AI revolution: Sage predicts major 2030 accounting changes

Sage has released a new study forecasting significant changes in the accounting industry by 2030, based on findings from their commissioned Forrester Consulting study.

The research, which surveyed 2,339 finance leaders from small and medium-sized businesses (SMBs) worldwide, provides insights into how artificial intelligence (AI) will transform accounting practices.

"For centuries, the accounting industry has relied on processes that provide a point-in-time snapshot of financial health. AI is ushering in a new era of continuous accounting, continuous assurance, and continuous insights," said Aaron Harris, Chief Technology Officer at Sage.

"This shift will empower businesses with unparalleled operational efficiency, improved compliance, robust risk management, and more accurate financial forecasting."

The study identified five key predictions for the future landscape of AI-powered accounting. The first prediction suggests that ethical AI leadership will become a priority, with over 80% of SMBs adopting robust AI ethics policies by 2030. This shift underscores the expectation that businesses will not only adopt ethical AI policies but will also emerge as leaders in ethical AI assurance.

A second prediction anticipates a comprehensive overhaul of risk management practices. According to the study, over 90% of SMBs globally will leverage AI for continuous monitoring and anomaly detection, which is expected to reduce financial errors and fraud by more than 95%. This represents a significant reinvention in traditional risk management approaches.

The third prediction sees the end of the traditional monthly close, as real-time data is expected to replace these period-end processes. Seventy-five percent of SMBs are predicted to transition to dynamic continuous accounting practices, facilitated by the success of continuous assurance. AI technologies will play a crucial role in enabling real-time reconciliation and other assurance capabilities, making such transitions feasible.

Real-time data integration in financial decision-making forms the fourth prediction. Over 70% of SMBs are expected to utilise real-time data to inform their financial decisions, empowering them to drive growth and innovation and enhance their competitiveness in the market.

The fifth and final prediction highlights the creation of new roles and opportunities for accountants. AI is expected to automate routine tasks, allowing accountants to concentrate on strategic thinking and providing essential business insights. This transition is anticipated to create new opportunities for accountants to leverage their expertise in innovative ways, effectively driving business strategy and growth.

Alistair Brisbourne, Head of Technology Research, Policy & Insights at ACCA, commented on the study's findings. "While AI will ultimately be used to monitor all business activity and discover opportunities and risk in real-time, it will still play a supporting role in the industry, with outcomes and decisions always residing with a human," Brisbourne said. "There is an abiding sense of optimism around the potential that AI presents in terms of enhancing complex accounting tasks; and that potential is coming into sharper focus with more practical experience."

Sage's report also emphasises the importance of strategic and collaborative approaches to managing ethical challenges associated with AI integration. "By embracing AI technologies thoughtfully and strategically, the accounting profession can enhance capabilities, deliver greater value to clients, and play an even more crucial role in guiding business decision-making," Brisbourne added.

The Forrester study suggests that the adoption of AI in accounting significantly enhances operational efficiency, financial accuracy, and strategic decision-making across SMBs. According to the research, SMBs utilising AI-driven accounting tools should see substantial improvements in data processing speeds and accuracy, leading to better compliance, risk management, and financial forecasting.