AI in Accounting Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 1.56 Billion |
| Market Size (2029) | USD 6.62 Billion |
| CAGR (2024 - 2029) | 33.50 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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AI in Accounting Market Analysis
The AI In Accounting Market size is estimated at USD 1.56 billion in 2024, and is expected to reach USD 6.62 billion by 2029, growing at a CAGR of 33.5% during the forecast period (2024-2029).
To increase precision, effectiveness, and decision-making in accounting, artificial intelligence (AI) is increasingly being employed. Accounting professionals may now concentrate on more strategic responsibilities by automating repetitive processes like data input, bookkeeping, and financial statement preparation using AI algorithms.
- The accounting industry has shifted its emphasis from manual entry with paper and pencil to automated entry with software due to substantial advancements in AI over the years. AI covers all essential facets of accounting procedures. Financial institutions' operations are evolving while becoming more efficient due to their capacity to lessen the laborious, demanding character of the accounting profession.
- Financial professionals are adopting AI to assist in business decision-making based on accounting data insights, such as transactional data and client demographics, in real time. Financial professionals employ AI because of its capacity to assess massive amounts of data, find abnormalities in the system, and streamline operations while ensuring speed and scalability.
- By incorporating AI, businesses can forecast cash flows, identify fraud, and foresee bankruptcies, which enables accountants to assist customers before problems become serious and change spending accordingly. Additionally, it will likely allow accountants to expand beyond conventional financial planning and increasingly incorporate other crucial business areas into their predictive consulting.
- AI can also help with regulatory compliance, risk management, and auditing by offering real-time monitoring and financial data analysis. Accounting is changing due to AI since it is becoming more strategic, precise, and efficient. Future developments in artificial intelligence (AI) in accounting are anticipated to be much more creative.
- The demand for specialized knowledge and abilities is one of the main obstacles. Accountants must develop their data analytics and machine learning skills to profit from AI. The possibility of job displacement is another issue.
- The entire fintech industry experienced favorable market growth as a result of COVID-19. The need for AI-based accounting software surged as governments and authorities encouraged using digital payments in response to the pandemic. Digital payments became more widespread due to the work-from-home trend, telemedicine, teleconferencing, online food delivery, and telebanking.
AI in Accounting Market Trends
Natural Language Processing to drive the Growth of the Market
- A branch of artificial intelligence aims to make it possible for people and machines to communicate. It addresses the fundamental issues brought about by confusing and vague human communication. Insights from end-user industry papers are frequently extracted using NLP software. Since the accounting industry often deals with text-based documents like management evaluations, financial performance reports, domain standards, rules, and supporting documentation, NLP technology can assist businesses in extracting insights, inferences, and methodologies to advance their understanding and reduce potential risks.
- Furthermore, it allows businesses to automate various accounting operations, including data entry, generating financial reports, invoicing, and receipts, removing time sinks, and reducing expenses.
- With NLP, a vital element of the AI field, enterprises may automate various accounting processes, including data entry, financial reporting, bills, and receipts. For instance, organizations worldwide use Botkeeper, a bookkeeping solution from Botkeeper Inc., to automate accounting activities.
- Data input, financial reports, invoices, and receipts are just a few accounting operations businesses may automate with natural language processing, a crucial component of the AI field. For instance, organizations worldwide can automate accounting processes with the help of Botkeeper (a bookkeeping solution from Botkeeper Inc.). For its 1,000 clients, the business says that more than 1.2 million working hours have been automated. The company estimates that automating 240 working hours might save USD 9,240.
- The majority of the top four accounting and law firms have already implemented robotic process automation and AI-driven NLP to automate auditing procedures that would otherwise take the companies several weeks to complete.
North America Accounts to Hold Major Market Share
- In the accounting sector, North America represents a sizable market for AI and machine learning technology, with the US being a key factor in boosting regional demand. Due to its leadership in AI and machine learning technologies, the nation is anticipated to dominate the worldwide market throughout the forecast period.
- Additionally, most market sellers are in the United States, giving the area a competitive advantage in innovation. The US government is encouraging the use of innovative technologies like artificial intelligence, machine learning, and natural language processing, which presents several opportunities for market participants to increase their market share in the area.
- The US Department of Labor identified accountant and auditor positions as among the most newly created positions, and it projects that the sector will increase at a 10% annual pace from 2016 to 2026. The preference of accountants for AI further accelerates the market's expansion.
- AI technology integration enables businesses to carry out several functions, including fraud detection, bankruptcy prediction, and cash flow forecasting. Because of this, accountants may help customers respond to financial difficulties in a proactive manner by modifying their spending before the situation deteriorates. Furthermore, it broadens the purview of predictive counseling beyond conventional financial planning and enables the incorporation of other crucial business sectors.
AI in Accounting Industry Overview
Artificial intelligence in the accounting market is highly fragmented and comprises multiple influential players competing for greater market share. These main firms, which have significant market shares, are concentrating on growing their clientele internationally. To improve their market shares and profitability, they are also offering fresh, creative ideas and engaging in business transactions and mergers. Google Inc., Microsoft Corp., Xero, Intuit, etc. are important participants.
In March 2023, Microsoft Corporation announced the new A.I. features, dubbed Copilot. Word, PowerPoint, and Excel, among the company's most popular business tools, will all support Copilot technology, which is based on a large language model, or LLM, a class of artificial intelligence software.
In February 2023, Intuit Inc. introduced artificial intelligence (AI) enhancements for its virtual export platform to drive highly personalized experiences, connect consumers with experts, and reduce tax filing time with its portfolio of Turbo Tax Alive goods. Intuit, a pioneer in artificial intelligence (AI) and a market leader with over 100 million small business and consumer clients worldwide, uses AI technologies like machine learning, natural language processing, and knowledge engineering to seamlessly combine virtual and real human experts on the platform that powers its Turbo Tax Live and Quick Books Live products and services.
AI in Accounting Market Leaders
Xero Limited
Intuit Inc.
Sage Group
SAP SE
Epicor Software Corporation
*Disclaimer: Major Players sorted in no particular order
AI in Accounting Market News
- April 2023: PwC US will invest USD 1 billion over the following three years to improve the job that its tax accountants, auditors, and consultants do for clients by enhancing their use of artificial intelligence. This initiative, which involves cooperation with Microsoft Corp., intends to reduce busywork so personnel can concentrate on activities that require expert eyes. PwC will employ Microsoft products, such as the Azure OpenAI Service and OpenAI's GPT-4/ChatGPT. For its clients in the insurance, aviation, and healthcare sectors, the business already makes use of Microsoft's Azure OpenAI Service.
- April 2023: Intuit Inc has released Email Content Generator (beta), which uses GPT AI technology to give users the ability to produce marketing email messages based on industry, marketing intent, and brand voice. The latest release of Mailchimp's AI-powered features, including Email Content Generator, is the next step in the company's mission to revolutionize email marketing for small and medium-sized businesses.
AI in Accounting Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Buyers
4.2.2 Bargaining Power of Suppliers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Natural language processing technology to drive the market growth
5.2 Market Challenges
5.2.1 Lack of specialized skills and expertise
5.3 Technology Snapshot
5.3.1 Natural Language Processing (NLP)
5.3.2 Machine Learning and Deep Learning
5.4 Assessment of Impact of COVID-19 on the Industry
6. AI IN ACCOUNTING APPLICATION/USE-CASES
6.1 Fraud and Risk Management
6.2 Invoice Classification and Approvals
6.3 Reporting
6.4 Automated Bookkeeping
6.5 Other Applications
7. MARKET SEGMENTATION
7.1 Component
7.1.1 Software
7.1.2 Service
7.2 Deployment
7.2.1 On-Premise
7.2.2 Cloud
7.3 Organization Size
7.3.1 Small to Medium Sized Enterprise (SMEs)
7.3.2 Large Enterprise
7.4 Geography
7.4.1 North America
7.4.2 Europe
7.4.3 Asia-Pacific
7.4.4 Rest of the World
8. COMPETITIVE LANDSCAPE
8.1 Company Profiles
8.1.1 Xero Limited
8.1.2 Intuit Inc.
8.1.3 Sage Group
8.1.4 SAP SE
8.1.5 Epicor Software Corporation
8.1.6 Oracle Corporation (Netsuite)
8.1.7 Zoho Corporation
8.1.8 Google LLC
8.1.9 Microsoft Corporation
8.1.10 IBM Corporation
8.1.11 SMACC GmbH
8.1.12 Botkeeper Inc.
8.1.13 VIC.ai Inc.
- *List Not Exhaustive
9. INVESTMENT ANALYSIS
10. FUTURE OF THE MARKET
AI in Accounting Industry Segmentation
Leveraging AI technology is proving not just worthwhile but also transformative for enterprises in the accounting industry. Disruptive technology applications, like machine learning (ML) and predictive analytics, are aiding industry insiders to enhance their operational efficiency and cut costs in accounting activities. However, AI's impact on the industry extends beyond cost savings, offering several potential benefits. The study includes various trends that are driving the inclusion of AI in the processes of accounting. Companies incorporating AI in their accounting software and AI-enabling companies are included in the study.
The artificial intelligence in the accounting market is segmented by Component (Software, Service), Deployment (On-Premise, Cloud), Organization Size (SMEs, Large Enterprises), and Geography (North America, Europe, Asia-Pacific, and the rest of the world). The market sizes and forecasts are provided in terms of value (USD billion) for all the above segments.
| Component | |
| Software | |
| Service |
| Deployment | |
| On-Premise | |
| Cloud |
| Organization Size | |
| Small to Medium Sized Enterprise (SMEs) | |
| Large Enterprise |
| Geography | |
| North America | |
| Europe | |
| Asia-Pacific | |
| Rest of the World |
AI in Accounting Market Research FAQs
How big is the AI In Accounting Market?
The AI In Accounting Market size is expected to reach USD 1.56 billion in 2024 and grow at a CAGR of 33.5% to reach USD 6.62 billion by 2029.
What is the current AI In Accounting Market size?
In 2024, the AI In Accounting Market size is expected to reach USD 1.56 billion.
Who are the key players in AI In Accounting Market?
Xero Limited, Intuit Inc., Sage Group, SAP SE and Epicor Software Corporation are the major companies operating in the AI In Accounting Market.
Which is the fastest growing region in AI In Accounting Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in AI In Accounting Market?
In 2024, the North America accounts for the largest market share in AI In Accounting Market.
What years does this AI In Accounting Market cover, and what was the market size in 2023?
In 2023, the AI In Accounting Market size was estimated at USD 1.17 billion. The report covers the AI In Accounting Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the AI In Accounting Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the main challenges in adopting AI Technology in Accounting?
Key challenges faced by AI in Accounting: a) Data privacy concerns b) High initial investment costs c) Need for professionals to adapt to new technologies and methodologies
AI in Accounting Industry Report
The Global Artificial Intelligence (AI) for Accounting Market is witnessing remarkable growth, fueled by the surge in demand for automation and digitization. With technologies like Natural Language Processing (NLP) at the forefront, the sector is undergoing a transformation, making accounting practices more efficient and reducing error risks. NLP excels in tasks such as invoice classification and fraud detection, enhancing decision-making processes. The services segment is rapidly expanding, due to the deployment of AI-based solutions, aiming to automate repetitive tasks and boost accuracy. North America leads in adoption, with a competitive landscape driven by innovation and strategic partnerships among key players. This evolution in AI for accounting is poised to redefine the industry, allowing professionals to concentrate on strategic roles. For detailed insights, Mordor Intelligence™ offers a comprehensive analysis, including market share, size, revenue growth, and forecasts, available as a free report PDF download, showcasing the potential and trajectory of AI in accounting.
