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AI and automation: Augmenting accountants, not replacing them

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Technology is evolving at a breakneck pace, and artificial intelligence and automation offer unprecedented opportunities for improving efficiency, accuracy and client service in accounting. However, the conversation usually frames these tools as replacements for accountants and advisors. That perception is far from reality.

Instead, the impact of AI and automation lies in augmenting human capabilities, freeing skilled professionals from tedious, repetitive tasks so they can focus on higher-value work. This shift allows firms to realign their workforce toward client engagement, problem-solving and strategy.

We hear fears of AI taking over jobs, but the truth is that these technologies are not equipped to replace human judgment, creativity or ethical discernment — elements central to the work of accounting professionals.

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AI excels at handling repetitive, well-defined tasks that require speed and precision, which makes it a valuable ally, rather than a competitor. Accountants provide critical insights, tailor financial advice based on specific client needs and guide businesses through complex tax and compliance requirements — skills that can’t be automated.

The current applications of AI and automation reflect this divide. For example, AI might assist in drafting blog content or summarizing financial data for advisory engagements. It can’t replace the final editorial review, fact-checking or the nuanced adjustments required to meet a client’s unique goals. AI can compile and analyze, but humans make the final decisions based on experience, empathy and ethics.

Leveraging automation for repetitive tasks

One benefit of AI and automation is the ability to offload tasks that, frankly, most people would rather not do. Bots excel at performing tedious, repetitive tasks that require consistency but offer little room for strategic thought or innovation.
Here are a few examples:

  • Automated data transfers: In many firms, employees manually transfer information from one system to another. With automation, bots can handle data transfers between platforms, reducing mistakes and saving valuable employee hours for more meaningful work.
  • Document verification: Bots can routinely check websites for confirmations, perform data validations or manage other duties requiring long hours and repetitive actions. Bots don’t need breaks or vacations, so they’re ideal for tasks that, while essential, are time-intensive and tedious for humans.

Delegating these tasks to bots frees employees to engage in complex problem-solving, client relationships and strategic planning — activities that add value to the firm and its clients.

A framework for the ethical and practical use of AI

As use cases for AI and automation continue to evolve, firm leaders must aim to adopt a human-centered approach. This framework keeps humans in the loop at critical decision points, using AI as a tool to enhance human productivity, rather than replace it.

For example, AI lacks ethical judgment and moral understanding, which are crucial elements of professional services. Whether deciding on a course of action for tax planning or assessing the broader implications of financial strategies, human input is indispensable.

Also, AI can process massive amounts of data but can’t apply creative thinking or adapt insights to nuanced client needs. For example, AI may suggest a standard cash management strategy based on historical data, but only an advisor familiar with the client’s unique situation and future goals can tailor the recommendation to fit.

Adopting human-centric AI means using these tools as a means to an end — enhancing the accountant’s role, not diminishing it. Human-centered AI supports professionals by handling routine tasks, allowing them to exercise judgment, creativity and empathy where they matter most.

Reimagining roles with technology

To fully harness the potential of AI and automation, we need to look at where these technologies can enhance, rather than replace, accountants’ work. Think of automation and AI as tools to elevate professionals by removing obstacles to productivity. When looking for augmentation opportunities, ask questions like:

  • Where do we currently use staff to perform rote data entry that we could automate?
  • Which processes require multiple system logins and manual inputs?
  • How can we use automation to handle mundane tasks?

This mindset is about more than just improving efficiency; it’s about improving the employee experience by allowing accountants to focus on more engaging work.
Ultimately, the goal of introducing AI and automation into your firm should be to add value to each role. By automating repetitive tasks and augmenting the work of accountants, you create a more enriching, rewarding environment where employees can focus on high-impact activities that clients truly value.

Consider tasks accountants currently perform that could be handled by automation. Could that time be reallocated to tasks that require human skills — such as interpreting data, building client relationships or guiding clients through complex decisions? By focusing on value-driven technology integration, you can create a more efficient team that’s also more satisfied and engaged in their work.

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Accounting

IAASB tweaks standards on working with outside experts

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The International Auditing and Assurance Standards Board is proposing to tailor some of its standards to align with recent additions to the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants when it comes to using the work of an external expert.

The proposed narrow-scope amendments involve minor changes to several IAASB standards:

  • ISA 620, Using the Work of an Auditor’s Expert;
  • ISRE 2400 (Revised), Engagements to Review Historical Financial Statements;
  • ISAE 3000 (Revised), Assurance Engagements Other than Audits or Reviews of Historical Financial Information;
  • ISRS 4400 (Revised), Agreed-upon Procedures Engagements.

The IAASB is asking for comments via a digital response template that can be found on the IAASB website by July 24, 2025.

In December 2023, the IESBA approved an exposure draft for proposed revisions to the IESBA’s Code of Ethics related to using the work of an external expert. The proposals included three new sections to the Code of Ethics, including provisions for professional accountants in public practice; professional accountants in business and sustainability assurance practitioners. The IESBA approved the provisions on using the work of an external expert at its December 2024 meeting, establishing an ethical framework to guide accountants and sustainability assurance practitioners in evaluating whether an external expert has the necessary competence, capabilities and objectivity to use their work, as well as provisions on applying the Ethics Code’s conceptual framework when using the work of an outside expert.  

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Accounting

Tariffs will hit low-income Americans harder than richest, report says

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President Donald Trump’s tariffs would effectively cause a tax increase for low-income families that is more than three times higher than what wealthier Americans would pay, according to an analysis from the Institute on Taxation and Economic Policy.

The report from the progressive think tank outlined the outcomes for Americans of all backgrounds if the tariffs currently in effect remain in place next year. Those making $28,600 or less would have to spend 6.2% more of their income due to higher prices, while the richest Americans with income of at least $914,900 are expected to spend 1.7% more. Middle-income families making between $55,100 and $94,100 would pay 5% more of their earnings. 

Trump has imposed the steepest U.S. duties in more than a century, including a 145% tariff on many products from China, a 25% rate on most imports from Canada and Mexico, duties on some sectors such as steel and aluminum and a baseline 10% tariff on the rest of the country’s trading partners. He suspended higher, customized tariffs on most countries for 90 days.

Economists have warned that costs from tariff increases would ultimately be passed on to U.S. consumers. And while prices will rise for everyone, lower-income families are expected to lose a larger portion of their budgets because they tend to spend more of their earnings on goods, including food and other necessities, compared to wealthier individuals.

Food prices could rise by 2.6% in the short run due to tariffs, according to an estimate from the Yale Budget Lab. Among all goods impacted, consumers are expected to face the steepest price hikes for clothing at 64%, the report showed. 

The Yale Budget Lab projected that the tariffs would result in a loss of $4,700 a year on average for American households.

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Accounting

At Schellman, AI reshapes a firm’s staffing needs

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Artificial intelligence is just getting started in the accounting world, but it is already helping firms like technology specialist Schellman do more things with fewer people, allowing the firm to scale back hiring and reduce headcount in certain areas through natural attrition. 

Schellman CEO Avani Desai said there have definitely been some shifts in headcount at the Top 100 Firm, though she stressed it was nothing dramatic, as it mostly reflects natural attrition combined with being more selective with hiring. She said the firm has already made an internal decision to not reduce headcount in force, as that just indicates they didn’t hire properly the first time. 

“It hasn’t been about reducing roles but evolving how we do work, so there wasn’t one specific date where we ‘started’ the reduction. It’s been more case by case. We’ve held back on refilling certain roles when we saw opportunities to streamline, especially with the use of new technologies like AI,” she said. 

One area where the firm has found such opportunities has been in the testing of certain cybersecurity controls, particularly within the SOC framework. The firm examined all the controls it tests on the service side and asked which ones require human judgment or deep expertise. The answer was a lot of them. But for the ones that don’t, AI algorithms have been able to significantly lighten the load. 

“[If] we don’t refill a role, it’s because the need actually has changed, or the process has improved so significantly [that] the workload is lighter or shared across the smarter system. So that’s what’s happening,” said Desai. 

Outside of client services like SOC control testing and reporting, the firm has found efficiencies in administrative functions as well as certain internal operational processes. On the latter point, Desai noted that Schellman’s engineers, including the chief information officer, have been using AI to help develop code, which means they’re not relying as much on outside expertise on the internal service delivery side of things. There are still people in the development process, but their roles are changing: They’re writing less code, and doing more reviewing of code before it gets pushed into production, saving time and creating efficiencies. 

“The best way for me to say this is, to us, this has been intentional. We paused hiring in a few areas where we saw overlaps, where technology was really working,” said Desai.

However, even in an age awash with AI, Schellman acknowledges there are certain jobs that need a human, at least for now. For example, the firm does assessments for the FedRAMP program, which is needed for cloud service providers to contract with certain government agencies. These assessments, even in the most stable of times, can be long and complex engagements, to say nothing of the less predictable nature of the current government. As such, it does not make as much sense to reduce human staff in this area. 

“The way it is right now for us to do FedRAMP engagements, it’s a very manual process. There’s a lot of back and forth between us and a third party, the government, and we don’t see a lot of overall application or technology help… We’re in the federal space and you can imagine, [with] what’s going on right now, there’s a big changing market condition for clients and their pricing pressure,” said Desai. 

As Schellman reduces staff levels in some places, it is increasing them in others. Desai said the firm is actively hiring in certain areas. In particular, it’s adding staff in technical cybersecurity (e.g., penetration testers), the aforementioned FedRAMP engagements, AI assessment (in line with recently becoming an ISO 42001 certification body) and in some client-facing roles like marketing and sales. 

“So, to me, this isn’t about doing more with less … It’s about doing more of the right things with the right people,” said Desai. 

While these moves have resulted in savings, she said that was never really the point, so whatever the firm has saved from staffing efficiencies it has reinvested in its tech stack to build its service line further. When asked for an example, she said the firm would like to focus more on penetration testing by building a SaaS tool for it. While Schellman has a proof of concept developed, she noted it would take a lot of money and time to deploy a full solution — both of which the firm now has more of because of its efficiency moves. 

“What is the ‘why’ behind these decisions? The ‘why’ for us isn’t what I think you traditionally see, which is ‘We need to get profitability high. We need to have less people do more things.’ That’s not what it is like,” said Desai. “I want to be able to focus on quality. And the only way I think I can focus on quality is if my people are not focusing on things that don’t matter … I feel like I’m in a much better place because the smart people that I’ve hired are working on the riskiest and most complicated things.”

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