Demystifying AI for Accountants: A Practical Guide to Getting Started
AI is already part of the accounting profession. Here’s how firms can start using it safely, ethically, and effectively.
AI in Accounting: Why It Matters Now
Artificial intelligence (AI) is no longer a futuristic buzzword — it’s already part of the tools many accountants use daily. From optical character recognition to automated bank feeds and email triage, AI is quietly reshaping how firms operate.
But with the rise of generative AI tools like ChatGPT, many accountants are still cautious. A recent survey by Praxio AI revealed that 21% of small-to-medium firms are not using AI at all, and 47% only use it infrequently.
So, how can firms get started confidently and responsibly? This guide explains what AI is (and isn’t), how it adds value in practice, and what steps to take next.
What AI Is — and Isn’t
In simple terms, artificial intelligence refers to machines performing tasks that typically require human intelligence — like recognising patterns, generating text, or making predictions.
One of the most visible forms is generative AI, which can create new content such as summaries, emails, or code. Tools like ChatGPT are powered by large language models, trained on massive datasets to predict the most likely next word or sentence.
👉 Think of it as a calculator for language — powerful and fast, but only effective with skilled input and professional judgement.
Where AI Helps Accountants the Most
AI is already delivering real productivity gains for accountants by taking on repetitive and time-consuming tasks. Here are some of the most practical use cases:
Summarising tax legislation and rulings
Drafting client emails, reports, and engagement letters
Performing financial and market analysis
Extracting insights from ATO releases or court rulings
Automating notetaking using tools like Fireflies, freeing up attention for client interaction
Purpose-built solutions like Praxio AI – Tax Assistant are designed specifically for Australian accountants and tax advisors, helping reduce research time while maintaining audit trails and citations.
✅ AI should enhance your expertise — not replace it. It helps you focus more on high-value work like advisory and planning.
Understand the Risks and Use AI Responsibly
While AI offers powerful benefits, it comes with real risks that require care and oversight:
Hallucinations: AI may generate content that looks correct but is factually wrong.
Bias and misinformation: Outputs can reflect flawed or unverified sources.
Privacy breaches: Sensitive data should never be entered into general-purpose AI tools.
Compliance risks: Poorly vetted outputs can lead to professional liability.
A global study found that only 36% of Australians trust AI, with 78% concerned about its misuse.
Firms should adopt a "human-in-the-loop" approach — always review outputs, verify sources, and choose trusted, purpose-built tools that prioritise ethical use and data security.
5 Practical Tips to Start Using AI in Your Firm
You don’t need to overhaul your systems overnight. Here’s how to start small and build confidence:
Pick routine tasks first – like summarising ATO updates or drafting internal memos
Choose the right tools – test general options like ChatGPT and accounting-specific ones like Praxio AI
Design better prompts – clearly explain what you want, add context, and ask follow-up questions
Check everything – always verify facts and request source links
Keep it internal – avoid using client data until your systems and staff are ready
🎯 AI is a tool, not a shortcut — but when used well, it can unlock major gains in speed, clarity, and strategic value.
AI Won’t Replace Accountants — But It Will Change the Game
There’s a common fear that AI will replace accountants. The truth? It’s not AI vs. humans — it’s accountants using AI vs. those who don’t.
Firms and clients will increasingly expect professionals to use AI for faster, smarter outcomes. Those who adapt early will be better positioned to deliver value and retain trust.
“AI will not replace professionals. But professionals who use AI may replace those who don’t.”
How to Get Your Firm AI-Ready
Starting with AI doesn’t mean jumping in headfirst. Take a structured, low-risk approach:
Start with internal tasks like tax research or meeting notes
Set firm-wide guidelines for safe and ethical use
Nominate an AI lead to trial tools and train others
Use a sandbox environment to test outputs on dummy data
Attend AI learning sessions to build team capability and confidence
Praxio AI regularly runs training sessions for Australian accountants, offering practical guidance on adopting AI without compromising ethics or quality.
A Future-Ready Mindset
AI is quickly becoming a foundation of modern accounting. It won’t replace professional expertise — but it will reshape how insight and value are delivered.
✅ By starting today, firms can lead rather than react.
✅ With the right tools and mindset, AI can elevate your practice — not undermine it.
Tools like Praxio AI – Tax Assistant are already helping Australian firms embrace this opportunity with confidence and clarity.
About the Author
William Young FCPA GAICD is a contributor of Praxio AI, a purpose-built AI platform for Australian tax and accounting professionals. He is a recognised speaker on AI in accounting, known for delivering practical, ethical, and forward-looking advice to the profession.