Thomson Reuters Report: Generative AI to Become Integral to 85% of Tax and Accountancy Firms by 2028

A new report from global tech and content leader Thomson Reuters reveals that 85% of tax and accountancy firms expect generative AI (GenAI) to play a central role in their operations within the next five years. The findings highlight a clear trend toward AI adoption across the accounting sector, with 95% of large firms and 77% of smaller practices planning to implement GenAI tools to enhance workflows and efficiency.

Currently, 88% of tax and accounting professionals consider technology as either significant or integral to their overall strategy. Large firms are outpacing smaller counterparts on adoption, however, with 93% actively using or considering GenAI, while only 63% of small firms report the same. This disparity is reflected in technology investments, with large firms spending approximately 30 times more than their smaller counterparts.

“Tax and accounting firms aren’t just stepping up their adoption of GenAI tools – they’re increasingly becoming a central part of how they work,” says Elizabeth Beastrom, President of Tax & Accounting Professionals Segment at Thomson Reuters. “Driving efficiency remains a key priority for firms of all sizes and those that embrace AI and automation will be able to free up time to focus on more complex work, such as advisory. While large firms are leading the way in AI adoption right now, small firms that integrate AI tools into their tech stack can achieve significant cost efficiencies, supporting them to remain competitive and to thrive in an increasingly technology-driven marketplace.”

Client expectations driving change
Client demand is accelerating adoption, with 10% already requesting or requiring their accountancy firms to use GenAI tools. Other client-requested technologies include:

•    Cloud computing (43%)
•    Security (33%)
•    Application program interfaces (18%)

Thomson Reuters Tax Firm Technology Report, published in winter 2024, surveyed 260 tax and accounting professionals, highlighting the industry’s rapid shift toward GenAI adoption.

*’Large firms’ have more than 30 employees, ‘medium-sized firms’ have 4-29 employees, and ‘small firms’ have 3 or fewer employees.