The State of AI in Accounting 2025: A Deep Dive into Karbon’s Landmark Report
The future of accounting is no longer a distant concept whispered about in conferences; it’s here, and it’s powered by Artificial Intelligence. The new “State of AI in Accounting 2025” report by Karbon provides the most definitive look yet at this transformation. Based on a comprehensive survey of 539 professionals across six continents conducted in late 2024, the report is a mandatory read for anyone in the financial industry.
This post will break down every facet of this crucial report, exploring the nuanced trends, the pressing challenges, and the immense opportunities that AI presents. Let’s dive in.
Key Findings: The 30,000-Foot View
Karbon’s report opens with a powerful summary of the industry’s current climate. If you only read one section, make it this one:
- Confidence is Growing: AI’s capabilities are improving rapidly, and accounting professionals are increasingly looking forward to how it will transform the industry.
- ‘AI Anxiety’ is Declining (But Not for Everyone): While firm leaders are embracing AI, individual contributors and staff in operations, technology, and administration roles remain more hesitant.
- The Perception Gap: Professionals are more optimistic about AI than they were last year, but they mistakenly believe their colleagues are not. This points to a need for more open dialogue.
- Data Security is a Major Concern: The majority of professionals believe AI has a negative effect on their firm’s data security, a sentiment felt most strongly by non-accounting staff.
- Communication is King, But New Uses Emerge: While communication remains the #1 use case for AI, applications in research, financial forecasting, and analysis are gaining momentum.
- Bookkeeping is Ground Zero for Disruption: Most professionals agree that the role of a bookkeeper will be the most affected by AI.
- Training is the Great Differentiator: Firms that invest in AI training save significantly more time and have more enthusiastic teams. Those that don’t are falling behind.
- Leaders are the Champions: Firm leaders feel the most excitement and are uniquely positioned to inspire their teams and advocate for AI adoption.
The Pulse of the Industry: Embracing the Change
AI has officially entered the mainstream of accounting. A staggering 80% of professionals report increased AI functionality in their existing software. The sentiment is overwhelmingly positive, with 85% of respondents reporting they are either excited or at least intrigued by the prospect of AI.
However, a fascinating disconnect exists: only 19% believe their peers share this excitement. The industry is thinking about AI, but it isn’t talking about it enough.
This sentiment varies significantly by role:
- Firm Owners, Leaders, and Partners: A robust 63% are “Excited” about AI, seeing it as an ally for growth. Only 7% remain skeptical or scared, down from 8% in 2024.
- Individual Contributors & Admin Staff: This group is more reserved, with 40% feeling “Excited”. However, optimism is growing, as the “Skeptical or Scared” camp has shrunk from 18% in 2024 to just 11% in 2025.
“To me, AI is a powerful tool that can augment human potential, offering new ways to understand the world, solve complex problems, and improve lives.”
— Manager, 4-10 staff accounting firm, Asia
How Firm Size Influences AI Sentiment
The report reveals that a firm’s size is a major factor in its approach to AI. The most significant year-over-year increases in excitement are coming from firms at both ends of the spectrum and in the middle:
- Small firms (1-3 staff): 26% more excited
- Mid-sized firms (21-50 staff): 29% more excited
- Large firms (201+ staff): 33% more excited
The firms showing the most excitement overall are the mid-tier “make-or-breakers” with 21-50 employees (66% excited). These firms are at a pivotal growth stage where AI-enabled solutions can provide the competitive edge they need.
Interestingly, while skepticism and fear are declining in most segments, large firms with 51-200 employees saw a unique 6% increase in skepticism, likely due to the natural roadblocks of scaling, implementation, and training in a larger organization.
AI in Practice: From Communication to Financial Forecasting
So, how are firms actually using AI today? The report shows a clear shift from simple support tools to more technical, nuanced functions.
Here are the top use cases:
- Communication (63%): Using AI to compose emails and fine-tune writing tone (+4% YoY).
- Task Automation (41%): Automating workflows to free up valuable time (+4% YoY).
- Meeting Transcripts (40%): The breakout star. The use of tools like Fellow, Otter, and Fireflies to transcribe meetings and generate action items saw a massive +12% YoY growth.
- Research (39%): Supporting a broad range of research activities.
- Marketing Content (26%): Generating content to expand go-to-market functions.
- Financial Forecasting & Analysis (13%): Using AI to deliver almost instant financial insights.
“AI is the tool we will use to complete the mundane, boring, repetitive ‘monkey’ tasks, which will in turn allow us to focus on more complex and fulfilling tasks.”
— Manager, 11-20 staff accounting firm, United Kingdom
The AI Paradox: The Chasm Between Interest and Action
The report identifies a critical industry-wide issue: The AI Paradox.
While 85% of respondents are intrigued or excited by AI, a mere 37% are actively investing in AI training for their teams.
This discrepancy is holding firms back. Although the number of firms providing training has grown by 12% since last year, the gap is still immense. It highlights a failure to connect enthusiasm with tangible action, which has significant consequences for efficiency and competitiveness.
The Bigger Picture: AI as a Necessity
The data makes one thing clear: AI is no longer a novelty; it’s a necessity. 56% of professionals believe the value of a firm drops if it doesn’t use AI. The fear of being left behind is real, with 27% concerned that the gap between AI-positive and traditional firms will continue to widen.
The benefits are quantifiable:
- On average, professionals save 56 minutes per day with AI.
- This jumps to 79 minutes per day for advanced users, compared to just 46 minutes per day for beginners.
- Firms that invest in AI training save 22% more time per employee, a difference of 40 hours annually.
This saved time is crucial for tackling the industry’s talent shortage. With 79% of professionals believing graduates are more likely to join a tech-forward firm, AI adoption is now a key factor in attracting and retaining top talent.
Addressing the Concerns: Security, Jobs, and Ethics
Optimism doesn’t erase legitimate concerns.
- Data Security: 70% of professionals are concerned about data security when evaluating AI tools. This concern is highest among operations and technology staff.
- Job Disruption: 57% believe bookkeeping will be the most disrupted function. While job security fears have slightly declined for individual contributors (from 30% to 28%), they have risen for operations and admin staff (from 18% to 20%). This reflects the increasing automation of scheduling, document management, and workflow coordination.
- Human Touch: Fears that AI will diminish client relationships are subsiding, with concern dropping 8% YoY to 47%. Professionals are beginning to see how AI can augment, rather than replace, human interaction.
“If confidentiality and data security was ensured, then our firm would be using AI.”
— Operations/Technology/Administration, 4-10 staff accounting firm, Australia
The Power of Training: Turning Skeptics into Champions
The report’s most actionable insight is the undeniable link between education and enthusiasm. The data is stark:
- Among firms with no AI training, a massive 70% of staff feel skeptical or scared about AI.
- Among firms with AI training available, that number plummets to just 19%.
Furthermore, excitement is highest (44%) at firms actively developing or offering training. The conclusion is inescapable: exposure and education are the most effective antidotes to fear and the primary drivers of successful AI adoption.
Your Roadmap: Navigating the Future of AI
The report concludes not with a warning, but with a roadmap. Firms are not just getting on board; they are excited about the destination.
Top Benefits Professionals are Excited About:
- 85%: Increased speed and efficiency
- 68%: Error reduction
- 65%: Task automation
- 56%: Cost savings
- 53%: Enhanced communications
Here is the report’s recommended three-step plan for taking action today:
- Embrace (Safe) Play: Experiment with tools like ChatGPT, Claude, and Gemini. Get to know how they work on non-critical tasks. Crucially, develop a firm-wide AI policy to ensure responsible and secure usage.
- Encourage Learning: Go beyond general AI content and seek out accounting-specific resources. Understand how AI can be applied directly to your firm’s context.
- Listen to the Experts: Follow and learn from industry leaders like Brian Clare, Jason Staats, Chad Davis, Ashley Francis, Inbal Rodnay, and Kendra Vant, who are actively sharing their strategies.
Economic Implications: The Broader Impact
The Karbon report reveals AI’s transformation of accounting as part of a larger economic shift. When we consider Dario Amodei’s vision in Machines of Loving Grace, where AI could drive sustained 10% GDP growth, the accounting sector’s rapid AI adoption becomes even more significant.
The 56 minutes daily saved per professional, scaled across the millions of accounting professionals globally, represents billions of hours of enhanced productivity annually. This time savings directly contributes to the kind of economic acceleration Amodei envisions, where AI amplifies human capabilities across entire industries.
Connection to AI Safety Research
The data security concerns highlighted in the Karbon report (70% of professionals worried about data security) connect directly to broader AI safety research, including Anthropic’s work on alignment faking and the need for trustworthy AI systems. As accounting firms handle sensitive financial data, the reliability and security of AI systems becomes paramount.
The training paradox identified in the report - where 85% are excited but only 37% invest in training - mirrors broader challenges in AI deployment across industries, emphasizing the critical importance of education and proper implementation.
Conclusion: The Time to Act Was Yesterday
The “State of AI in Accounting 2025” sends a clear and urgent message. The gap between AI-positive firms and traditional firms is growing, and as the technology accelerates, it will become exceedingly difficult for resistors to catch up.
As Kendra Vant, Director at Europa Labs, puts it:
“Don’t believe the hype. And don’t sit on the sidelines. My best advice is to get in and get your hands dirty today so you will be able to sort the hype from the substance tomorrow.”
The revolution is here. It’s time to get your hands dirty.
Related Reading:
- Machines of Loving Grace: Economic Transformation Through AI - Broader economic implications of AI
- AI Coding Assistant Benchmark 2025 - AI performance analysis across industries
- The AI Economic Index - Measuring economic transformation metrics
Key References:
- Karbon. “The State of AI in Accounting 2025.” Based on survey of 539 professionals across six continents, 2024.
- Europa Labs research and industry expert insights
- Cross-industry AI adoption and productivity studies