How generative AI is shaping the future of tax and accounting

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Generative AI (GenAI) is quickly becoming a game-changer in the world of tax and accounting, reshaping how these industries operate and thrive.

As highlighted in the 2025 Generative AI in Professional Services Report by Thomson Reuters Institute, the adoption of AI in daily operations is accelerating, with professionals increasingly recognizing its transformative impact.

As we look ahead to 2025, the sentiment among tax and accounting professionals is increasingly positive, with many seeing the potential of GenAI to revolutionize their workflows and bring new opportunities for growth and innovation.

Top priorities for GenAI integration for tax and accounting firms

When it comes to integrating GenAI into their daily operations, tax and accounting professionals have identified several key priorities.

These priorities reflect the need to balance technological advancement with practical business goals and client expectations.

Explore five areas where GenAI is shaping the future of tax and accounting ↓

1. Better efficiency through technology

One of the most significant priorities is achieving better efficiency through the use of technology. GenAI is being leveraged to automate routine and time-consuming tasks such as tax research, tax return preparation, and document summarization.
According to the 2025 Generative AI in Professional Services Report by Thomson Reuters Institute, 71% of respondents at outside tax firms now support the application of AI in daily work, a significant increase from 52% in 2024. This shift indicates a growing recognition of the benefits of AI in enhancing productivity and reducing errors.

2. Looking for growth opportunities

Tax and accounting firms are actively seeking new avenues for growth. GenAI can play a crucial role in this by analyzing market trends, client data, and regulatory changes to identify potential opportunities.
The report highlights that professionals are using AI to expand their client base, offer new services, and enter new markets. By automating data analysis and providing actionable insights, GenAI helps firms make informed decisions and stay competitive.

3. Tackling the talent challenge

Attracting and retaining top talent is a persistent challenge in the tax and accounting industry. GenAI can help address this issue by automating routine tasks, allowing professionals to focus on more complex and engaging work.
This not only improves job satisfaction but also makes firms more attractive to potential employees who are looking for modern, tech-savvy workplaces.

4. Adapting to changing client needs

Client expectations are evolving, and tax and accounting professionals must adapt to meet these needs. GenAI can enhance client service by providing faster and more accurate responses to queries, generating detailed reports, and offering proactive advice.

The report notes that AI is being used for tasks such as tax advisory and compliance, ensuring that firms stay ahead of regulatory changes and provide tailored solutions. This adaptability is crucial in maintaining strong client relationships and ensuring long-term success.

5. Determining price and value

Pricing strategies are a critical aspect of running a successful tax and accounting firm. GenAI can help professionals determine the optimal price for their services by analyzing market data, client value, and cost structures.
While 59% of firms do not currently measure the ROI of AI tools, 46% expect rates to remain unchanged, and 43% anticipate some increase. This suggests that AI is seen as a valuable investment that can enhance the firm’s overall value proposition.

The impact GenAI has on client relationships with tax and accounting firms

The integration of GenAI in tax and accounting firms is not just about improving internal processes; it also has a profound impact on client relationships.

Here are some key ways in which GenAI is influencing these relationships:

Enhanced client service: GenAI can provide faster and more accurate responses to client queries, reducing wait times and improving overall service quality. This responsiveness can lead to higher client satisfaction and loyalty.
Proactive advisory: By analyzing client data and market trends, GenAI can offer proactive advice and insights. This helps clients stay ahead of regulatory changes and make informed financial decisions, strengthening the advisory role of tax and accounting professionals.
Personalized solutions: GenAI can tailor solutions to the unique needs of each client. Whether it’s through customized tax planning or detailed financial reports, the technology ensures that clients receive personalized and relevant information.
Transparency and trust: Clear communication about the use of GenAI and its benefits can build trust with clients. Firms that are transparent about how they use AI to enhance services are more likely to gain client confidence and support.
Cost efficiency: While some firms expect rates to remain unchanged, others anticipate increases due to the value added by AI. However, the overall cost efficiency of AI can lead to more competitive pricing, which can attract new clients and retain existing ones.

The report also highlights a notable disconnect between client expectations and firm policies regarding GenAI usage. Some professionals believe that rates may increase as a result of the technology, while others expect clients to demand lower rates from firms that do not adopt it.

This underscores the importance of clear communication and transparency with clients about the benefits and costs associated with GenAI.

The road ahead: Maximizing GenAI’s potential

As we move forward, the integration of GenAI in tax and accounting firms is poised to bring significant benefits. By focusing on key priorities such as improving efficiency, exploring growth opportunities, managing talent, adapting to client needs, and refining pricing strategies, firms can enhance their productivity and innovation.

The actual impact of GenAI on client relationships is more about transformation and efficiency rather than job displacement, and it is crucial for firms to develop clear policies and provide ongoing training to ensure the ethical and effective use of this technology.

While the journey towards full integration may have its challenges, the potential rewards are undeniable. Embracing GenAI can help tax and accounting professionals stay ahead in a competitive market, providing better service to their clients and unlocking new opportunities for growth.