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AI will replace some accountants using AI: How to not be one of them

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I have a confession: I am a little worried.

I’m worried because I don’t believe we’ve been representing the situation with AI in accounting correctly. In our profession, we’re fond of the mantra: “accountants using AI will replace accountants not using AI.”

But I don’t think that’s fully true anymore. Some types of accounting work, regardless of whether AI is being used by the human performing them, will be replaced by AI itself. Full stop. That’s the dirty little secret we’re not talking about enough.

This mirrors the broader trend in the corporate world. What was once whispers are now turning into public conversations, as evidenced by this recent viral internal memo from the Shopify CEO Tobi Lütke, where he directly stated:

“Before asking for more headcount and resources, teams must demonstrate why they cannot get what they want done using AI.”

A prominent venture capitalist, Victor Lazarte (a general partner at Benchmark) put it even more bluntly on the Twenty Minute VC podcast:

“Big companies talk about, like, ‘AI isn’t replacing people, it’s augmenting them’… This is bullshit. It’s fully replacing people.”

But there is a new reality that is quietly emerging: forward-thinking CPA firms are beginning to adjust their hiring strategies for entry-level roles – because AI is now capable of handling much of the foundational work those roles traditionally performed. These firms are seeing paths to grow and scale while holding steady, or even reducing their need for certain types of entry-level staffing.

It’s a development that is uncomfortable to acknowledge – but it’s also an invitation. Because this conversation isn’t really about eliminating jobs. It’s about how the shape of work is changing, and what that means for how accountants can rethink and reimagine the value we bring. How to not just survive, but truly thrive in this next chapter of the profession.
If you’re a partner nearing retirement, maybe you can wax poetic about “how we used to do it before Copilot,” and rest your laurels on your distinguished career. But for the rest of us, the question is: how do we future-proof ourselves for relevance?

The heart of the answer comes from understanding where AI is limited and understanding where humans can uniquely add value. It’s not about rejecting technology, but about recognizing that accounting roles are not all created equal and the distinctly human layer that still matters and will continue to matter.

The most successful accountants will internalize that our jobs aren’t to race against machines, but to work and collaborate alongside them—as orchestrators, strategists, and creative thinkers.

With that, here are some tips.

1. Go Where AI Can’t Be Trained Quite Yet…Emerging and Ambiguous Arenas

AI thrives on well-structured data, heuristics, and historical precedent. That makes long-established fields with high data density the most vulnerable to AI takeover.

But new and emerging domains? Those are still being defined, and that’s where humans can shine. Take crypto accounting or the evolving regulatory landscape around AI itself. These areas are inherently immature from a modeling perspective, lacking the rich historical datasets AI needs to perform reliably. That means humans will play a larger role in setting the rules, defining frameworks, and shaping the profession.

If you want a moat, find the liminal spaces where the rules are still being written. That’s where the highest human leverage will be for years to come.

2. Move Up the Judgment Curve…Into Advisory

The advisory space remains rich with human relevance because it demands something AI still struggles with: context, nuance, judgment, and true (not mimicked) creativity.
Start asking:

  • What requires interpretation and tradeoffs?
  • Where do client goals and risk tolerance shift the answer?
  • What calls for empathy or negotiation?

That’s your opportunity zone.

Don’t just run reports or surface insights; help clients understand what it means, what to do next, and what to watch out for. The most valuable professionals will be those who can interpret AI outputs and guide real-world action to truly step into the trusted advisor role.

3. Become a Bridge…Between AI Systems

As AI agents proliferate, each with specialized capabilities, a new skillset is emerging: stitching together outputs from multiple systems into something cohesive, creative, and client-ready.

This is the human layer that machines can’t easily replicate:

  • Making unexpected connections across AI tools and outputs.
  • Knowing when one system’s limitations can be offset by another’s strengths.
  • Layering on storytelling, strategy, or foresight that spans disciplines and technology systems.

Think of yourself less as the doer and more as the conductor, leveraging an orchestra of AI tools to produce something greater than the sum of its parts.

Final Thought

Here’s the truth we haven’t quite said aloud yet: your job description, the unique value you think your role brings…may already no longer exist. AI systems are furiously evolving. The technology is here. More importantly, businesses and firms are making different decisions based on those technologies today. What hasn’t caught up yet is perception.
But that’s also where the opportunity lies.

AI is reshaping the landscape of accounting, but not in a way that eliminates the profession. It challenges us to think bigger about what it means to be a value-creating accountant. As Accounting Today’s exploration of AI in advisory notes, the roles most at risk are those that are linear, repetitive, and data-heavy. But those that involve deep client relationships, nuanced understanding, and strategic foresight? Those are not only safe, they’re set to thrive.

Accountants who embrace this shift will find themselves on the frontlines of transformation, delivering greater impact than ever before. By leaning into judgment, creativity, and the ability to orchestrate across AI tools, we can elevate our work and our value.

In doing so, you’ll not only stay relevant – you’ll thrive in the evolving world of accounting.

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Accounting

New York passes CPA licensure changes bill

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The New York State Legislature passed a bill on Thursday that establishes an additional pathway to CPA licensure, and it awaits Gov. Kathy Hochul’s signature.

Backed by the New York State Society of CPAs, the legislation creates a third pathway to licensure: 120 credit-hours (or what is equivalent to a bachelor’s degree), two years of experience and passing the CPA exam. It also ensures practice mobility so out-of-state accountants can serve clients in New York.

The bill passed unanimously in the Assembly and with two negative votes in the Senate.

The New York State Capitol Building in Albany
The New York State Capitol Building in Albany.

Picasa/demerzel21 – Fotolia

“Passing one piece of legislation is not an easy task, let alone passing two,” NYCPA CEO Calvin Harris said in a statement. “Furthermore, the Society with our partners in Albany introduced additional pathway legislation this year. I’ve been told that it is almost impossible and completely unprecedented to pass any form of legislation in just one legislative session, but with the help of nearly 40 members that participated in Lobby Day in May, our exceptional Government Relations Teams and our coalition partners, which includes our PAC and Legislative Task Force, we took the united voice of the profession to the halls of power and demonstrated why advocacy is one of the greatest member benefits.”

New York is one of more than a dozen states that have already passed changes to licensure requirements in an ongoing effort to address the profession’s talent shortage. Most recently, Illinois and Minnesota passed similar bills in May.

The New York State Legislature passed another NYCPA-backed bill on June 9, which would authorize the use of electronic signatures by a person granted Power of Attorney with respect to the submitted tax documents. The bill passed unanimously in the Assembly and with one negative vote in the Senate. It also awaits the signature of Gov. Hochul.

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Accounting

SEC taps Kurt Hohl as new chief accountant

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The Securities and Exchange Commission appointed Kurt Hohl, a former partner at Ernst & Young, as its new chief accountant, effective July 7.

Acting chief accountant Ryan Wolfe will be returning to his role as chief accountant in the Division of Enforcement. 

Hohl has close to 40 years of accounting and auditing experience. In 2023, he founded Corallium Advisors, which helps businesses with auditing, regulatory compliance, risk management, and initial public offerings. Previously, he spent 26 years as a partner at EY in various roles. His final role at the Big Four firm was as global deputy vice-chair of EY’s Global Assurance Professional Practice, where he was responsible for the operation and oversight of the technical, regulatory, risk, and quality oversight functions of EY’s global professional practice organization and its more than 1,400 professionals. 

He previously worked at the SEC from 1989 to 1997, rising to associate chief accountant in the Division of Corporation Finance. There he wrote what became the Financial Reporting Manual, a primary guide for the SEC accounting staff and practitioners in the application of the federal securities laws. He began his professional career at Deloitte Haskins & Sells. He received a B.B.S. in accounting from James Madison University and is a CPA in Virginia.

“Kurt is an experienced accountant with deeply technical knowledge and international experience, and we are lucky he has decided to return to the SEC,” said SEC chairman Paul S. Atkins in a statement Friday. “This is an important role. Given that I served with Kurt previously, I know firsthand that his integrity, along with his skills, will benefit our markets and investors.”

“I’m pleased to come back to the SEC along with Chairman Atkins,” said Hohl. “This is a pivotal time for our capital markets, and I look forward to working with the dedicated public servants in the Office of the Chief Accountant to advance accounting and auditing policies that reinforce investor confidence, enhance transparency, and support innovation.”

Wolfe has served as acting chief accountant since January 2025. He concurrently has been serving as chief accountant of the Division of Enforcement and has previously served as senior associate chief accountant in the Office of the Chief Accountant.

“I want to thank Ryan for his service as acting chief accountant and am pleased that he will continue serving in the Division of Enforcement,” said Atkins.

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Accounting

How AI is redefining roles, creating new value in accounting and tax

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Each time a new tool enters the accounting profession, it tends to follow a familiar path. 

At first, it is met with skepticism as professionals assess how it will impact their work and the broader profession. Then comes a period of cautious interest, where early adopters curiously explore its potential. Eventually, the tool is gradually accepted as its value to the industry becomes clearer. We’ve seen this pattern play out with spreadsheets, tax software and cloud-based systems. Now, artificial intelligence and automation are representing the next step in that evolution, bringing the same initial uncertainty while holding the power to once again transform the profession for the better. 

AI is no longer just a distant concept, as we’re already seeing it reshape day-to-day functions within accounting. From processing data entry, invoice coding, bank reconciliation and tax compliance, tasks that once required hours of manual effort are now increasingly handled by AI. These tasks, while essential, are time-consuming and prone to human error. 

With AI, firms can dramatically reduce those risks and speed up processes with greater accuracy. For instance, invoice data can be captured and coded automatically using optical character recognition, while smart bank feeds and rules-based automation can reconcile transactions without the need for manual matching by drastically reducing the time your clients spend on account payables. With the right tools, they can scan invoices, automate approvals and schedule payments in just a few clicks, freeing them up to focus on running their business instead of chasing paperwork. 

This automation isn’t just about efficiency, it’s about redefining the accountant’s role, shifting the focus from repetitive, rules-based tasks to higher-value work like data interpretation, client advising and developing financial strategies that drive business growth. As accountants have more time freed up from mundane and time-consuming tasks, they have the opportunity to step more fully into an advisory role, one that’s increasingly in demand as clients more frequently look to their accountants for strategic insights. 

Much like the cloud revolution a decade ago, which introduced real-time collaboration, remote work and integrated workflows that made firms more agile, this transition to AI builds on that momentum. It delivers deeper insights and faster decision-making, ultimately transforming not just how accountants work, but what they can offer. 

Delivering more value in real time

The most successful firms today are using AI tools not just to save time, but to unlock new areas of value for their clients. Instead of only looking backward with compliance reporting, accountants can now look forward, offering insights into business trends, modeling future scenarios and guiding clients through uncertainty. Accounting software providers are actively investing in AI-driven features to streamline operations and enhance advisory capabilities. AI-powered forecasting tools can analyze cash flow patterns and predict future shortfalls or surpluses, while automated tax planning tools can simulate various scenarios to help clients optimize deductions and minimize surprises come tax season. 

This positions accountants not only as financial stewards but as strategic advisors, as AI enables them to shift from reactive to proactive support. As client expectations evolve, so too must the services firms provide. Clients are no longer content with one-time, year-end tax support. They want real-time answers, ongoing guidance and a proactive partner who helps them stay ahead of regulatory, economic or operational changes. Meeting these expectations requires firms to embrace this technology as a tool to deliver deeper value, as opposed to a threat to their business or jobs. 

Building client relationships

AI enables firms to deliver on rising client expectations, but it’s the human connection that truly strengthens those relationships. Real-time data analysis tools now allow for more frequent and meaningful check-ins, while automated alerts flag unusual spending patterns or missed payments. However, it’s crucial to remember AI doesn’t replace the client relationship, it enhances it. While AI tools can provide deeper insights in a quicker manner, they can’t replicate the trust and empathy that comes with human relationships. By removing repetitive, time-consuming tasks, accountants gain more time to build trust, answer strategic questions and help clients plan for the future. 

That’s why soft skills are more important than ever, as accountants need to have strong communication skills and be critical thinkers and active listeners. They’re the crutch to help clients translate complex financial concepts into relatable language and confidently guide them through major business or financial decisions. Many firms are already investing in training to develop these human-centered capabilities alongside technical expertise because as automation grows, it’s the accountant’s insight, empathy and ability to build lasting relationships that will make the difference. 

An opportunity for smaller firms

Smaller firms, in particular, have a lot to gain from the AI shift. With leaner teams and tighter budgets, it can be difficult to match the range of services offered by larger firms. Automation helps level the playing field by enabling smaller practices to take on more work with fewer resources, which can reduce burnout and allow them to expand into new offerings. With the right tools, even a small firm can deliver insights that rival those of much larger competitors. 

As firms lean into this shift, it’s critical to keep in mind that AI is only as valuable as the quality of the data it receives. Inaccurate or incomplete information can lead to poor analysis and misguided recommendations. While AI can identify patterns, it can’t explain the underlying causes or context, that responsibility still falls to the accountant. The firms that will thrive during the AI era are the ones that will also build in the oversight, quality control and human insight to use it effectively. 

Transforming the accounting journey for firms and clients

Firms also need to consider how to implement these tools thoughtfully. Automation works best when paired with clear processes and staff training. While any firm can implement AI software, it’s crucial to think through how it will evolve how the firm operates based on current limitations, partnerships and 

more. This also expands beyond just the mundane tasks discussed earlier, it also has the potential to transform areas such as onboarding, billing, compliance and planning. AI can streamline the entire client journey — but only when it’s integrated with purpose and intent. 

These tools don’t just enhance client services, they also create internal efficiencies for accounting firms. AI can help onboard new employees more quickly by standardizing processes and training materials. By automating recurring internal tasks like generating month-end financial packages or drafting client summaries, firms can increase productivity, reduce manual errors and free up time for more strategic, high-value work. 

Despite the influx of technology we’ve seen over the past several decades, the core mission of the accounting profession hasn’t entirely changed. It’s still about helping people understand their finances, make informed decisions and plan for what’s next. AI can enhance that mission, but it doesn’t replace it. 

Accountants have always adapted: from paper ledgers to spreadsheets to the cloud. AI represents the next chapter of this journey, one that has likely the greatest potential to strengthen the profession and elevate its impact even further.

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