Artificial Intelligence in Accounting Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Artificial Intelligence in Accounting Market is segmented by Deployment (On-Premise, Cloud), Component (Solution, Service), Technology (Natural Language Processing (NLP), Machine Learning & Deep Learning), Organization Size (SMEs, Larg Enterprises), Application (Fraud & Risk Management, Invoice Classification & Approvals, Reporting, Automated Bookkeeping, and Others), and Geography.

AI in Accounting Market Snapshot

AI in Accounting Market
Study Period: 2018- 2026
Base Year: 2020
Fastest Growing Market: Asia Pacific
Largest Market: North America
CAGR: 30 %

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Market Overview

  • The market for Artificial Intelligence in Accounting Market is expected to register a CAGR of 30% over the forecast period (2021 - 2026). In the year 2020, due to COVID-19 the entire Fintech sector had witnessed a positive growth in the market. The AI-based accounting software demand increased as governments and authorities across the globe are encouraging the use of digital payments in response to the pandemic. The work-from-home scenario increased the digital payments more popular, as is the adoption of telemedicine, teleconferencing, online food delivery, and telebanking.
  • Over the years, there have been significant improvements which have been made in Artificial Intelligence with respect to the accounting profession that has changed its focus from paper and pencil entry to software-based entry. AI is applicable to all major aspects of accounting operations added with its ability to reduce the tedious, rigorous nature of the accounting profession is changing how financial institutions operate while delivering efficiencies.
  • As with the AI ability to analyze large quantities of data, detect anomalies in the system, optimize workflows while ensuring speed and scalability is driving financial professionals to adopt AI to assist with business decision making based on insights driven from accounting data such as transactional data, customer demographics in real-time.
  • By Integrating AI, the companies are able to perform cash flow forecasting, predict bankruptcy, detect frauds thereby allowing the accountants to help client respond against financial challenges before they become acute and adjust the expenditure accordingly, furthermore it helps accountants to broaden their predictive consultancy beyond traditional financial planning and further incorporate other critical areas of business.
  • For instance, research conducted by MIT Boston found that 85% of people around the world believe that Artificial Intelligence will enhance their competitive advantage. also according to a survey published by FreeAgent in April 2020, highlights that 81% of accountants believe that levering AI would save up as much as 10 working hours a week by helping them automate the redundant tasks and would potentially unlock up to 68,163 pounds of additional revenue annually.
  • The study also stated that accountants around the world consider AI for dealing with accounting tasks such as accurate auto-reconciling of data in clients account (50%), dealing with HMRC ( 44%), preventing clients entering incorrect information (45%), added it 90% of larger firms employing over 300 people showed interest in using AI as compared to 76% in SMEs.
  • Furthermore, AI-enabled system also supports accountant in auditing and compliance as it constantly monitors documents against laws, rules, and flag the audits with issues. with frauds cost costing companies billions of dollars each year, machine learning algorithms quickly sift through an enormous amount of data to detect potential frauds which may otherwise be foreseen by humans, For instance, the IL&FS fraud case that cost INR 91,000 crore were the result of serious audit irregularities in IL&FS accounts.
  • Owing to these instances companies are embracing and implementing AI into their streamline business operations with accounting on top of their list as it delivers increased productivity, accuracy, and reduced cost, thereby driving the growth of the market.

Scope of the Report

Technological advances such as Artificial Intelligence are poised to transform the finance and accounting industries owing to its ability to eliminate tedious task that helps financial staff to prioritize higher impact responsibilities. The reports cover the emerging trends in Artificial Intelligence in Accounts Market segmented by deployment, component, technology, organization size, applications across different regions studied. ​

Deployment
On-Precise
Cloud
Component
Solution
Service
Technology
Natural Language Processing (NLP)
Machine Learning & Deep Learning
Organization Size
Small to Medium Sized Enterprise (SMEs)
Large Enterprise
Application
Fraud & Risk Management
Invoice Classification & Approvals
Reporting
Automated Bookkeeping
Other Applications
Geography
North America
United States
Canada
Europe
Germany
United Kingdom
France
Rest of Europe
Asia-Pacific
India
China
Japan
Rest of Asia-Pacific
Latin America
Brazil
Argentina
Rest of Latin America
Middle East and Africa
United Arab Emirates
Saudi Arabia
Rest of Middle East and Africa

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Key Market Trends

Natural Language Processing to drive the Growth of the Market

  • Natural Language processing is considered as part of the AI domain that is focused on communication between humans and computers evidently they address the inherent problems that humans communications turn ambiguous and imprecise. Its applications are often deployed to mine end-user industry documents to obtain insights.
  • As the accounting domain frequently deal with textual documents including management assessment, financial performance, domain standards, regulations, compliance, and evidence about the same among others, with NLP companies would be able to obtain insights, inference, methodologies to advance its knowledge and prevent potential risks
  • Also, it helps enterprises to automate accounting such as tasks such as data entry, processing financial reports, invoices, and receipts among others, and eliminate the time sinks thereby saving business costs.
  • For instance, Botkeeper, a bookkeeping program developed by Botkeeper Inc helps organizations across the world to automate accounting tasks, the company states that Botkeeper has automated more than 1.2 million of working hours for its 1,000 clients further on which study states that employee that 240 hours due to automation would return USD 9240 in value to the company such monetary and timely benefits is driving the growth of the market.
  • Moreover, most of the Big 4 accounting firms along with legal firms have already deployed AI-driven NLP with robotic process automation to automate auditing tasks which otherwise turn cost the firms several weeks of work.
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North America Accounts to Hold Major Market Share

  • North America is one of the major markets for AI in the accounting market, owing to its dominance in AI and machine learning technologies. Most of the major market vendors in the studied market are US-based, which also gives the region an innovative advantage. Additionally, the regional governments are increasingly motivating the adoption of AI, ML, and NLP technologies, which is also developing space for the studied market vendors to expand their presence in the region.
  • According to the Bureau of Lab Statistics, the United States Department of Labor listed the Accountant and auditor occupation under the list of most new jobs to anticipate a growth rate of 10% from 2016 to 2026, at this growth rate added with preference accountants towards AI leverages the growth of the market.
  • Furthermore, the increasing number of accounting frauds added with online transactions and multi-device accessibility offered by vendors in the region is driving the growth of the market. The vendors in the region are strategically collaborating with each other either by partnership or acquisitions to leverage their expertise and capture the market share.
  • For instance, In February 2020, Intuit Inc, the developer of AI-driven platforms QuickBook, Mint, Turbox based in the US announced the acquisition of Credit Karma, a consumer technology platform developer with over 100 million members in Canada, US, and the UK. This acquisition has brought two technology players together to focus on a shared goal that is to capitalize on the accounting sector of the region by helping the company to solve its financial problems.
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Competitive Landscape

Artificial Intelligence in the Accounting market is highly competitive and consists of several major players who are trying to gain larger shares. These major players with prominent shares in the market are focusing on expanding their customer base across foreign countries and are also providing new innovative solutions, along with deals and mergers to increase their market shares and profitability. Key players include Google Inc., Microsoft Corporation, Xero, Intuit, etc. Recent developments in the market include

  • July 2021 - Xero Analytics Plus is part of a new suite of planning and forecasting tools powered by artificial intelligence, designed to help businesses and advisers confidently plan for the future.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Value Chain Analysis

    5. 4.5 Porters Five Force Analysis

      1. 4.5.1 Threat of New Entrants

      2. 4.5.2 Bargaining Power of Buyers/Consumers

      3. 4.5.3 Bargaining Power of Suppliers

      4. 4.5.4 Threat of Substitute Products

      5. 4.5.5 Intensity of Competitive Rivalry

    6. 4.6 Assessment of Impact of COVID-19 on the Industry

  5. 5. MARKET SEGMENTATION

    1. 5.1 Deployment

      1. 5.1.1 On-Precise

      2. 5.1.2 Cloud

    2. 5.2 Component

      1. 5.2.1 Solution

      2. 5.2.2 Service

    3. 5.3 Technology

      1. 5.3.1 Natural Language Processing (NLP)

      2. 5.3.2 Machine Learning & Deep Learning

    4. 5.4 Organization Size

      1. 5.4.1 Small to Medium Sized Enterprise (SMEs)

      2. 5.4.2 Large Enterprise

    5. 5.5 Application

      1. 5.5.1 Fraud & Risk Management

      2. 5.5.2 Invoice Classification & Approvals

      3. 5.5.3 Reporting

      4. 5.5.4 Automated Bookkeeping

      5. 5.5.5 Other Applications

    6. 5.6 Geography

      1. 5.6.1 North America

        1. 5.6.1.1 United States

        2. 5.6.1.2 Canada

      2. 5.6.2 Europe

        1. 5.6.2.1 Germany

        2. 5.6.2.2 United Kingdom

        3. 5.6.2.3 France

        4. 5.6.2.4 Rest of Europe

      3. 5.6.3 Asia-Pacific

        1. 5.6.3.1 India

        2. 5.6.3.2 China

        3. 5.6.3.3 Japan

        4. 5.6.3.4 Rest of Asia-Pacific

      4. 5.6.4 Latin America

        1. 5.6.4.1 Brazil

        2. 5.6.4.2 Argentina

        3. 5.6.4.3 Rest of Latin America

      5. 5.6.5 Middle East and Africa

        1. 5.6.5.1 United Arab Emirates

        2. 5.6.5.2 Saudi Arabia

        3. 5.6.5.3 Rest of Middle East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Key Vendor Profiles

      1. 6.1.1 IBM Corporation

      2. 6.1.2 Google LLC

      3. 6.1.3 Microsoft Corporation

      4. 6.1.4 Xero

      5. 6.1.5 Intuit Inc.

      6. 6.1.6 Amazon Web Services

      7. 6.1.7 Deloitte Touche Tohmatsu Limited

      8. 6.1.8 OSP Labs

      9. 6.1.9 UiPath

      10. 6.1.10 Yaypay Inc.

      11. 6.1.11 SMACC

      12. 6.1.12 PricewaterhouseCoopers (PwC)

  7. 7. INVESTMENT ANALYSIS

  8. 8. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability

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Frequently Asked Questions

The AI in Accounting Market market is studied from 2018 - 2026.

The AI in Accounting Market is growing at a CAGR of 30% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

North America holds highest share in 2020.

IBM Corporation, Google LLC, Microsoft Corporation, Xero, Intuit Inc. are the major companies operating in AI in Accounting Market .

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