AI Agents for Accounting: Weighing the Risks and Rewards
Accounting has undergone monumental changes over the past several years. From sweeping mergers and acquisitions to new tax codes and now AI, the changes keep coming. Of these, agentic AI, the latest development in the AI revolution, has the potential to drastically restructure what it means to be an accountant. According to Deloitte, 74% of all companies plan to implement agentic AI within the next two years; however, only 21% of organizations have a mature governance model to oversee its use.
AI agents create a tough choice for accounting firms: wait and let governance catch up to agentic AI, risking being outpaced by the competition, or implement an imperfect model and assume some risk. The benefits of agentic AI are many: automation of tedious, repetitive tasks; semi-autonomous workflows that “learn” and improve over time; and the ability to unite multiple platforms to accomplish complex tasks with minimal input. More importantly, mass adoption of agentic AI could accelerate accountants’ evolution from seasonal compliance managers to strategic, year-round consultants.
But there are profound risks and uncertainty with agentic AI, especially with sensitive client data and cybersecurity. This post takes a closer look at how agentic AI is impacting accounting and how to implement it without unnecessary risk.
What is agentic AI?
Presently, there is no single definition of agentic AI. However, the part that makes it “agentic” is what most people tend to agree on: the AI’s ability to execute tasks without constant input. AI agents have emerged out of generative AI (gen AI). Most are familiar with gen AI through tools like ChatGPT, Claude, and Gemini. These tools provide interfaces for people to type or speak natural language prompts (NLP) to generate text, images, videos, and even applications.
The key difference between gen and agentic AI is “autonomy”.
For example, imagine you want to see a movie over the weekend. A user might prompt gen AI with “What movies are playing near me?” Gen AI then provides movie listings and links to purchase tickets. Agentic AI, when all permissions are enabled correctly, takes it several steps further and can purchase the tickets for you, email the receipt to your inbox, add the movie to your calendar, and send invites to guests.
Often, the terms “agentic” and “agent” are used interchangeably. However, there is a subtle, but critical difference:
An AI agent is built for a specific task (such as buying movie tickets).
Agentic AI is a platform that uses multiple agents across applications to complete a set of related tasks. For example, buying a movie ticket might involve agents securely reading payment information, searching for showtimes, and purchasing the ticket.
Potential applications of AI agents for accounting
Agentic AI is being billed as a “digital coworker” or assistant. With proper setup, it can handle many of the more time-consuming and repetitive tasks CPAs must contend with, especially during tax season.
These applications include:
Tax compliance and reporting automation: AI agents continuously monitor tax law changes, analyze financial data, proactively identify compliance risks, gather and categorize transaction data, and flag anomalies for professional attention.
Strategic tax planning: Agentic AI analyzes client data year-round against tax scenarios to surface savings opportunities and alert professionals to risks before they become problems. It can analyze market trends, financial data, and tax implications to assist in long-term business and tax planning.
Research and complex workflow automation: AI autonomously builds and navigates knowledge bases, extracts pertinent information, and provides plain-language, cited answers—reducing research from hours to minutes.
Audit assistance: Agentic AI reviews financial records, identifies anomalies, and prepares initial audit reports.
Office management: AI agents handle routine client communications, schedule meetings, and conduct initial consultations.
Collaboration: Manage project timelines, allocate resources, and coordinate between team members and AI agents.
What are the risks?
Adopting AI agents for your accounting firm is not as simple as flipping a switch. There are many risks and uncertainties to navigate.
Inaccuracies: No matter how well-trained an AI agent is, it can still hallucinate and make mistakes, including in high-stakes financial tasks
Setup: Converting data into standard, structured formats for AI agents is a heavy lift— the biggest challenges are often data engineering, stakeholder alignment, governance, and workflow integration (which consume ~80% of implementation work, according to one MIT study).
Irregular reliability and unethical behavior: A rogue AI agent making decisions based on faulty information can cause significant harm. Organizations must be able to explain decisions and consistently apply the same standards to every case.
Accountability gap: Organizations need to clearly delineate who bears responsibility when agentic AI makes an error, especially in autonomous workflows with minimal human supervision.
Cybersecurity risk: As AI agents gain access to sensitive datasets and enterprise systems, robust permission-based controls are essential to avert disaster.
Governance gap: There are a few emerging AI governance frameworks, but little government regulation. Until more universal standards are adopted, it is up to the organization to research and implement AI governance frameworks.
How to get started
First, identify which processes are prime candidates for automation. This list can help guide your research.
Next, learn as much as possible about agentic AI, especially the tools you are considering. Once you have chosen an agentic AI platform, move slowly and prioritize training and stakeholder buy-in. Try out proof-of-concept projects and low-stakes trials.
Finally, be sure to track time for POC tasks to demonstrate ROI, as time saved is a key metric in agentic AI.
Protecting yourself from emerging AI risks
“AI insurance” is an emerging concept in the risk management world, and as of writing, it is hard to get. However, several related coverage types, such as cyber liability, offer some protections. Agentic AI is a new technology, and the risk profile is still developing. Accounting firms need to work with an insurance partner that understands the risks of AI agents and how to mitigate them effectively.
McGowan Professional offers specialized insurance for accountants and CPAs, including Professional Liability, Cyber Insurance, Commercial Crime, and EPLI. We understand the risks and regulations of the accounting profession. Our tailored solutions offer peace of mind, allowing you to focus on client service.
Source: "AI Agents for Accounting: Weighing the Risks and Rewards." Originally published by McGowan Professional. Adapted for distribution by PCIA. Content is provided for informational purposes only and does not constitute legal or professional advice.