Is agentic AI the future of tax and accounting efficiency?

The accounting and tax professions are no strangers to the evolving tide of technology, but agentic AI promises something different—something more profound.

Unlike the traditional tools that simply automate routine tasks, agentic AI stands as a new frontier in accounting innovation, one that doesn’t just assist but takes on the responsibility of autonomous decision-making.

As the industry adjusts to a world increasingly shaped by machine learning and natural language processing, agentic AI is emerging as a pivotal force that could fundamentally change how professionals approach their day-to-day work.

Understanding Agentic AI: What Sets It Apart?

While automation and predictive analytics have already transformed how accounting firms operate, agentic AI goes a step further.

It is more than just a tool—it is an autonomous decision-making entity that can execute complex, multi-step processes independently.

Its ability to access vast datasets, reason through scenarios, and take proactive action in real time sets it apart from other AI technologies that have been more reactionary and task-specific.

Where traditional automation might flag an issue, agentic AI can act on that information.

In tax, for instance, it could not only identify an opportunity for tax savings but could also gather relevant data, process the tax filings, and submit the required documents to the relevant authorities—all with minimal human intervention.

Shifting From Automation to Autonomy

For the modern accountant, agentic AI represents a new way of thinking about the profession. It’s no longer just about speeding up repetitive tasks or improving efficiency; it’s about shifting the role of accountants toward higher-level, more strategic tasks.

With AI handling routine data entry, research, and compliance monitoring, professionals are free to focus on advisory services, client relationships, and complex decision-making.

This shift could reshape the value proposition of accounting firms. What was once a commodity—task-based compliance and tax preparation—could evolve into a service that is far more consultative and client-centric, enabling firms to deliver more value and establish deeper, ongoing relationships with clients.

Practical Applications: Transforming Daily Work

While agentic AI is still in its early stages, its potential is already being explored in a variety of accounting functions. Here are a few ways it could reshape the landscape:

1. Tax Compliance: The traditionally labor-intensive task of tax compliance can be revolutionized by agentic AI. It could autonomously track changes in tax law, process financial data, and ensure that all filings meet regulatory standards—saving countless hours for professionals and reducing the risk of human error.

2. Financial Auditing: Agentic AI can autonomously analyze financial records, flagging discrepancies and conducting initial audits without the need for constant oversight. This could streamline audit processes and enable accountants to focus more on strategy rather than routine tasks.

3. Strategic Planning: With its ability to process vast amounts of data and generate insights, agentic AI could become an invaluable tool in financial planning. Accountants would be able to leverage AI to forecast future trends, simulate different financial scenarios, and help clients make more informed decisions.

4. Client Advisory: As AI handles more of the compliance and data processing work, accountants will have more time to dedicate to strategic advisory services, offering clients personalized insights that could drive business growth.

Data Governance and Oversight

While the potential of agentic AI is clear, it doesn’t come without challenges. Data governance and security are critical concerns.

With AI systems accessing vast amounts of sensitive financial data, ensuring data integrity, privacy, and auditability will be paramount.

Firms need to establish clear oversight mechanisms for AI applications. This could mean creating “human-in-the-loop” processes where AI takes action based on pre-defined guidelines but is still subject to review by professionals.

Without these safeguards, firms risk undermining trust in AI technology, particularly when handling data that could be subject to regulatory scrutiny.

The Road to Integration

The promise of agentic AI goes beyond improving operational efficiency—it offers a glimpse into a future where AI and humans work in tandem to achieve greater outcomes.

But the successful integration of agentic AI will require careful planning and the cultivation of new skill sets within firms.

For accountants, this means embracing not only new tools but a shift in mindset. Instead of fearing AI’s impact on jobs, firms should view it as an opportunity to elevate their value proposition.

By automating routine tasks, AI can unlock the potential for firms to become more innovative and client-focused.

As more firms adopt agentic AI, we will likely see new business models emerge, where AI handles the bulk of routine work, leaving accountants to engage in high-level strategic thinking and value-added services.

The future of accounting, with AI as a partner rather than a tool, could be one of unprecedented growth and transformation.