A Top Technology Initiative Article by Randy Johnston. – December 2025
The accounting profession has constantly evolved alongside technology, but the pace of change entering 2026 feels materially different. The last few years were defined by recovery, experimentation, and aggressive vendor positioning. What lies ahead is more consequential: consolidation of platforms, operationalization of artificial intelligence, and a growing divide between firms that orchestrate technology well and those that merely “own” it.
As with prior years, these predictions and conclusions are informed by extensive conversations with firm leaders, vendors, and practitioners across North America, including attendance at national conferences, regional society meetings, vendor advisory councils, and peer roundtables. These settings continue to be where truth emerges—away from polished marketing decks and into the lived realities of implementation, staffing, pricing, and client service. The observations below align with themes surfaced throughout the 2025 conference season and look ahead to what firms should expect in 2026.
As I wrote in last month’s column on conference-season reflections, the best signal still comes from two sources: what is announced on stage, and what practitioners say in the hallways. The vendor story is essential. The practitioner’s reality is decisive. And the delta between the two is where you will find both risk and opportunity.
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What follows is a “2026 lens” on that reality—now heavily shaped by the mainstreaming of agentic AI, escalating governance requirements, and an increasingly blunt question from partners and clients alike: If technology is this powerful, why does the work still feel this hard?
The Big Theme: AI Moves from Assisting to Acting
We crossed an important line: AI is no longer limited to drafting text or summarizing emails. In 2026, leading platforms are pushing toward agentic workflow software that can initiate steps, route work, reconcile inputs, and present “ready for review” outputs.
That shift is visible in major platform roadmaps and releases across tax and audit ecosystems—particularly where vendors are emphasizing document understanding, evidence linkage, and explainable outputs (the kind that withstand partner review and peer review). For example, Thomson Reuters has publicly positioned “agentic AI” to transform tax preparation and document-heavy workflows, including tools that prepare returns for professional review and automate document analysis in audit contexts.
Wolters Kluwer has similarly framed its direction as a unified intelligence across tax, audit, and firm management—explicitly tying AI to a “digital core” and workflow automation, not just as a set of point features.
What this means in practice in 2026:
- The best firms will run AI-enabled workflows.
- The rest will run AI tools—and wonder why results do not compound.
- Leading-edge firms will build their own agentic AI
We see a future that includes the use of Large Language Models (LLMs) and Generative AI (GenAI) tools such as ChatGPT, Copilot365, Gemini, and Claude, supplemented by our standard AI-enabled technology stack and empowered by Agentic AI.
Agentic AI Becomes Practical
Artificial intelligence has moved well beyond experimentation. In 2026, AI is no longer novel. It is expected. The fundamental shift is not generative AI itself, but agentic AI, where software initiates tasks, monitors conditions, and coordinates actions across systems.
For accountants, this manifests in several practical ways:
- Continuous Review. AI agents flag anomalies, missing data, or risk indicators throughout the month, not just at close.
- Advisory Readiness. Systems proactively assemble insights, ratios, and narratives before client meetings.
- Operational Delegation. Routine follow-ups, reconciliations, and documentation requests are increasingly automated.
Importantly, firms are learning that AI does not eliminate professional judgment—it exposes it. When routine work fades, the quality of decisions becomes visible.
The Rise of the “Digital Senior”
One of the quiet but critical trends in 2026 is the emergence of what many firms now call the “digital senior.” These are professionals who blend accounting expertise with workflow design, AI oversight, and client communication.
These individuals are not programmers, but they are:
- Fluent in automation logic
- Comfortable supervising AI-generated outputs
- Skilled at translating insights into client conversations
Firms that intentionally develop this role are reporting improved leverage, faster onboarding, and stronger client satisfaction. Those that do not are struggling to scale, regardless of how many tools they license.
The profession has been living through a multi-year technology shift, but 2026 is where the consequences become unmistakable. The last cycle was about adoption: moving systems to the cloud, digitizing documents, and bolting on automation. This next cycle is about orchestration—bringing platforms, people, and processes together as a cohesive system that delivers better outcomes with less friction.
The Shift from Tools to Systems
For years, firms have accumulated technology the way closets accumulate unused coats—well-intentioned purchases that rarely work together. In 2026, that model becomes unsustainable. Firms are no longer asking, “What app should we buy next?” Instead, the dominant question has become, “What system are we actually running?”
Operational focus is driving three notable changes:
- Platform Rationalization. Firms are reducing tool sprawl, favoring fewer, deeper platforms with strong APIs and embedded intelligence.
- Workflow First Thinking. Buying decisions are increasingly driven by end-to-end workflows rather than feature lists.
- Vendor Accountability. Firms expect measurable productivity gains, not aspirational roadmaps.
Technology decisions are now operational decisions, and operational decisions are increasingly strategic.
Tax: “Return Prep” Becomes a Workflow, Not a Season
Tax technology trends for 2026 are being shaped by three forces: client expectations of speed, staffing constraints, and the rapid improvement of extraction/categorization engines.
- The “Ready to Review” pattern spreads – The direction is clear: ingest source documents + prior-year context, extract and classify, and produce a structured result that a professional reviews and completes. Vendors, such as Thomson Reuters, are explicitly marketing agentic tax workflow tools designed to speed up 1040 preparation and shift effort toward judgment and advisory work.
- Tax research and memo drafting become operational – In corporate and complex tax, the practical GenAI use cases reported are less about “magic answers” and more about drafting memos, summarizing changes, monitoring developments, and improving analysis under governance. That theme is reflected in tax-technology commentary that emphasizes GenAI pilots moving into real use and the reality that data readiness and controls determine success. All major tax research platforms incorporated AI, and new competitors entered the market, including BlueJ, TaxGPT, and Accordance.
- The government side matters more than many firms would like it to – Your tax workflows are affected by IRS guidance and federal program choices. A few examples: now that IRS Direct File will not be available for the 2026 filing season, the IRS is implementing AI and API access, and Intuit has made a deal with OpenAI for tax advice. The changing landscape for some taxpayers reinforces the private-sector dominance of filing channels.
Tax takeaways for 2026:
- Workflow Orchestration. Build tax production as a pipeline—ingest → validate → prepare → review → deliver.
- Evidence Discipline. Require source linkage and exception reporting; do not accept “AI said so.”
- Advisory Expansion. Use time saved to formalize planning engagements, not just absorb more compliance.
In your tax practice, you’ll find opportunities where AI has been added to products that you already use, like Checkpoint Edge with CoCounsel or Wolters Kluwer Answer Connect. Beyond that, you are likely to find new tools that are using AI extensively, like Black Ore Tax Autopilot, Filed, Magnetic, and many other products in my August column, Not So Secret Agents.
Audit: Document Intelligence Meets “Audit-Ready AI”
Audit is one of the clearest places where AI must be credible, not just clever. In 2026, we see increasing attention to explainable, secure, and defensible systems, especially for evidence handling and workpaper quality. One industry commentary trend labels the emerging standard as “audit-ready AI,” emphasizing transparency and governance expectations in regulated finance environments.
Meanwhile, major audit platforms are pushing agentic document analysis deeper into core workflows—extracting key information for vouching/substantive procedures, generating workpapers with citations, and scaling reviews. Thomson Reuters has described agentic tools aimed at automating the complex audit document review process using cited workpapers. Wolters Kluwer has also publicized expanded AI capabilities in its audit suite and positioned “Expert AI” as a benchmark for embedding intelligence directly into audit workflows.
Audit takeaways for 2026:
- Evidence and Explainability. Demand citations and traceability inside workpapers.
- Risk Focus. Use AI to raise exceptions and inconsistencies sooner, then apply professional skepticism.
- Quality Systems. Treat AI outputs as inputs to your QC process, not as replacements for it.
Audit platforms, guidance, and tools are increasingly incorporating AI. From Trullion to DataSnipper to Auditor Intelligence, and more, your audit practice is seeing AI change.
CAS Matures—or Fails Fast
Client Accounting Services (CAS) continues to grow, but 2026 marks a dividing line. CAS practices that are well-defined, well-priced, and well-systematized are thriving. Those built on custom work, vague scopes, or underpriced labor are not.
Key characteristics of successful CAS practices in 2026 include:
- Standardized Service Tiers. Clear deliverables tied to pricing and outcomes.
- Embedded Intelligence. Dashboards and alerts replace static monthly reports.
- Advisory Cadence. Regular, structured conversations replace reactive meetings.
Technology enables CAS, but discipline and process sustain it.
Wealth Management: Accountants’ Next Integration Frontier
Wealth management is often discussed as a separate industry. Still, the technological patterns are increasingly relevant to accounting firms that have an RIA, partner with advisors, or deliver “total financial” advisory.
A recent wealth-management industry report summary notes significant technology impact on operations, with many executives citing digital platforms that improve account management and meaningful AI use in marketing and client processes, alongside heightened cybersecurity, and privacy measures.
That aligns with what many accounting leaders are seeing: clients want coordinated guidance across tax, retirement, estate, risk, and business planning. Technology is becoming the “glue” for that coordination.
Wealth management takeaways for 2026:
- Client Experience Platforms. Expect consolidation around unified portals and planning/reporting hubs.
- AI-Enabled Personalization. Firms will tailor communications and planning scenarios at scale—but must govern data use.
- Cybersecurity Pressure. The bar for controls rises when financial accounts, PII, and planning data converge.
That aligns with what many accounting leaders are seeing: clients want coordinated guidance across tax, retirement, estate, risk, and business planning. Technology is becoming the “glue” for that coordination.
Governance Stops Being a Policy and Becomes a Practice
Governance is now being described as “non-negotiable” in mainstream commentary on accounting technology, emphasizing privacy, security, and explainability frameworks as core requirements—not optional guardrails.
In 2026, clients and insurers increasingly expect you to answer questions such as:
- Where does client data go?
- What is retained, and for how long?
- Are outputs explainable and reviewable?
- What controls exist over prompts, access, and logs?
Firms that can demonstrate control will have an advantage—not only in risk reduction, but in market credibility. Security, privacy, and governance are non-negotiable. As AI and automation deepen their reach, governance has moved from a compliance checkbox to a board-level concern. Firms are being asked—by clients, regulators, and insurers—to demonstrate control over data flows, AI usage, and vendor risk.
In 2026, leading firms will:
- Documented AI usage policies
- Vendor risk assessments tied to contracts
- Defined ownership of data, models, and outputs
Improving security and governance while protecting privacy is not about fear, it is about professionalism.
The Workforce Shift: The Pyramid Wobbles
Across professional services, widely reported patterns show AI reducing the need for certain junior-level, repetitive tasks and pushing firms toward smaller teams with higher leverage—while simultaneously increasing pressure to train and redeploy talent.
For accounting firms, which translates into a practical 2026 reality:
- Firms will need fewer “tick-and-tie only” hours
- Firms will need more people who can design workflows, supervise outputs, and communicate insights
- Training becomes an operating investment, not a compliance exercise
Upskilling is not a philosophical change; it is an economic one.
Training Time Is the New Capital
Perhaps the most underappreciated trend for 2026 is the revaluation of training time. Firms are recognizing that buying technology without investing in learning is equivalent to buying equipment without electricity.
High-performing firms are reallocating:
- Fewer hours to passive CPE
- More time for hands-on, scenario-based learning
- Dedicated space for experimentation and refinement
The goal is not more knowledge—it is applied capability.
So, What Should You Do in 2026?
The question facing accountants in 2026 is not whether technology will change their work—it already has. The real question is whether firms will lead that change intentionally or absorb it reactively.
- Audit your current workflows before buying anything new
- Identify where judgment adds value—and where it does not
- Invest in people who can bridge accounting and technology
- Demand measurable outcomes from vendors
- Treat training as a strategic asset, not an obligation
If you only take a few actions, make them these:
- Pick a “primary platform” strategy. Reduce tool sprawl and focus on integrated workflows.
- Operationalize AI in one lane at a time. Start with document-heavy processes where benefits are measurable (tax intake, audit evidence, research/memo drafting).
- Build review-ready standards. Require citations, exception reports, and traceability for AI-assisted outputs.
- Treat training as capital. Replace passive learning with scenario practice and workflow drills.
- If you have the capacity, add one new advisory “product” per quarter. Convert time savings into packaged value—planning, forecasting, cash flow strategy, risk reviews, wealth integration.
The tools available today can either lighten the load or expose inefficiencies. The difference lies not in the software, but in how deliberately it is adopted.
The profession remains one of trust, judgment, and service. Technology in 2026 does not replace those values—it amplifies them. For firms willing to adapt thoughtfully, the opportunity has rarely been greater.
Just as I suggested through my columns this year and those of the past: conferences and publications can inspire action, but the payoff comes from disciplined execution—choosing wisely, demanding outcomes, and investing in the people who make systems work. Wishing you the greatest success in 2026 and beyond!
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