Australian accounting firms are watching artificial intelligence and automation with close interest. These technologies are advancing quickly and already handle many routine tasks in practice. Some believe they will ease the talent shortage by boosting productivity. Others worry that AI could reduce demand for junior roles or create new skill gaps. The long-term outcome remains uncertain, but current industry reports offer useful insights into what lies ahead.
Professional bodies and global firms have published projections that help clarify the picture. AI is likely to transform certain aspects of accounting work, while leaving others largely unchanged. Firms need to understand both the opportunities and the risks to position themselves effectively. This involves assessing which tasks technology can replace and which require human judgment.
Tasks AI Is Likely to Replace
Industry reports consistently identify routine compliance and data entry as areas where AI delivers strong results. Tools now automate bank reconciliations, invoice processing, and basic tax calculations with high accuracy. Deloitte and PwC analyses indicate that these repetitive functions, which often occupy significant junior time, are among the first to be streamlined. Firms adopting such systems report reduced manual effort and fewer processing errors.
This shift allows practices to reallocate resources. Staff previously focused on data entry can move toward review and analysis roles. The change improves efficiency, particularly during peak lodgement periods. However, implementation requires careful oversight to ensure data integrity and regulatory compliance. Firms that integrate AI thoughtfully see measurable productivity gains in these areas.
Roles That Remain Human-Centric
Complex advisory work, ethical judgment, and client relationships continue to depend on human expertise. CA ANZ and CPA Australia publications emphasise that interpreting nuanced client situations, providing strategic advice, and exercising professional scepticism are not easily automated. These activities require understanding context, building trust, and applying judgement in ambiguous scenarios.
Senior accountants and partners handle these responsibilities effectively. Clients value personal interaction and tailored guidance, especially in areas such as business structuring, risk management, and dispute resolution. AI can support these roles by providing data insights, but the final decisions and communication rest with experienced professionals. This ensures that advisory services retain their value and relevance.
Productivity Gains Versus Risks of Deskilling
Automation offers clear productivity benefits. Reports from global firms project that firms using AI tools can increase output per staff member significantly. Routine tasks completed faster free capacity for higher-value work. Smaller practices in particular benefit from this, as they often operate with limited headcount and tight margins.
At the same time, there is a recognised risk of deskilling junior accountants. If entry-level roles diminish, fewer opportunities exist for new graduates to gain foundational experience. CPA Australia has highlighted concerns that reduced demand for junior positions could discourage students from entering the profession. Firms may need to rethink training structures to maintain a pipeline of skilled professionals over the long term.
Positioning Firms for the Shift
Firms can take practical steps to prepare for these changes. Investing in AI literacy and upskilling programs helps staff use new tools confidently. Many practices now include technology training in their professional development plans. This approach ensures that teams remain adaptable as workflows evolve.
Reviewing current processes also proves valuable. Identifying tasks suitable for automation allows firms to prioritise implementation. Larger practices often lead in this area, but smaller firms can adopt cloud-based tools with manageable costs. Regular evaluation of AI outputs maintains quality and compliance standards. These measures help practices balance efficiency gains with the development of human expertise.
BOSS has supported firms for over 20 years. Our offshore accounting teams can support Australian firms in two key ways during this period. AI and automation reduce routine workloads but do not eliminate the need for accurate, compliant processing. Offshore teams, experienced and integrated with tools such as Xero and MYOB, handle these tasks reliably. This allows onshore staff to focus on advisory, client relationships, and strategic work that technology cannot replace. Firms maintain service quality while adapting to new capabilities.
Capacity pressures persist as technology adoption varies across practices. Offshore support provides additional resources quickly, without extended recruitment timelines. Practices avoid bottlenecks during transition periods, reduce overtime demands, and prevent delays or write-offs. This approach helps sustain operations and client confidence as the profession navigates ongoing change.
For more details on preparing for outsourcing, visit our page on how to get ready for accounting outsourcing success. You can also review the BOSS Outsourced Accounting FAQ or contact us at Contact BOSS for Offshore Accounting Services.
Sources
CA ANZ and CPA Australia technology and workforce reports (2025).
Deloitte Global and PwC Australia AI in accounting analyses (2025).
Jobs and Skills Australia, future skills projections (2025).
Frequently Asked Questions
Will AI replace accountants entirely?
No, AI is expected to automate routine tasks like data entry and basic compliance, but roles requiring judgment, advisory, and client relationships will remain human-centric (CA ANZ and PwC reports, 2025).
How much productivity gain can firms expect from AI?
Industry analyses project 20–40% efficiency improvements in routine work, allowing staff to focus on higher-value advisory services (Deloitte and CPA Australia projections, 2025).
Does AI risk creating fewer junior roles?
Yes, reduced demand for entry-level data processing could limit training opportunities for new graduates, potentially discouraging students from entering the profession (CPA Australia workforce concerns, 2025).
What should firms do to prepare for AI in accounting?
Invest in staff upskilling for AI tools, review workflows to identify automatable tasks, and maintain focus on human-centric advisory services to stay competitive (Jobs and Skills Australia future skills outlook, 2025).
Can offshore support help during the AI transition?
Offshore teams handle routine tasks reliably, freeing onshore staff for strategic work and client relationships while firms adopt AI tools gradually.
