Future of accounting: Sage predicts AI to revolutionise by 2030

In a recent study conducted by Forrester Consulting, commissioned by Sage, five significant predictions for the future of the accounting landscape by 2030 have been outlined.

The study surveyed 2,339 small and medium-sized business (SMB) finance leaders and revealed several transformative trends driven by the adoption of artificial intelligence (AI).

One of the primary predictions is that by 2030, over 80% of SMBs will have adopted robust AI ethics policies. Sage emphasises that ethical AI will become a fundamental aspect of the business, with companies not only implementing these policies but also leading in ethical AI assurance. Aaron Harris, Chief Technology Officer at Sage, stated, "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."

The second notable prediction is a total overhaul in risk management. The study anticipates that 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 transformation will reportedly mark a significant reinvention in how businesses manage risk.

Sage also predicts the end of the traditional monthly financial close. By 2030, 75% of SMBs are expected to transition to dynamic, continuous accounting practices enabled by real-time data. This shift will hinge on the success of continuous assurance provided by AI, allowing for real-time reconciliation and other assurance capabilities.

Additionally, over 70% of SMBs are expected to use real-time data to make financial decisions, which is anticipated to drive growth and innovation within the competitive landscape of 2030. Harris commented on this aspect, stating that AI will empower businesses with "unparalleled operational efficiency, improved compliance, robust risk management, and more accurate financial forecasting."

The final prediction concerns the evolution of roles within the accounting profession. AI is expected to automate routine tasks, enabling accountants to focus more on strategic thinking and providing valuable insights to businesses. This transition is forecasted to create new opportunities, allowing accountants to leverage their expertise in more strategic and innovative ways.

Alistair Brisbourne, Head of Technology Research, Policy & Insights at ACCA, also highlighted the potential of AI in the accounting sector. "While AI will ultimately be used to monitor all business activity and discover opportunities and risks in real-time, it will still play a supporting role in the industry, with outcomes and decisions always residing with a human," said Brisbourne. He added that organisations are adopting a strategic and collaborative mindset towards managing ethical challenges, reflecting the profession's core values.

The study's methodology involved collecting surveys from finance and accounting professionals across eight countries, including the United States, United Kingdom, France, Canada, Spain, Portugal, Germany, and South Africa. The survey targeted SMBs with 10 to 499 employees and included roles such as Head of Accounting, Senior Accountant, Director, Treasury, CFO, and Business Owner.

Sage's vision for the future underscores the importance of ethical AI integration and the need to build trust in AI-powered solutions. The company is committed to working with small businesses to navigate this transformative period and harness AI's full potential to drive success.