Sage predicts AI-led transformation in accounting by 2030

Sage has unveiled five significant predictions for the accounting industry's future by 2030, informed by a Forrester Consulting study that engaged over 2,300 small and medium-sized business (SMB) finance leaders. These insights provide a glimpse into how artificial intelligence (AI) might reshape financial operations, bolstering continuous insights and strategic decision-making capabilities.

The study suggests over 80% of SMBs will adopt robust AI ethics policies by the end of the decade. Aaron Harris, Chief Technology Officer at Sage, commented, "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. This shift will empower businesses with unparalleled operational efficiency, improved compliance, robust risk management, and more accurate financial forecasting."

The first prediction emphasises ethical AI leadership, projecting that robust AI ethics policies will become a priority, with SMBs playing a leading role in ethical AI assurance. By 2030, 80% of SMBs are expected to have adopted comprehensive AI ethics protocols.

The second prediction anticipates a total overhaul of risk management practices. The study indicates that over 90% of SMBs will leverage AI for continuous monitoring and anomaly detection, which could reduce financial errors and fraud by more than 95%, signifying a major shift in risk management.

The third prediction forecasts the end of the traditional monthly close. With 75% of SMBs expected to transition to dynamic, continuous accounting practices, real-time data will supplant conventional methods. This transition depends heavily on the success of continuous assurance, whereby AI-driven risk management will enable real-time reconciliation and assurance capabilities.

According to the fourth prediction, real-time data will become integral to financial decisions. The study found that over 70% of SMBs are projected to use real-time data to inform their financial decisions, helping them drive growth and innovation within the competitive landscape anticipated in 2030.

The final prediction suggests increased roles and opportunities within the accounting profession. AI is expected to automate routine accounting tasks, freeing professionals to focus on strategic thinking and providing valuable business insights. This shift aims to allow accountants to leverage their expertise innovatively, driving business strategy and innovation.

Alistair Brisbourne, Head of Technology Research, Policy & Insights at ACCA, also weighed in on the 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. 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," said Brisbourne.

He also remarked on the strategic and collaborative approaches organisations plan to address ethical challenges. "It's positive to see that organisations are planning a strategic and collaborative approach to managing ethical challenges, which speaks to some of the hallmarks of the profession. There is a real opportunity to level up based on securing the ethical standards, professional judgement, and human insight that make accountancy and finance professionals trusted sources of data and insight."

The study comprises responses from 2,339 finance and accounting professionals from eight countries, including the United States, United Kingdom, France, Canada, Spain, Portugal, Germany, and South Africa. Participants held various roles, including Head of Accounting, Senior Accountant, Director, Treasury, CFO, and Business Owner.