Agentic AI is on the brink of reshaping the accounting profession, promising to automate complex tasks and empower CPAs to focus on what they do best: strategic thinking and client advisory. But what exactly is agentic AI, and how will it change the daily work of accountants?
Understanding Agentic AI: Beyond Generative Tools
While generative AI tools like ChatGPT have already made waves by generating text and images from prompts, agentic AI takes things a step further. It’s designed to act with agency—meaning it can set goals, plan, adapt, and make decisions with minimal human input. Imagine having a digital team of Ph.D.-level researchers, tirelessly working through complex projects at lightning speed. That’s the promise of agentic AI.
Unlike generative AI, which needs detailed, step-by-step instructions, agentic AI can autonomously solve multistep problems. For example, instead of just summarizing a meeting, agentic AI could research recent tax law changes, synthesize insights, and create a client-ready presentation—all on its own.
How Agentic AI Works
Agentic AI operates through a four-step process:
- Perceive: It gathers information from various sources—text, audio, sensors, and more.
- Reason: Using advanced language models, it processes data and sets goals.
- Act: The AI executes tasks independently to fulfill user requests.
- Learn: Through feedback and experience, it continuously improves its performance.
This ability to learn and adapt makes agentic AI a powerful tool for streamlining workflows and tackling tasks that previously required significant human oversight.
Real-World Applications for Accountants
Agentic AI is already being tested in areas like:
- Automating client advisory services, including bookkeeping and report generation
- Enhancing real-time auditing with better fraud detection
- Conducting directed research with more relevant results than traditional AI tools
Soon, accountants may find agentic AI embedded in their everyday software, quietly making interfaces more intuitive and results more sophisticated. The technology is also being paired with do-it-yourself automation tools, enabling even small firms to build custom automations and improve efficiency.
Actionable Tips for Accountants
- Get Curious: Start learning about agentic AI and how it works. Attend webinars, read up on the latest developments, and experiment with new tools.
- Evaluate Processes: Identify which tasks in your workflow could benefit from automation and which require human judgment.
- Vet Vendors Carefully: When considering new AI solutions, ask for compliance documentation (like SOC 1 or SOC 2 reports) and ensure data privacy standards are met.
- Stay Strategic: Don’t rush to adopt every new tool. Focus on solutions that align with your firm’s goals and add real value.
- Maintain Human Oversight: Remember, AI is a powerful assistant, but critical decisions and creative thinking still require a human touch.
Challenges and Considerations
Adopting agentic AI isn’t without its hurdles. Accountants will need to adapt to new ways of working and develop trust in AI-generated outputs. Transparency can be an issue, as the decision-making processes of agentic AI may not always be clear. It’s crucial to determine where human involvement is necessary, especially for high-stakes decisions.
Data privacy and compliance are also top concerns. Firms should ensure that any AI solution they use complies with regulations like the CCPA and GDPR, and that data is stored and accessed securely.
The Road Ahead
Agentic AI is not a passing trend—it’s a transformative technology that will soon become a staple in accounting and finance. By embracing it thoughtfully and strategically, CPAs can boost productivity, deliver greater value to clients, and even reclaim some work-life balance.
Key Takeaways
- Agentic AI can autonomously handle complex, multistep accounting tasks.
- It frees up CPAs for higher-value work like analysis and strategy.
- Careful vendor selection and compliance checks are essential.
- Human oversight remains critical for creative and strategic decisions.
- Early adoption and education will help firms stay ahead in a rapidly evolving landscape.