Transforming Tax Professionals: The Rise of Agentic AI in Accounting

Highlights

• Elevating Roles: Agentic AI autonomously executes multi-step workflows, turning accountants from compliance processors into strategic advisors.
• Automation Redefined: Purpose-built solutions enhance tax compliance, research, and planning while ensuring professional judgment and accuracy.
• Future Leaders: Firms embracing agentic AI today position themselves as tomorrow’s leaders in advisory services, gaining a competitive edge.

The Evolution of AI in Accounting: From Generative to Agentic

• Shift in Focus: Moving from compliance-based work to client-centric advisory relationships.
• Practical Applications: Exploring how agentic AI revolutionizes tax and accounting practices.
• Future Directions: Understanding the implications of agentic AI for the accounting industry’s future.

Transforming Tax Professionals: The Rise of Agentic AI

In today’s fast-evolving financial landscape, the role of tax professionals is undergoing a significant transformation. Once seen as mere compliance processors, accountants are now stepping into the role of year-round strategic advisors, thanks to the rise of agentic AI. This innovative technology is not just automating workflows; it’s unlocking premium advisory opportunities that enhance both client value and firm profitability.

The Evolution of Accounting: From Compliance to Strategy

Historically, the tax profession has been characterized by a measured approach to change. With compliance work prioritized, professionals often found themselves confined to annual tax season duties. However, the advent of agentic AI is reshaping the fabric of accounting, redefining the daily duties and value propositions of tax professionals.

Understanding the evolution from traditional automation to agentic AI is about more than recognizing new tools; it’s about embracing a paradigm shift in how accountants can deliver value.

Understanding Agentic AI: A New Frontier

The Progression from Generative AI

Generative AI has already made waves in the accounting world, enabling tasks such as:

• Research Assistance: Summarizing tax code changes and identifying changes in legislation.
• Document Drafting: Creating first drafts of memos or client communications.
• Data Analysis: Highlighting patterns or anomalies in financial data.

While valuable, generative AI primarily responds to user prompts, which means accountants still need to steer the workflow.

Introducing Agentic AI

Agentic AI takes the benefits of generative AI and enhances them by autonomously executing multi-step workflows. It doesn’t just automate routine tasks; it fundamentally alters how work is done. By operating within a predefined framework, agentic AI can:

• Make Decisions: Execute tasks based on predetermined goals and adapt to changes.
• Self-improve: Learn from interactions to refine future outputs without needing constant oversight.

This autonomy allows tax professionals to focus less on compliance tasks and more on strategic advisory services.

Practical Applications of Agentic AI in Accounting

The implications of agentic AI are transformative. Here are some of the key applications:

1. Tax Compliance and Reporting Automation

Agentic AI can monitor tax law changes and proactively identify compliance risks, enabling:

• Continuous data analysis and autonomously gathering relevant transaction information.
• Identifying discrepancies and errors without manual review.

For instance, solutions like Thomson Reuters Ready to Review utilize agentic capabilities to review tax returns intelligently, allowing accountants to dedicate their expertise where it really matters.

2. Strategic Tax Planning and Advisory

Rather than merely filing tax returns, agentic AI can analyze a client’s financial data throughout the year, surfacing:

• Opportunities for tax savings.
• Alerts to potential regulatory risks or strategic decisions based on life events.

Tools such as Thomson Reuters Ready to Advise shift the accountant-client relationship from reactive to proactive, positioning accountants as valuable strategic partners.

3. Research and Complex Workflow Automation

Agentic AI can significantly reduce the time spent on research by autonomously navigating knowledge bases. This leads to:

• Quick answers to complex tax questions.
• Enhanced efficiency, transforming hours of research into minutes.

Thomson Reuters CoCounsel Tax showcases these research capabilities, allowing professionals to access important information rapidly while ensuring accuracy and context.

Purpose-Built Solutions for Tax Professionals

For firms aiming to harness the power of agentic AI, purpose-built solutions are essential. Thomson Reuters offers an integrated ecosystem designed specifically for tax and accounting professionals, featuring:

• CoCounsel: Automating workflows and executing tasks independently.
• Ready to Review & Ready to Advise: Complementing compliance automation with strategic advisory support.

These tools not only manage rigorous workloads but also enable professionals to elevate their services to more sophisticated advisory roles.

The Future of Accounting is Agentic AI

As client expectations shift towards year-round, strategic guidance, and competitors embrace AI-powered workflows, adopting agentic AI is no longer an option but a necessity. Firms that integrate this technology today will carve out their space as tomorrow’s advisory leaders, committing to exceptional client value and sustainable profitability.

The pressing question is not whether agentic AI will redefine the accounting profession but rather how quickly firms can adapt and strategically implement this groundbreaking technology to secure a competitive edge.

Embrace the future. Understand the practical applications and benefits of agentic AI within your firm, and discover how Thomson Reuters’ suite of AI-powered solutions can transform your workflows from compliance tasks to advisory services. Your journey into the world of strategic advisory begins now!