AI Tsunami: Lifeline or Liability for Accountants?
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Artificial intelligence (AI) is no longer a future consideration for accountants, it is already reshaping the profession. What was once described as a distant disruptor has arrived and is now influencing how firms operate, how clients expect services to be delivered, and how global networks structure their workforces.
The reality is that AI is not a passing trend. It is here to stay, and the profession is dividing into two distinct camps. On one side are those who are integrating AI into their practices, carefully and strategically improving efficiency, developing new services, and finding ways to compete with larger firms. On the other side are those adopting AI tools without sufficient checks and controls, exposing themselves to risks that could have significant professional consequences.
Lessons from Other Professions
Accountants can learn from what has already happened in law. Several cases globally have involved lawyers who submitted AI-generated case law that turned out not to exist. The fallout was serious: Sanctions, fines, and reputational damage. Judges described this behaviour as “irresponsible and unprofessional.”
For accountants, the risks are similar. A tax computation, financial report, or SARS submission produced with AI may look accurate, but if unchecked errors slip through, the responsibility does not rest with the software. It remains with the accountant who signs off.
How the Big Firms Are Responding
The scale of change becomes clearer when looking at the largest firms. The Big Four have openly acknowledged that they are rethinking workforce strategies. Graduate recruitment, once central to their operating model, is being reduced because many entry-level tasks can now be performed faster and more accurately by machines.
Tasks such as reconciliations, fraud detection, and forecasting (which previously required days of manual effort) can now be completed in minutes using AI-driven systems. Even drafting correspondence, proposals, or advisory notes can be partly automated.
For smaller practices, the rise of AI is both a challenge and an opportunity. The challenge is that clients now expect the same speed and efficiency they see from larger, AI-enabled firms. The opportunity is that many of these tools are cloud-based, affordable, and easy to adopt, thus giving small practices access to technology that once required the budget and infrastructure of a global firm
Why Smaller Firms May Hold an Advantage
While large firms can roll out AI across big teams and complex systems, smaller practices often have the advantage of speed. Without layers of bureaucracy or outdated systems, they can adopt cloud-based tools quickly, thereby cutting admin, adding new services, and positioning themselves as modern, tech-enabled advisors.
For South African Chartered Business Accountants in Practice (CBAP), this can mean:
Freeing up time spent on reconciliations, payroll, and VAT submissions.
Becoming more attractive to younger professionals who expect digital tools in the workplace.
Expanding into advisory services such as forecasting, business modelling, and scenario planning. These services command higher fees than compliance alone.
However, agility does not remove the need for caution. Without strong professional oversight, AI tools can create risks that may undermine the very advantages they bring.
Five AI Red Flags for Accountants
Before integrating AI into daily practice, accountants should consider the following warning signs:
Overconfidence in outputs – AI can produce polished results that are factually incorrect. Every figure, statement, and citation must be checked, rechecked, and checked again.
Data storage concerns – If client data is stored outside of POPIA-compliant systems by the AI tool being utilised, firms risk breaching regulations.
Absence of human review – Sending out AI-generated work without professional oversight falls short of due care.
Bias in algorithms – AI is trained on data that may be incomplete or unrepresentative, creating the risk of skewed recommendations.
Overpromising to clients – Presenting AI as flawless or “decision-making” is risky. It should be framed as an efficiency tool, not a replacement for professional judgment.
Balancing Efficiency with Responsibility
The legal profession has already demonstrated the risks of over-reliance on AI. For accountants, the potential consequences are similar: Reputational damage, regulatory penalties, or even the loss of a license. Clients, regulators and your professional accounting organisation will not accept “the AI made a mistake” as a defence.
AI can make you faster and more competitive, but important is to know that it raises the bar for accountability. Yes, it boosts productivity, but it demands tighter controls. At the end of the day, the responsibility still sits squarely on your shoulders.
The Ethical Dimension
AI isn’t just about efficiency, it’s about trust. Yes, it can crunch data fast, but it also inherits the flaws of the data it learns from. That means blind spots, biases, and half-answers.
And let’s be real: Too much AI risks stripping away the human touch that makes clients feel safe. Accounting has never just been about numbers, it’s about judgment, integrity, and the reassurance that someone qualified is watching their back.
Clients want speed and affordability, but not at the cost of accountability. The value of a trusted accountant isn’t just in the technical output, it’s in the confidence that their affairs are handled with care, context, and responsibility.
Practical First Steps
For small practices considering AI adoption, a phased and controlled approach is best:
Start with low-risk, repetitive tasks such as reconciliations, data entry, or email drafting.
Establish clear review processes to ensure professional oversight before outputs are sent to clients.
Assess each tool’s compliance with POPIA and other relevant regulations.
Invest in training, so both partners and staff understand the limits as well as the benefits of AI tools.
Handled this way, AI becomes an enabler rather than a threat.
The Way Forward
AI is no longer optional for accountants. Clients will increasingly expect the efficiencies and insights it can provide. However, adoption must be guided by professional responsibility, regulatory compliance, and ethical awareness.
The key is balance: use AI to reduce administrative pressure, free up time for advisory work, and remain competitive, but always retain final accountability and human oversight.
For South African accountants, this balance may also open the door to new opportunities. With affordable tools, smaller firms can compete with larger players, attract new clients, and expand into higher-value services.
Conclusion
Artificial intelligence is not the end of accounting. But it does signal the end of business as usual. The profession is changing rapidly, and those who adapt responsibly will be best placed to grow.
The decision every accountant now faces is not whether AI will impact their work (it already has) but how to integrate it in a way that strengthens rather than undermines their practice.
👉 Join CIBA and learn how to use AI with confidence, save hours on admin, safeguard your practice, and position yourself to charge the fees you deserve.
