Agentic AI set to transform how CPAs work and boost productivity

Agentic AI Set to Transform How CPAs Work

Less than three years after ChatGPT's launch, a new generation of artificial intelligence called agentic AI is emerging. This technology could significantly change how accountants perform their tasks.

Agentic AI differs from previous AI tools because it can act autonomously. It sets complex goals, plans the steps needed to meet those goals, and adapts to changes with minimal human input.

What Makes Agentic AI Different?

While generative AI like ChatGPT depends on users providing detailed prompts, agentic AI uses advanced reasoning and iterative planning to solve complex, multi-step problems on its own. This means it can handle tasks without constant human direction.

Experts predict agentic AI will soon be integrated into many AI applications, freeing accountants to focus more on analysis and strategy instead of routine tasks. It’s like having a team of expert researchers working quickly behind the scenes.

Potential Uses in Accounting

• Automating bookkeeping and report generation as part of client advisory services
• Supporting real-time auditing with improved fraud detection
• Conducting directed research that outperforms general AI tools

How Does Agentic AI Work?

Both generative and agentic AI use algorithms trained on large datasets to predict content and respond to natural language. However, agentic AI adds the ability to learn and adapt more quickly and to make decisions based on context.

For example, agentic AI can independently research recent tax law changes and create client presentations or develop a year’s worth of marketing materials by analyzing strategic documents and prior campaigns.

This AI can also manage interactions on social media and customer platforms without constant human guidance.

The Four-Step Process of Agentic AI

• Perceive: Gather input from various sources like text, audio, or sensors.
• Reason: Analyze data and set goals using large language model (LLM) technology.
• Act: Execute tasks autonomously to complete projects.
• Learn: Improve continuously through feedback and machine learning.

According to reports, agentic AI’s unique ability to operate independently makes it valuable for streamlining workflows. Its effectiveness improves with use and training.

Gradual Integration into Daily Work

Agentic AI won’t announce its presence explicitly. Instead, expect it to be embedded seamlessly into existing accounting software, providing more powerful and user-friendly tools.

Increased access to do-it-yourself automation tools combined with agentic AI will help small firms and finance teams enhance their processes easily.

Adapting to Change

Agentic AI promises to fulfill many of the goals once expected from robotic process automation (RPA) but often missed due to complexity. Think of RPA and generative AI as individual musicians; agentic AI is the full orchestra, coordinating multiple agents working independently yet together.

This technology could help address the shortage of trained CPAs by taking over time-consuming tasks, allowing professionals to focus on higher-value work and even regain personal time.

However, human creativity remains essential. AI excels at following processes and identifying common patterns but does not replace the creative thinking and strategic judgment that accountants provide.

Challenges to Overcome

Adopting agentic AI requires behavioral changes and openness to new technology. One challenge is trust—AI, including agentic AI, can sometimes produce inaccurate results or “hallucinations.”

Accountants may not see how agentic AI reaches its conclusions, which can create skepticism. Careful oversight and understanding where human involvement is critical will remain necessary.

Due diligence when selecting AI vendors is crucial. Firms should know where data is stored, who can access it, and whether privacy regulations like the California Consumer Privacy Act (CCPA) and the EU’s General Data Privacy Regulation (GDPR) are met.

Questions to address include:

• How accurate and functional is the AI product?
• Is the AI fit for the specific accounting tasks it will be used for?
• Does the vendor provide System and Organization Controls (SOC) 1 and SOC 2 reports?

These reports help verify security, data privacy, and reliability—essential factors when integrating AI into financial workflows.

Preparing for the Future

Agentic AI is here to stay, and accountants should prepare to integrate it into their work in the coming years. Learning about this technology, its capabilities, and limitations will be vital.

Getting curious and informed now can help finance professionals make smart decisions about which AI tools to adopt and how to use them effectively.

For those interested in expanding their AI knowledge and skills, resources like Complete AI Training offer courses designed to bridge the gap between AI technology and practical application in finance.