“We’ve underestimated how quickly AI is changing our profession.”
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Accounting ARC
With Liz Mason, Byron Patrick, and Donny Shimamoto
Center for Accounting Transformation
In a world where artificial intelligence is rapidly evolving, agentic AI is emerging as a powerful tool that could redefine the accounting profession. Unlike traditional AI applications, agentic AI doesn’t just respond to prompts—it actively coordinates multiple AI models to complete complex workflows. But is this a breakthrough for efficiency, or does it pose risks for the industry?
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In a recent episode of Accounting ARC, hosts Byron Patrick, CPA.CITP, CGMA; Donny Shimamoto, CPA.CITP, CGMA; and Liz Mason, CPA, break down the meaning, potential, and risks of agentic AI in accounting.
“Agentic AI is about AI acting as an agent, not just a tool,” explains Shimamoto, founder and managing director of IntrapriseTechKnowlogies LLC and founder of the Center for Accounting Transformation. “It can take a single task, break it into smaller components, and distribute it across specialized AI models—then bring everything back into a cohesive solution.”
According to Mason, CEO of High Rock Accounting, this type of AI operates more like a fully autonomous worker, continuously performing tasks based on real-time data and triggers. “It doesn’t sleep, take vacations, or need breaks. It’s constantly monitoring and acting,” she says.
One of the biggest opportunities for agentic AI is in audit and financial planning. “We’ve been talking about 100% audit coverage for years,” says Patrick, CEO of VERIFYiQ and co-founder and educator for TB Academy. “With AI capable of analyzing every transaction in real time, we’re closer than ever to making that a reality.”
Shimamoto agrees, pointing out that AI could make audit processes more dynamic. “Imagine an audit where AI continuously flags anomalies instead of waiting for year-end reviews. That’s where we’re heading.”
In tax preparation, however, Mason warns that the complexity of U.S. tax laws could slow AI adoption. “We need better tax engines,” she says. “The problem isn’t the AI—it’s the outdated infrastructure of our tax systems.”
Despite its promise, agentic AI also introduces new challenges and ethical concerns. “AI is only as good as the data it’s trained on,” warns Mason. “Bias, inaccuracies, and bad data could lead to flawed decision-making.”
Shimamoto also highlights the risk of AI going ‘rogue’. “If AI starts making decisions without clear oversight, firms could face compliance risks. Guardrails are critical.”
For accounting firms, the key takeaway is that AI isn’t replacing accountants—it’s transforming their role. As Patrick puts it, “The firms that thrive will be those that embrace AI for efficiency, insights, and strategy while maintaining human oversight.”
As agentic AI continues to develop, CPAs must stay informed, build AI literacy, and establish strong ethical guidelines to navigate this new era.
10 Key Takeaways
- Agentic AI is an advanced form of automation that coordinates multiple AI models.
- Audit and financial planning could be transformed through AI-driven decision-making.
- AI adoption is growing, but human oversight remains essential.
- Standardized processes are necessary for firms to successfully integrate AI.
- Bias in AI models remains a significant concern.
- AI could eliminate many routine accounting tasks, but not professional judgment.
- The tax industry faces major hurdles in AI adoption due to regulatory complexity.
- Continuous audits could become a reality with AI-powered anomaly detection.
- AI literacy will be a key skill for accountants moving forward.
- Firms must prepare now for the AI-driven transformation of accounting.