Global AI in Accounting Market Overview:
AI in Accounting Market Size was estimated at 2.77 (USD Billion) in 2022. The AI in Accounting Industry is expected to grow from 3.48 (USD Billion) in 2023 to 27.0 (USD Billion) by 2032. The Artificial Intelligence in Accounting Market CAGR (growth rate) is expected to be around 25.56% during the forecast period (2024 - 2032).
Key AI in Accounting Market Trends Highlighted
The growing adoption of cloud-based accounting software and the increasing need for automation in accounting processes are driving the growth of AI in the accounting market. Moreover, the ability of AI to automate repetitive tasks, improve accuracy, and provide real-time insights is further fueling market growth. Additionally, the rising demand for data-driven decision-making in accounting and finance functions is creating opportunities for AI adoption in the market.
Furthermore, the integration of AI with emerging technologies, such as blockchain and data analytics, is expected to create new avenues for growth in the coming years. Recent trends in the AI Accounting market include the increasing adoption of AI-powered chatbots and virtual assistants for customer support and query resolution. Additionally, the use of AI for fraud detection and prevention is gaining traction as businesses seek to mitigate risk and protect their financial data.
Figure 1: AI in Accounting Market Overview
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Artificial Intelligence in Accounting Market Drivers
Rising Adoption of Cloud-Based Accounting Software
One of the key realities causing the growth in the AI in Accounting Market Industry is the increasing popularity of cloud-based accounting software. There are several reasons, such as increased flexibility, scalability, and accessibility, that businesses are obtaining cloud-based accounting software in larger quantities. The increase in the adoption of cloud-based accounting software by businesses of all sizes will also increase the demand for AI-powered accounting solutions.
AI-powered accounting solutions can help companies automate various routine and tiresome accounting tasks, such as data entry, invoice processing, and financial reporting. Doing so will allow the accounting staff to focus on more meaningful and “higher level” tasks, such as financial planning and analysis. Moreover, AI-powered accounting solutions can also enhance the accuracy and efficiency of the accounting process. Businesses all over the world are becoming more and more aware of the benefits of cloud-based accounting software, which suggests that their increased adoption represents a major opportunity for the growth of AI in Accounting Industry.
Increasing Complexity of Accounting Regulations
The increasing complexity of accounting regulations is one of the major drivers of global AI in the accounting market. In recent years, there have been a number of changes to the accounting regulations, such as the adoption of new accounting standards and the implementation of new tax laws. These changes make it more difficult for the businesses to comply with the accounting regulations.
The AI-powered accounting solutions help businesses comply with accounting regulations by automating a variety of compliance tasks. This, in turn, allows the accounting staff to focus on more complex tasks, such as interpreting accounting regulations and providing advice to the management. In addition, AI-powered accounting solutions help businesses identify and mitigate compliance risks.
Growing Demand for Real-Time Financial Insights
The growing demand for real-time financial insights is another major growth driver of global AI in the accounting market. Businesses are increasingly looking for ways to gain real-time visibility into their financial performance. This information can be used to allow businesses to make better decisions, identify trends, and improve their overall financial health.
AI-powered accounting solutions can help businesses gain real-time financial insight by automating a wide variety of data analysis tasks. This can allow accounting staff to focus on more strategic analysis and planning tasks, such as providing insights to management and developing financial plans. In addition, AI-powered accounting solutions can help businesses identify and mitigate financial risks.
AI in Accounting Market Segment Insights
AI in Accounting Market Deployment Insights
The deployment segment in the Global AI in Accounting Market is divided into cloud-based and on-premise. At the moment of the research, the cloud-based deployment model holds a larger market share, which is expected to continue in the future. The cloud-based AI solutions are popular and in demand because they are easily scalable and flexible, providing businesses with more options and requiring a smaller upfront investment. Such a model does not require businesses to build their on-premises infrastructure, so the implementation is suitable for smaller businesses and reduces their costs.
The report predicts that the cloud-based deployment is going to hold a market share of approximately 65% by the end of the forecast period. The on-premise deployment model is less popular and is expected to have a substantially smaller market share at the end of the forecast period. However, according to the reports, the on-premise deployment market share is predicted to be approximately 35% in 2026.
The reason behind such moderate growth of the deployment is the fact that it provides companies with more control over their data and security issues, so it is popular with companies that have to secure their data in accordance with specific regulations. Both models are expected to grow in the future due to the increased popularity of AI technologies in accounting. The Global AI in Accounting Market is also expected to expand substantially in the future.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
AI in Accounting Market Application Insights
The AI in Accounting Market segmentation by Application includes Financial Reporting, Tax Management, Payroll Management, Auditing, and Fraud Detection. Financial Reporting dominated in 2023 with over 35% and is expected to continue leading during the forecast period. Tax Management and Payroll Management follow as AI processes are used substantially for tax calculations and payroll. However, Auditing and Fraud Detection are expected to grow at an increasing pace with improved efficiency and accuracy owing to AI technology.
The market is primarily influenced by accounting automation needs, including cost reduction and improved accuracy. AI is an optimal tool for accountants as it enables the analysis of significant amounts of information alongside the identification of patterns. This prevents accountants from performing rudimentary tasks and enables them to focus solely on imposing strategies.
AI in Accounting Market Organization Size Insights
The AI in Accounting Market is segmented by organization size into Small and Medium-Sized Enterprises (SMEs) and Large Enterprises. The SME segment is expected to hold a significant market share in 2023, owing to the growing adoption of AI-powered accounting solutions by SMEs to streamline their accounting processes, reduce costs, and improve efficiency. The Large Enterprises segment, on the other hand, is projected to grow at a faster CAGR during the forecast period, driven by the increasing demand for advanced AI-based accounting solutions to enhance financial reporting, risk management, and compliance.
AI in Accounting Market Industry Insights
The AI in Accounting Market is segmented by Industry into Financial Services, Healthcare, Education, Government, and Manufacturing. Among these segments, the Financial Services segment is anticipated to hold the largest share of the market in 2023, accounting for around 30% of the Global AI in Accounting Market revenue. This dominance is attributed to the increasing adoption of AI-powered solutions by financial institutions to enhance efficiency, reduce costs, and improve customer service.
The Healthcare segment is projected to experience significant growth during the forecast period, owing to the rising demand for AI-driven applications in medical diagnosis, drug discovery, and personalized treatment plans. In 2023, the Healthcare segment is estimated to account for approximately 25% of the Global AI in Accounting Market. The Education segment is also expected to witness notable growth, with AI-enabled learning platforms and personalized educational content gaining traction. Government and Manufacturing segments are anticipated to contribute steadily to the overall market growth, with AI-powered solutions being adopted to improve operational efficiency, enhance decision-making, and optimize resource allocation.
AI in Accounting Market Functionality Insights
The Functionality segment of the AI in Accounting Market is segmented into Data Analytics, Machine Learning, Natural Language Processing, and Cognitive Computing. Data Analytics is expected to hold the largest market share in 2023 and is projected to continue its dominance throughout the forecast period.
The growing adoption of data analytics solutions by accounting firms to improve their efficiency and accuracy is driving the growth of this segment. Machine Learning is another rapidly growing segment, as it enables accounting firms to automate complex tasks and make more informed decisions. Natural Language Processing is also gaining traction, as it allows accounting firms to extract insights from unstructured data sources. Cognitive Computing is a relatively new segment, but it is expected to grow significantly in the coming years as it offers the potential to revolutionize the accounting industry. Overall, the Functionality segment of the Global AI in Accounting Market is expected to experience strong growth in the coming years. The growing adoption of AI solutions by accounting firms is driving this growth, as these solutions can help firms improve their efficiency, accuracy, and decision-making.
AI in Accounting Market Regional Insights
The Regional segment of the Artificial Intelligence in Accounting Market offers a comprehensive analysis of the market dynamics across key regions such as North America, Europe, APAC, South America, and MEA. The market growth in North America is driven by the early adoption of advanced technologies and the presence of major industry players. Europe follows North America, with a market size of 0.78 (USD Billion) in 2023, and it is expected to reach 4.9 (USD Billion) by 2032, growing at a CAGR of 25.56%. South America and MEA are also expected to contribute to the overall market growth, with their respective market valuations projected to reach 0.32 (USD Billion) and 0.29 (USD Billion) by 2032.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
AI in Accounting Market Key Players And Competitive Insights
Major players in industry are continuously focusing on expanding their global reach through strategic acquisitions and partnerships. Leading players are investing significantly in research and development to enhance their offerings and stay ahead of the competition. The industry is characterized by intense competition, with numerous emerging players and established vendors vying for market share. One of the competitors is Oracle, founded in 1977 and has its headquarters in the United States. Oracle is a multinational corporation that specializes in cloud engineering, autonomous databases, and software applications.
Oracle delivers a suite of AI-powered accounting solutions that are aimed to optimize financial processes and improve operational efficiency. Another prominent competitor in the same market is Intuit, founded in 1983 and headquartered in the United States. It is a global provider of financial software and services. Intuit’s QuickBooks is an AI-powered accounting platform designed to automate data entry, expense tracking, and financial reporting for small businesses and self-employed professionals. Xero is a cloud-based accounting software provider founded in 2006 and headquartered in New Zealand. Xero’s AI-driven accounting platform helps simplify and automate bookkeeping, invoice processing, and tax return filings. All of these major competitors are expanding the number of their products and constantly improving the existing offers to respond to the new needs of customers and to get a competitive advantage.
Key Companies in the AI in Accounting Market Include:
-
Oracle
-
SAP
-
Workday
-
Intuit
-
Zoho
-
Microsoft
-
Infor
-
Coupa
-
Xero
-
QuickBooks
-
NetSuite
-
FreshBooks
-
Sage
-
IBM
AI in Accounting Industry Developments
The Artificial Intelligence in Accounting market is projected to grow from USD 3.48 billion in 2023 to USD 27.0 billion by 2032, at a CAGR of 25.56%. This growth is attributed to the increasing adoption of AI in Accounting processes, such as invoice processing, financial reporting, and auditing. Additionally, the growing need for real-time insights and the ability to derive predictive analytics from accounting data are driving market growth. Recent news developments include the launch of new AI-powered accounting solutions by major vendors, such as SAP and Oracle, and the increasing adoption of cloud-based AI accounting solutions. Key players in the market include IBM, SAP, Oracle, Microsoft, and PwC.
Artificial Intelligence in Accounting Market Segmentation Insights
AI in Accounting Market Deployment Outlook
AI in Accounting Market Application Outlook
-
Financial Reporting
-
Tax Management
-
Payroll Management
-
Auditing
-
Fraud Detection
AI in Accounting Market Organization Size Outlook
AI in Accounting Market Industry Outlook
-
Financial Services
-
Healthcare
-
Education
-
Government
-
Manufacturing
AI in Accounting Market Functionality Outlook
AI in Accounting Market Regional Outlook
-
North America
-
Europe
-
South America
-
Asia Pacific
-
Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
2.77 (USD Billion) |
| Market Size 2023 |
3.48 (USD Billion) |
| Market Size 2032 |
27.0 (USD Billion) |
| Compound Annual Growth Rate (CAGR) |
25.56% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Oracle SAP, Workday, Intuit, Zoho, Microsoft, Infor, Coupa, Xero, QuickBooks, NetSuite, FreshBooks, Sage, IBM |
| Segments Covered |
Deployment, Application, Organization Size, Industry, Functionality, Regional |
| Key Market Opportunities |
Automated data entry.Improved accuracy and efficiency.Reduced costs.Enhanced fraud detection.Predictive analytics. |
| Key Market Dynamics |
Strong Adoption of Cloud Accounting Solutions.Growing Demand for Automation.Surge in Data Analytics Adoption.Rise in Cybersecurity Concerns.Technological Advancements in AI. |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Global AI in Accounting Market was valued at USD 3.48 billion in 2023 and is expected to reach USD 27.0 billion by 2032, exhibiting a CAGR of 25.56% during the forecast period.
North America held the largest market share in 2023, accounting for over 35% of the global market. Asia Pacific is expected to register the highest CAGR of 27.5% during the forecast period.
Some major applications of AI in Accounting include automated data entry, invoice processing, fraud detection, and financial planning and analysis.
Key players in the Global AI in Accounting Market include SAP SE, Oracle Corporation, IBM Corporation, Microsoft Corporation, and Google LLC.
The Global AI in Accounting Market is expected to grow at a CAGR of 25.56% from 2024 to 2032.
Factors driving the growth of the Global AI in Accounting Market include increasing adoption of cloud computing, growing need for automation and efficiency, and rising demand for data analytics.
Challenges faced by the Global AI in Accounting Market include concerns over data security and privacy, lack of skilled workforce, and high implementation costs.
Future trends in the Global AI in Accounting Market include increasing adoption of AI-powered accounting software, growing use of machine learning for data analysis, and rising demand for cloud-based accounting solutions.
AI is transforming the accounting profession by automating repetitive tasks, providing insights into financial data, and enabling accountants to focus on more strategic and advisory roles.
Ethical considerations of using AI in Accounting include ensuring data privacy and security, addressing potential biases in algorithms, and maintaining transparency and accountability in decision-making.
