Accenture predicts that by 2034, AI could help accountancy firms boost productivity by 40%. So, it might come as a surprise to learn that in today’s tech-enabled world, 48% of accountants claim not to be using AI at all.
The reason, according to Russell Frayne, Director of Transformation at Gravita, who recently appeared on a Silverfin webinar, is that many UK accounting firms are hesitant to fully adopt cloud technology. Despite the introduction of cloud-based solutions like Xero over a decade ago, only about 25% of firms have transitioned to the cloud. This reluctance hinders the widespread adoption of AI, which relies heavily on cloud infrastructure for data processing and automation.
As Frayne says, “the gulf between those firms that are tech enabled and those that aren’t will be very apparent. […] So for me and Gravita, the AI journey is one that we needed to get on as early as possible”.
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Overcoming the barriers to AI adoption
One of the reasons for the delay in cloud adoption is client led, says Frayne. “Some clients would still be quite happy to bring in a shoe box of receipts if we let them”. This hesitation has been exacerbated by the uncertainty surrounding AI – the fear that it might one day surpass human capabilities and even threaten livelihoods. But Frayne puts his own spin on this – while “technology should replace processes, not people, […] if you make yourself replaceable, you can be replaced by AI in the future”.
The reluctance of many firms to transition away from legacy systems and processes towards more innovative technologies is only widening the chasm between the firms that have adopted AI, and those that haven’t. By automating manual processes, accountants can free up time to focus on value-added services beyond compliance, like one-on-one conversations that get to the root of what a business really needs. And it’s these more ‘human’ interactions that clients appreciate, and which AI – even in its current state – can’t replicate.
To overcome the challenges to AI adoption, Frayne stresses the importance of “getting there early and getting it embedded in the mindset of the teams and where they work”. For companies that have been operating in a certain way for years, the prospect of change can be unsettling. But as Frayne quotes, “all transformation happens from the neck up. Which means it’s not about the technology, it’s the shift in mindset”.
That’s why, when it came to the Silverfin rollout, Frayne “spent a lot of time at the front end […] trying to build an understanding around why Silverfin, why the change, what does it mean for you and […] the future state.” This was also a valuable exercise in identifying where the big wins were for those accountants on the front line, and how they could unlock the most value from client data.
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Unlocking deeper insights from unified data
With data now being so fragmented, for Frayne, one of Silverfin’s unique selling points was the way the platform functions as an unstructured data aggregator, eliminating the need for customisation and manual API integrations for different clients. This simplifies the data management process by “pull[ing] everything together into one space […] from multiple sources and in different formats,” says Frayne. “You can pull so much more insight from that unified dataset.”
For Frayne, “the standardisation piece was key in selecting Silverfin” as it ensures that data handling processes are consistent across the organisation, which is fundamental to maintaining accuracy and efficiency as a business grows. “Standardisation is a top priority because it gives you consistency and scalability, and having a product that aggregates in the middle is absolutely key. Because, it then allows you to be front end agnostic with your client base as well”. This means no compatibility issues, no matter what front-end system is used. By utilising Silverfin’s platform, Gravita can be confident that the data will remain consistent and accessible at all times.
Accelerating innovation with the Silverfin Assistant
According to Frayne, the decision to partner with Silverfin was also driven largely by its AI proficiency. “[Silverfin’s] AI roadmap enabled me to start that journey quickly and then take full advantage of the benefits as they evolved”. This includes the Silverfin Assistant, an AI accounting tool that finds outliers, errors and opportunities in client files. For Frayne, “it felt right and aligned to the future of accounting – it sets us up to succeed”.
As for deploying the Silverfin Assistant, Gravita rolled out a training program for all members of its team to get acquainted with the new AI tool. Now, “we have regular catch-ups internally,” says Frayne. “I ask about the good, the bad, and the ugly in terms of what it’s surfacing, and then we feed that back to Silverfin – planning developments collaboratively”.
Poised for future success
Ultimately, leveraging the power of AI and tools like the Silverfin Assistant – which Frayne says already has a strong future offering – is allowing Gravita to automate manual tasks, free up their accountants’ time and focus on what really matters: building more meaningful relationships with clients. And by taking on a more advisory support role, accountants can focus on providing the insights that will inspire business owners to do more. As Frayne puts it: “If AI gives back time used to have contact points with your client – which means you understand them better and ask simple questions of their business – it’s a win”.
