AI is rapidly transforming the accounting profession, not just as a tool for automation but as a strategic asset that enhances efficiency, improves decision-making, and enables accountants to focus on higher-value work. In a recent conversation on the Silver Linings podcast, Chris Downing, Director for Product Marketing at Sage, shared his perspective on AI’s role in shaping the future of accounting and the practical steps firms can take to leverage its full potential.
AI in accounting: more than just automation
“Everyone’s been getting excited about generative AI ever since OpenAI and ChatGPT came along,” says Chris. “But Sage has been investing in AI for a good eight years, whether through our own products or strategic acquisitions.”
AI in accounting isn’t just about automating repetitive tasks – it’s about fostering trust, improving data accuracy, and delivering meaningful insights. “There’s no point asking questions of information unless you can actually trust the quality of that information,” Chris explains. That’s why Sage’s approach to AI isn’t just about introducing new tools but ensuring that accountants and bookkeepers can rely on them to drive real value.
What sets purpose-built AI apart?
One of the biggest challenges in the industry is distinguishing between real AI and surface-level implementations. “Large language models like ChatGPT and Google Gemini are broad in their approach. They can surface information, but they can also be confused,” says Chris.
Sage’s AI, including its Copilot feature, is designed specifically for accountants. “Our AI assistant is trained with a purposeful mission – to help accountants and bookkeepers with finance. It understands the workflows, the needs, and the jobs to be done. That’s what makes it different from more generic AI tools.”
This targeted approach allows AI to go beyond automation and act as a digital assistant that continuously learns from user behaviour, providing real-time insights and nudges to improve decision-making. “The latest themes of AI aren’t just about automating tasks. They’re about understanding what’s happening, providing prompts and nudges, and improving efficiency in ways we haven’t seen before.”
AI’s role in forecasting and business insights
AI’s ability to analyse transactional data at scale is also transforming cash flow forecasting and financial planning. “Forecasting isn’t just about looking at a nominal ledger balance,” Chris explains. “It’s about understanding customer and supplier behaviors, payment volumes, and trends.”
One of the biggest time drains in financial forecasting is not just running the numbers but writing up reports. “Accountants are great at number crunching but not always wordsmiths,” Chris admits. “Generative AI can help create clear, concise reports based on financial insights, giving accountants more time to review, validate, and discuss findings with clients.”
AI as a solution to the talent shortage
The accounting profession is busier than ever, with firms struggling to recruit and retain talent. AI can help bridge the gap between demand and capacity. “AI allows firms to do more with less,” Chris notes. “It frees up accountants from mundane tasks and reinforces their knowledge of tax legislation, reporting, and compliance.”
He highlights how AI-powered assistants are already making a difference. “We’ve seen people train AI models with the latest accounting standards, allowing them to ask complex regulatory questions and get instant, accurate responses. That’s a game-changer for firms looking to upskill their teams quickly.”
Advice for firms looking to implement AI
For firms hesitant about adopting AI, Chris advises starting small and focusing on data quality and strategic integration. “The firms seeing real value from AI aren’t just chasing bright, shiny objects. They’re focusing on what matters, ensuring data quality, identifying key applications, and embedding AI into existing workflows.”
He also stresses the importance of education and training. “Many firms, especially smaller ones, don’t have the capacity to experiment with new technology. That’s why tech providers need to do more to showcase AI’s potential and provide hands-on support.”
Beyond implementation, firms must also establish an AI policy to manage data security and compliance. “Every firm needs to document where their data is being held, how clients engage with AI, and what their approach to data sharing will be.”
What’s next for AI in accounting?
Looking ahead, Chris sees AI enhancing accountants’ roles rather than replacing them. “The future of AI in accounting is about partnership. AI will make compliance and automation seamless, giving accountants confidence in their data and freeing them up for strategic advisory work.”
He predicts that AI will eventually eliminate many of the manual processes in financial reporting. “The concept of ‘month-end’ or ‘year-end’ could disappear, with transactions automatically categorised, validated, and processed in real time.”
Final thoughts
Chris believes that firms that embrace AI now will be best positioned for success. “With Making Tax Digital coming in 2026, every client relationship will need to be reviewed, repriced, and re-engaged. AI can help firms scale efficiently, improve client interactions, and stay ahead of regulatory changes.”
His message to firms still holding back? “AI is here to make your life easier. Start small, get comfortable, and let it do what it does best – giving you back time to focus on your clients and your business.”
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