long-term growth. As AI integration becomes standard in accounting, ensuring employees have the training and support they need to harness AI effectively has never been more urgent.”
Other Key Findings:
- AI boosts efficiency: Firms embracing AI report saving an average of 18 hours per employee, per month, by automating routine communications tasks such as drafting emails (63%) and meeting summaries (40%).
- AI is underutilized for accounting functions: Only 13% of firms are using AI for financial analysis and research, revealing untapped opportunity for productivity.
- AI is seen as impactful on a firm's value: More than half of respondents (56%) believe the value of a firm drops if it doesn’t use AI.
- AI is a competitive edge for recruitment: 79% of survey participants believe a firm’s AI adoption will help attract and retain new talent amid a shrinking workforce.
- AI data security concerns persist: 70% of respondents expressed concerns about data security, underscoring the need for strong AI policies to build trust.
“AI is already changing the game for accounting, enabling accountants to shift to higher-value advisory work and making firms more competitive,” added Chad Davis, co-founder and partner of accounting firm LiveCA LLC, who authored the report’s foreword. “It’s evident that the need to invest in training to unlock AI’s potential is now.”
AI adoption in accounting is accelerating and is predicted to save the industry nearly $1 trillion by 2030. Karbon is at the forefront, integrating AI throughout its practice management platform to enable firms to drive productivity and deliver greater value to their clients. By helping firms automate administrative tasks, improve collaboration, and drive efficiency, Karbon helps firms remain competitive.
Accounting Professionals on AI
Deborah Harris, Co-Founder of Grow CFO
“I don't see AI as a disruption, I see it as an opportunity. It can only be a disruption if it catches us unawares and we're unable to pivot. It is my role to ensure it does not.”
Tim Petrey, CEO of HD Growth Partners
“We have to adapt and learn to leverage AI or we will be out of business. AI presents an opportunity to improve efficiency and quality of service and open doors to other types of service.”
Joel Munroe, Partner at Sepal CPA Inc.
“AI is a powerful tool for automating tasks, enhancing efficiency, and providing data-driven insights and research, allowing me to focus on high-value client advisory and strategic growth at our firm.”
Afsal CP, Team Lead at MS Chartered Accountants Ltd, under MS Group
“AI is the simulation of human intelligence in machines, enabling them to learn, reason, and solve problems. To me, it’s a powerful tool that can augment human potential, offering new ways to understand the world, solve complex problems, and improve lives.”
About Karbon
Karbon, a global leader in practice management software for accounting firms, provides an award-winning, collaborative cloud platform focused on streamlining work and communications within a firm and its clients. Karbon drives unprecedented value for its customers evidenced by its #1 ranking on G2 and customer-reported savings of 18.5 hours per week per employee. Founded in 2014, Karbon has customers in 33 countries with employees across US, Australia, New Zealand, Canada and the United Kingdom. Karbon is well-funded and backed by Tidemark, Five Elms, and Blackbird.
Media Contact:
Sergut Dejene
sergut@propllr.com
