What’s behind the hype of AI in accounting? 

Many finance teams rush toward Generative AI (such as ChatGPT, Gemini etc.) because it promises automated analysis, drafting, and insight at speed. In 2025, McKinsey reported that 92% of companies plan to increase AI investment in the next three years, but only 1% say they've reached maturity in integrating AI into workflows.  

According to CFO Dive, 96% of CFOs prioritize AI adoption but worry about trust, privacy, and ethics.  

Read on to learn the pros and cons of using GenAI tools for accounting tasks and whether that is truly the best way forward. 

Why accountants want AI in 2025: 

• AI offers automation of repetitive tasks - data entry, basic reporting, invoice matching. 

• Our 2025 AI in Audit report finds 91% of professionals anticipate significant growth in AI adoption within their firms over the next two years, up from 88% in 2024. 

• Accounting firms face labor shortages and want to make work less tedious; EY is investing heavily to blend AI and human teams to improve audit quality. 

• There’s increasing pressure to modernize. CFOs cite economic pressure, data quality, and governance concerns as top risks in 2025. 

Why ChatGPT feels appealing for accountants 

• Fast answers for common questions: ChatGPT handles general queries like tax definitions or journal-entry formats. 

• Drafting basic text: Engagement letters, internal emails, onboarding docs can be generated quickly. 

• Ideation and checklist creation: It can suggest risk categories or test ideas as a brainstorming aid. 

• Low upfront cost: It’s available with minimal investment, especially for small firms. 

• Leadership visibility: Using ChatGPT signals innovation, helping secure budget for broader projects. 

The truth: Why GenAI tools fall short in real accounting work 

• Limited context understanding: ChatGPT doesn’t interpret your audit methodology, client risk, or internal controls. Forbes noted context blindness as a key shortcoming. 

• Data governance and privacy risk: ITPro reports only 7% have embedded AI governance frameworks despite 93% using AI. And Financial News London says <30% of firms have policies to protect client data. 

• No traceability or audit trail: ChatGPT outputs are unverified. ICAEW and Journal of Accountancy highlight lack of source citation as a major issue. 

• Incapable of financial testing: ChatGPT cannot run audit tests or control reviews. BCG and PwC say ROI depends on purpose-built tools. 

• Risk of over-reliance and hallucination: Outputs can mislead under pressure. METR found 19% slowdowns when teams over-relied on GenAI. 

Best purpose-built audit tools for modern accounting teams 

ChatGPT or other GenAI tools is not the solution for financial audit work. Instead, pursue solutions built for accounting teams that embed automation into proven audit workflows and respect data governance. 

Luckily, we listed the top audit software for accountants that speeds up real work without hallucination risk or exposing sensitive information. 

Finally, if you’re focused on finding the right AI tools, make sure you also focus on ethical considerations in accounting for transparent financial practices 

Conclusion: Choose the purpose-built AI in accounting platforms 

If you’re an auditor or accounting professional searching for "ai in accounting firms" or "financial accounting with ai", you probably want tools designed that does not compromise your information, hallucinate, require manual data entry every time for a task. Rather, you’re looking for audit accuracy, data governance, and an Excel-native integration to get the best out of your work.  

Purpose-built AI audit platforms, like DataSnipper (which is being used by the Big 4) ensure your accounting use-cases are in check; such as performing Test of Details, payroll testing, batch payments, AR cut-off, and cash confirmation procedures. 

For accountants planning the future of accounting with AI, the winners will be those who apply AI carefully, using tools that integrate inside Excel - not generic generative platforms which promise the world, but may deliver little.