At a glance
- AI tools automate routine tasks like invoice classification, bank reconciliation and email management, freeing up time for advisory services.
- The IFA’s inaugural AI conference demonstrated practical applications, including systems that could save firms thousands in compliance costs.
- AI will reshape accounting careers but not replace the professional judgment, emotional intelligence and strategic thinking that human accountants bring to complex financial scenarios.
The Institute of Financial Accountants’(IFA) inaugural AI and Emerging Technologies Conference brought together professionals who showcased which AI tools could accelerate traditional accounting workflows while creating new opportunities for practitioners.
“AI is not here to replace accountants,” Jonathan Barber, executive director of the IFA, told the audience. “It’s here to enhance what you do, empowering you to elevate your work beyond repetitive tasks and dig deeper into value-driven services.”
Practical AI tools for accountants
Tashir Patel, co-founder of KPM, shared revolutionary insights into practical AI applications that small practices can implement immediately. He demonstrated how AI can automatically classify invoices, reconcile bank statements, predict financial trends and flag potential errors before they become significant issues.
“Imagine a system that flags discrepancies in seconds, leaving you more time to provide tailored financial advice,” Patel said. He said accounting practices could develop an “ecosystem of mini personal assistants while you maintain an important element of control”.
He cited an example where an audit company saved the firm £50,000 in VAT compliance through using AI. “That’s a big, big saving that’s obviously come through with the use of AI,” he said.
Intelligent email and communication management
Patel said email management tools such as Fixer save time and reduce the administrative burden during peak periods. It prioritises urgent emails, creates draft responses and learns individual communication patterns.
“It prevents important communications from being missed, which is crucial during tax season when client queries flood in,” Patel said.
He also demonstrated how AI-powered report generation helps accountants produce comprehensive financial documents in a fraction of the time it takes to do so manually. In his own business, he said: “We’ve let AI handle the admin so we can focus on growing the business.”
Specialist applications such as Agicap for cash flow forecasting can accurately predict financial trajectories, eliminating hours of manual calculations. However, Patel stressed the need to review and check everything. “They allow accountants to provide clients with more accurate projections and proactive financial guidance,” he said.
“The accountant of the future will be a strategic partner, powered by AI capabilities, not replaced by them.”
Tashir Patel, co-founder, KPM
Prompt engineering
Accountants were encouraged to master prompt engineering, which means asking AI tools precise, contextual questions to boost the relevance and accuracy of results.
Effective prompt engineering relies on being specific. Providing clear context about the situation, defining the desired output format and requesting multiple iterations if the first response isn’t satisfactory lead to better outcomes.
“Effective prompt engineering is the difference between receiving generic information and gaining genuinely useful insights,” said Chris Downing from software company Sage. “It’s a skill every accountant should develop. The better the questions you provide, the better the answers you’ll receive,” he said.
Real-world AI applications
Shane Lukas, Managing Director of AVN Inspiring Accountants, demonstrated practical applications for business planning, client communication and data analysis. Using ChatGPT, Lukas showed how accountants could quickly generate comprehensive business plans, including value propositions, marketing strategies, launch plans and potential risks and opportunities.
“This isn’t about replacing your expertise,” he said. “It’s about creating a solid foundation that you can then customise with your professional knowledge.”
AI tools can help draft tailored client emails, social media content, marketing materials and compliance communication. “The key is maintaining authenticity,” Lukas said. “AI generates the initial draft, but your professional voice and expertise should shape the final message.”
Accountants can use AI to review financial statements, create visual reports, generate insights and predict cash flow trends. They identify patterns and anomalies that might otherwise go unnoticed, allowing you to provide more proactive guidance.
Practical implementation strategies
The advice for small practices wanting to dip their toes in the AI pool was to start small. Experimenting with free tools like ChatGPT and focusing on one area of improvement, such as email management or report generation, would help firms gain the confidence to gradually integrate AI into their operations.
Lukas said trusted platforms with robust data protection, such as integrated solutions like Microsoft Copilot that work within your existing technology stack, minimised disruption. Steps for successful integration included developing clear guidelines for AI usage, establishing data protection protocols and ensuring ethical implementation across the practice.
AI tools for accountants
The conference highlighted several specific tools that small practices can explore, including ChatGPT, Microsoft Copilot, Sage AI Tools, Fixer for email management, Guide Geek for travel and planning, Scribe for process documentation, and Agicap for cash flow forecasting.
Many tools offer free basic versions, with professional versions ranging from £10-£30 monthly. “The potential time savings far outweigh costs,” Patel said. “Even a modest productivity improvement can deliver significant returns on investment.”
For accountants looking to develop AI skills, speakers recommended TikTok AI educators, YouTube tutorials, platform-specific training, industry webinars and professional body courses as accessible learning resources.
Making tax digital and AI integration
AI tools will help practices with the transition to Making Tax Digital for Income Tax Self Assessment (MTD ITSA) in April 2026.
“AI will be instrumental in streamlining tax compliance and reducing errors,” Downing said. “As reporting requirements become more frequent, automation will be essential for practices managing multiple clients.”
Conference delegates heard concerns about data privacy, potential biases in AI systems and the need for human oversight. Downing said the onus was on accountants for accuracy and appropriateness. He underlined the importance of reviewing any AI response, saying “your professional judgement remains essential”.
AI expanding career pathways
AI will reshape accounting career pathways across every level. Entry-level professionals will need to develop skills in AI tool management, prompt engineering, data interpretation and technology integration.
Mid-career accountants will also need to become AI literate, transitioning from transactional to advisory roles and mastering complex problem-solving beyond algorithmic capabilities.
Senior leadership roles will transform to include technology integration leadership, AI strategy development, complex decision-making support and ethical AI implementation guidance.
New career specialisations will emerge, including AI financial technology specialists, digital transformation consultants, AI compliance and ethics experts, and advanced data strategy advisors.
“We’re not looking at job elimination, but job evolution,” Patel said. “The accountant of the future will be a strategic partner, powered by AI capabilities, not replaced by them. AI excels at processing and analysing data, but it cannot replicate the nuanced judgement, emotional intelligence, and strategic thinking that human accountants bring to complex financial scenarios.”
Downing cautioned the “accountants who will thrive are those who see AI as a collaborative tool, not a competitive threat”.
The AI and emerging technologies conference online is available to purchase on demand here.
