AI productivity and search solutions represented the biggest growth area for technology implementations, yet the proportion of firms that actually use them remains in the minority.
Part of this lag is due to concerns over data security and privacy risks (44%), and accuracy (43%), but another reason is the perception of high costs to implement and monitor AI (35%). These concerns are consistent regardless of location, firm size or how positively or negatively one feels about AI adoption. If one wishes to get more granular, firms in the Asia-Pacific region cited limited knowledge of AI implementation as a major concern, firms in the EU were worried about degradation of skills, and firms in the U.S. expressed worry that their clients do not trust AI. Wolters Kluwer noted, though, that the specific concerns a firm has tends to depend on how they view AI unto itself.
"Firms that view AI negatively often worry about its potential impacts on decision-making, job replacement and reduced personal contact with customers," said the survey. "Conversely, enthusiastic firms are more concerned with implementation costs, lack of expertise, and potential challenges in integrating AI with existing systems. These concerns highlight practical adoption issues, rather than objections to the technology itself."
In terms of how firms plan to utilize generative AI, the top use case at 60% was client communications, which could theoretically range from simple emails to newsletters to engagement letters and more. In second place, at 50%, was using it as a productivity tool or assistant; in third place, at 48%, was scanning documents and data directly into a form or workflow; in fourth place, at 46%, was conducting tax, audit and accounting research; and, in fifth, at 39%, was bookkeeping automation.
The main benefits that accountants see in terms of AI include streamlining tasks (60%), automating processes (50%), reducing costs while boosting productivity (40%), and improving the accuracy of tax calculations (38%). However, 42% of firms that feel negatively about AI adoption are unable to see any positives at all.
The survey found that the interest in AI, and in implementing AI solutions, scales with firm size. Microfirms, defined as those with one to four employees, were generally the most skeptical, with only 33% feeling positively about the impact of AI on the profession. Meanwhile, 54% of small firms (five to 19 employees), 61% of mid-size firms (20-49 employees), and 80% of large firms (50+ employees) felt the same. Wolters Kluwer also noted that, regardless of firm size, high performing firms are more likely to implement the use of this technology; 21% of such firms (defined as those that experienced revenue growth of 5% or more in the past year) intended to implement AI-enabled tools next year, versus 19% of firms overall.
The survey also found that at least some firms think AI might necessitate changes in billing models, as increased efficiencies will make the traditional hours-based fee structure problematic from a revenue perspective, though respondents seem divided on this matter. Those saying the chance of hours-based pricing being replaced by subscription or value-based pricing is slight or not at all likely were 43% of the sample, but those 29% thought it was at least somewhat likely and 28% said it was extremely or very likely. Wolters Kluwer noted, though, that firms are already starting to head in this direction.
"This does not mean that firms are not changing business models: 19% of firms have recently changed their billing model to subscription or value pricing and an additional 19% of firms intend to make the change in the next year," said the report. "The industry seems to be maintaining a cautious approach to changing established billing practices. However, this change may become essential to staying competitive, more so when considering the 29% of firms that find it 'somewhat likely' that billing models will change."
While AI search and productivity tools represented the biggest growth area in terms of technology implementations, in terms of absolute proportions it was only third. The survey found that 44% of firms implemented client accounting solutions (up from 25% the previous year), and 39% of firms implemented client portal solutions (up from 28% last year).
