Responsible AI tops Sage’s future of accounting predictions, with over 80 percent of businesses embracing ethical AI and ditching the outdated monthly close for real-time financial insights. Even so, Sage CTO Aaron Harris believes decisions always reside with a human.
Sage has revealed its vision of how AI will reshape the accounting industry by 2030, with findings from their Forrester Consulting study.
The study polled 2,339 small and medium business (SMB) finance leaders about how AI could unlock real-time insights, enhanced risk management and strategic decision-making capabilities.
Sage chief technology officer (CTO) Aaron Harris commented, “For centuries, the accounting industry has relied on processes that provide a point-in-time snapshot of financial health. AI is ushering in a new era of continuous accounting, continuous assurance, and continuous insights. This shift will empower businesses with unparalleled operational efficiency, improved compliance, robust risk management, and more accurate financial forecasting.”
Sage's predictions for the AI-powered accounting landscape of 2030:
- Prediction 1: Ethical AI leadership will be a priority: with 80 percent of SMBs having adopted robust AI ethics policies, by 2030 ethical AI will be non-negotiable. However, businesses won't just adopt ethical AI policies – they will become the leading force in ethical AI assurance.
- Prediction 2: There will be a total overhaul of risk management: over 90 percent of SMBs globally leverage AI for continuous monitoring and anomaly detection, reducing financial errors and fraud by over 95 percent. This will represent a reinvention in risk management.
- Prediction 3: The end of the monthly close: real-time data will replace the traditional monthly close, with 75 percent of SMBs transitioning to dynamic, continuous accounting practices. The transition hinges on the success of continuous assurance. As AI revolutionises risk management, real-time reconciliation and other assurance capabilities will become possible.
- Prediction 4: Real-time data will fuel finance decisions: over 70 percent of SMBs will integrate real-time data into financial decisions, empowering them to drive growth and innovation helping them thrive in the competitive landscape of 2030.
- Prediction 5: Increased creation of new roles and opportunities for accountants: AI will automate routine tasks, freeing up accountants to focus on strategic thinking and providing valuable business insights. This transition will create opportunities for accountants to leverage their expertise in new ways, driving business strategy and innovation.
“While AI will ultimately be used to monitor all business activity and discover opportunities and risk in real-time, it will still play a supporting role in the industry, with outcomes and decisions always residing with a human,” Aaron adds.
In South Africa, SMBs are demonstrating a forward-thinking approach to the integration of AI in accounting. The Forrester study reveals that a remarkable 81 percent of South African SMBs have already implemented robust AI ethics policies, signifying a deep commitment to responsible AI adoption. This ethical foundation is further strengthened by the proactive approach to risk management, with 69 percent of businesses fully leveraging AI for continuous monitoring and anomaly detection.
