The key actions UK accounting and tax firms must take when adopting AI

Despite this pickup in investment, Thomson Reuters’ Future of Professionals 2025 report shows that only 14% of tax and accounting firms globally have a visible AI strategy in place. 44% are adopting AI tools without a strategy, while 40% have no significant plans to adopt AI tools.

Having a clear AI strategy matters, as firms with an AI strategy are more than three times as likely to already be experiencing at a return on investment (ROI) from their AI spend. 86% of tax and accounting firms with a visible AI strategy say they are already enjoying a return from their AI investment. This falls to 69% for firms adopting AI tools without a strategy.

To ensure AI adoption is smooth, firms must take a structured approach. The six key steps for tax and accounting firms are:

1. Align your AI adoption strategy with your firm’s overall strategy. For example, if your business strategy is geared towards delivering growth rather than cost cutting then your use of AI should also prioritise the delivery of growth.
2. Start by piloting projects with AI tools in targeted areas.
3. Choose technology carefully to support your firm’s work and deliver on client expectations.
4. Invest in training so your firm’s professionals can use AI responsibly.
5. Develop clear governance frameworks to ensure responsible use and data security.
6. Set objective KPIs e.g. time savings, error reduction and client satisfaction, to measure ROI – in turn iterating and adapting your firm’s use of AI.  

Selecting the right AI tools is critical to long-term success. Our research highlights five evaluation criteria that firms must apply: accuracy, security, implementation, usability and workflow fit. Leaders should ask technology providers to demonstrate proof of accuracy rates and explain how outputs are verified. They must also check that data protection standards such as GDPR compliance are in place.

Implementation should be straightforward, with clear timelines for integration. Just as important, the technology must be easy for professionals to use and deliver measurable efficiency gains. Finally, the tools must align with existing workflows to fully enhance day-to-day practices. Making the wrong choice here risks wasted investment and stalled adoption. 

The latter are the cases that tend to make headlines. The news last year that a Hong Kong finance worker was tricked into sending $25m to fraudsters by a deepfake video call, broke the topic out of its niche and into the mainstream. The trouble is, most fraud is much less flashy. Retail Banker International reported in March that ID fraud may account for half of all bank-related fraud by 2025.  

Explaining why this is an issue, Rehaks said, “There are a couple of high-profile cases where someone steals $25m, and that’s nice, but typical cases that we hear about every day range from $5,000 to $50,000. If you lose that much money, it doesn’t make the news, but the real news is how normal this crime is. If you look at the rates where these crimes are investigated and they apprehend the perpetrators, they are essentially zero.

“Typically, this means someone walking away with the money, and not much money left for the victim. There are some exceptional cases where the gangs get prosecuted, but most of the crime is targeting different countries for political reasons, and convincing police to investigate a case that spans multiple countries and makes them do 60 different paperwork requests in five different languages is very hard. They are trying to combat the crimes of the 21st century using the means of the 19th.

Strong governance is the foundation of responsible AI adoption. Firms must create clear policies on how client data is used and protected. They need processes to verify the accuracy of AI outputs and to ensure compliance obligations are met.

Governance also means appointing individuals to oversee responsible use and provide accountability. For clients, governance is the crucial assurance that the advice they receive is accurate, compliant and based on trusted data. Without these guardrails, firms risk regulatory breaches, reputational damage and the erosion of client trust. By contrast, good governance builds confidence in the use of AI for both accountants and clients. 

Clear KPIs are essential if firms are to demonstrate the impact of AI. Yet only 31% of professionals in UK tax and accounting firms told us they have a personal goal related to AI adoption. Without KPIs, firms cannot prove benefits to clients or measure progress internally.

Useful KPIs for tax and accounting firms include hours saved on tax returns, reduced compliance errors, improved client satisfaction and additional revenue per professional. Our research found that UK tax firm professionals could each unlock £6,500 in productivity savings annually by adopting AI tools.

By tracking such measures, firms can demonstrate tangible gains in efficiency, accuracy and client service. 

To demonstrate ROI, firms must measure AI against their core business goals. This means tracking revenue growth, improvements in client satisfaction and greater operational efficiency.

Tax and accounting firms with clear AI strategies are 1.7x as likely to achieve revenue growth from AI as those adopting new technology without a strategy. This shows that adoption alone is not enough. By linking AI adoption to their goals, firms can show clients or partners that the technology is delivering real value.

Measuring ROI must go beyond just cost savings. ROI should also be measured by the ability to expand advisory services, respond faster to clients and compete more effectively in the market. 

AI also has a critical role in helping firms attract and retain talent. By automating repetitive tasks, professionals gain more time to focus on advisory work that is valued by clients.

Junior staff can use AI-powered knowledge tools to answer technical questions, helping them learn faster and build confidence. This not only improves career development but also strengthens client service. When staff are freed from routine work, they can concentrate on more strategic-level work and personalised advice.

Ultimately, AI enhances client service by ensuring that professionals spend more time on high-value, insight-driven work – and less on repetitive processes.

The message to firms is this: don’t let perfect be the enemy of good. When you identify a strategy and tools that have stood up to scrutiny and meet your needs – then implement those with confidence. The competitive advantage gained from implementing AI now will likely outweigh the marginal benefits of continuing your search indefinitely. 

Main image: Elizabeth Beastrom, President of Tax and Accounting Professionals, Thomson Reuters.