By Mary Delaney.
“Let’s wait and see.”
That approach may have worked for other emerging technologies in the past. But when it comes to AI, waiting isn’t neutral. It’s a decision. Firms that continue to hold back aren’t just standing still. They’re actively falling behind while others build.
At Karbon, we’re seeing the shift firsthand. According to our 2025 State of AI in Accounting Report, 85% of accounting professionals are excited or intrigued by AI, but only 19% think their peers feel the same. That disconnect is a sign that many are quietly moving ahead, while others assume the industry’s still holding back.
The real cost of inaction isn’t just about falling behind in tech. It’s about people.
The Talent Shortage Is Hurting Firms
First, let’s take a step back and look at the situation in front of us. Accounting’s talent shortage is real and persistent. In fact, hiring has emerged as one of the top headaches for firm leaders. And as more and more partners approach retirement, there are fewer and fewer young accounting graduates coming in to replace them.
There are many reasons for that, including low starting salaries, the 150-hour requirement as part of the CPA qualification process, outdated perceptions, and the long path to partnership.
Amongst all this, one thing is clear: today’s graduates want to do meaningful work.
And they don’t see that in data entry or in number-crunching.
AI Isn’t Just About Efficiency. It’s About Talent.
What does this have to do with AI?
Well, AI gives us a real opportunity to change this narrative. By automating the repetitive tasks that tend to fill those early years, like reconciliations, reporting, and inbox triage, we give young accountants the space to make a bigger impact, sooner.
That’s not hypothetical. Our research shows that 79% of accounting professionals believe graduates are more likely to join firms that actively use AI.
At these firms, AI is helping:
- Free up young CPAs to work on more meaningful client-focused work.
- Relieve some of the pressure of the annual January-to-April tax season crush for better work-life balance.
- Get bright young stars onto the leadership track faster.
- Enhance job satisfaction, excitement, and fulfillment.
If you think that these benefits may make the accounting profession more appealing to young grads, then I wholeheartedly agree. This presents a very exciting opportunity to integrate AI into your firm today.
Getting Started with AI: What Forward-Looking Firms Are Doing
Embracing AI doesn’t mean diving into deep machine learning or building a proprietary LLM. It means starting small and making room for growth, and enabling team members to experiment responsibly.
Here’s how many firms are setting themselves up for success:
- They’re talking about, and leading with, AI. Firm leaders who are having open conversations about AI at work are normalizing it. They’re leading by example by demonstrating exactly how they’re using AI today, and how they’re benefiting from it.
- They’re training their team. When firms invest in AI-focused education and training, they save a daily average of 66 minutes per employee, which is 22% more than those that don’t. That’s a difference of 40 hours annually. Despite this, 57% of firms offer no AI training, while only 37% actively offer or are developing educational resources related to AI. And firms at ground zero (those with no AI or AI training) are losing almost 7 weeks a year to their AI-progressive competitors.
- They’re empowering their people to experiment. Tech-forward firm leaders are creating AI committees and AI champions, and recognizing team members for innovative AI usage. They’re adopting an R&D mindset for AI and take the time to really explore and research potential use cases, sharing and demonstrating how it can help entry-level employees.
- They’re meeting with tech partners. 80% of accounting professionals have reported increased AI functionality in their existing software. Trusted software providers should have AI roadmaps.
- They’re crafting simple, clear AI policies. Their teams are empowered to use tools safely and wisely, and in ways that protect client data and foster responsible experimentation. As AI expert Inbal Rodnay puts it: “An AI policy is not there to create a cage, it is there to create a safe playground where your team can experiment and develop their skills.”
- They’re championing a shared vision. New team members get faster access to impactful work. Managers get more strategic time. Partners see a healthier bottom line.
Ultimately, AI adoption is a firm-wide mindset shift that starts with leadership.
From Hesitation to Momentum
It’s okay to be cautious. It’s smart to ask questions. But firms that wait too long risk watching their competitors attract better talent, operate more efficiently, and grow faster, all while they’re still evaluating options.
One more stat from our AI in accounting research: 27% of accounting professionals are concerned that the gap between AI-positive and traditional firms will continue to widen.
AI won’t solve every challenge in accounting. But it will change how we solve them. It already is.
So the question isn’t “Should we do this?” anymore. It’s “What are we waiting for?”
==
Mary Delaney is a visionary leader with over 20 years of experience driving growth, transformation, and innovation in B2B software. As CEO of Karbon, she works closely with accounting firms to optimize their operations through modern technology. Mary brings unique insight into how firms can streamline workflows, improve collaboration, and leverage connected ecosystems to drive efficiency and growth.
Thanks for reading CPA Practice Advisor!
Subscribe Already registered? Log In
Need more information? Read the FAQs
