Artificial Intelligence in Accounting Market - Global Industry Research Analysis

According to Market Research Store, the global artificial intelligence in accounting market size was valued at around USD 14.03 billion in 2023 and is estimated to reach USD 89.08 billion by 2032, to register a CAGR of approximately 22.80% in terms of revenue during the forecast period 2024-2032.

The artificial intelligence in accounting report provides a comprehensive analysis of the market, including its size, share, growth trends, revenue details, and other crucial information regarding the target market. It also covers the drivers, restraints, opportunities, and challenges till 2032.

Global Artificial Intelligence in Accounting Market: Overview

Artificial Intelligence (AI) in accounting refers to the use of AI technologies, such as machine learning, natural language processing, and automation, to streamline and enhance accounting processes.

AI can automate routine tasks like data entry, invoice processing, expense management, and financial reporting, allowing accountants to focus on more strategic tasks. It also helps improve accuracy in financial data analysis, fraud detection, and compliance management by analyzing large volumes of data quickly and spotting anomalies or patterns that humans might miss.

The market for AI in accounting is growing rapidly, driven by the increasing demand for automation, the need for greater efficiency, and the rising complexity of financial regulations.

Businesses are adopting AI tools to reduce human error, lower operational costs, and improve the speed and accuracy of their financial operations. Key applications include automated bookkeeping, payroll, tax preparation, auditing, and risk assessment.

Key Highlights

• The artificial intelligence in accounting market is anticipated to grow at a CAGR of 22.80% during the forecast period.
• The global artificial intelligence in accounting market was estimated to be worth approximately USD 14.03 billion in 2023 and is projected to reach a value of USD 89.08 billion by 2032.
• The growth of the artificial intelligence in accounting market is being driven by the increasing volume of financial data, the need for automation and efficiency, and the potential of AI to improve accuracy and decision-making.
• Based on the component, the software segment is growing at a high rate and is projected to dominate the market.
• On the basis of deployment mode, the cloud segment is projected to swipe the largest market share.
• In terms of organization size, the large enterprises segment is expected to dominate the market.
• Based on the technology, the machine learning segment is expected to lead the global market.
• By region, North America leads the AI in accounting market due to the high adoption of AI technologies by major accounting firms and large corporations.

Artificial Intelligence in Accounting Market: Dynamics

Key Growth Drivers

• Increasing demand for automation: The need to improve efficiency and reduce costs is driving the adoption of AI in accounting.
• Advancements in AI technology: Improvements in AI algorithms, machine learning, and natural language processing are enabling more sophisticated applications in accounting.
• Growing volume of financial data: The increasing amount of financial data generated by businesses is providing valuable training data for AI models.
• Need for improved accuracy and efficiency: AI can help reduce errors, improve accuracy, and streamline accounting processes.

Restraints

• High initial investment costs: Implementing AI solutions in accounting can be expensive, especially for smaller businesses.
• Data privacy and security concerns: The handling of sensitive financial data raises concerns about data privacy and security.
• Resistance to change: Accountants may be resistant to adopting AI technologies due to concerns about job displacement or the complexity of implementation.
• Technical challenges: Integrating AI with existing accounting systems and processes can be technically complex.

Opportunities

• Expanding applications in various accounting tasks: AI can be used for a wide range of accounting tasks, including data entry, financial analysis, fraud detection, and auditing.
• Integration with other financial technologies: AI can be integrated with other financial technologies, such as ERP systems and cloud accounting platforms, to create comprehensive solutions.
• Development of new AI applications: Innovations in AI can lead to the development of new applications specifically tailored for accounting, such as AI-powered financial advisors.
• Improved decision-making: AI can help accountants make more informed and data-driven decisions.

Challenges

• Market volatility: The market for AI in accounting can be subject to fluctuations due to economic conditions, technological advancements, and changes in regulatory requirements.
• Competitive landscape: The market is competitive, with numerous players offering AI solutions for accounting.
• Technological advancements: The rapid pace of technological advancements can make it difficult for companies to keep up with the latest innovations and maintain a competitive edge.
• Regulatory compliance: Adherence to financial regulations and accounting standards can be complex and costly for businesses implementing AI.

Artificial Intelligence in Accounting Market: Segmentation Insights

The global artificial intelligence in accounting market is divided by component, deployment mode, organization size, technology, application, and region.

Segmentation Insights by Component

Based on Component, the global artificial intelligence in accounting market is divided into software and service.

The Software segment dominates the Artificial Intelligence in Accounting Market due to the increasing demand for AI-powered tools that automate financial processes, reduce manual errors, and provide real-time financial insights. AI software is essential for improving efficiency in areas such as bookkeeping, audit, expense management, and financial analysis, making it the primary driver of AI adoption in accounting.

However, the Service segment plays a critical supportive role, particularly for companies that require external assistance to implement, integrate, and manage AI systems. Consulting, training, and ongoing support services are essential for ensuring that AI technologies are deployed effectively and continue to deliver value.

Segmentation Insights by Deployment Mode

In terms of Deployment Mode, the global artificial intelligence in accounting market is categorized into cloud and on-premises.

The Cloud segment is rapidly becoming the dominant deployment mode in the Artificial Intelligence in Accounting Market due to its flexibility, scalability, cost-effectiveness, and accessibility. Cloud-based solutions are particularly popular among SMEs and enterprises seeking lower upfront costs, ease of use, and the ability to scale as needed.

However, the On-premises segment remains relevant for larger organizations or those with strict data security and compliance requirements, offering more control over data and the ability to customize and integrate AI solutions with existing systems.

Segmentation Insights by Organization Size

The Artificial Intelligence in Accounting Market can also be segmented by organization size into two main categories: Large Enterprises and Small and Medium-sized Enterprises (SMEs).

The Large Enterprises segment dominates the Artificial Intelligence in Accounting Market due to their ability to invest in sophisticated AI technologies, integrate these solutions with existing systems, and customize them to meet complex business needs. Large enterprises typically adopt comprehensive AI accounting systems to handle the scale and complexity of their financial operations, manage compliance, and optimize decision-making processes.

However, the SMEs segment is rapidly expanding as cloud-based AI solutions become more affordable and accessible. SMEs are increasingly adopting AI to automate basic accounting tasks and improve efficiency, especially as they seek cost-effective solutions to support their growth.

Segmentation Insights by Technology

By technology, the artificial intelligence in accounting market can be segmented into two key categories: machine learning (ML) and natural language processing (NLP).

The Machine Learning (ML) segment dominates the AI in accounting market due to its wide range of applications, from automating routine tasks like data categorization to predictive analytics and fraud detection. ML's ability to process large datasets, detect anomalies, and continuously improve its predictions makes it essential for optimizing accounting processes.

However, Natural Language Processing (NLP) is rapidly growing, especially as the demand for document automation and virtual assistants increases. NLP’s ability to handle unstructured text data makes it invaluable for automating processes that involve contracts, invoices, and customer inquiries.

Segmentation Insights by Application

On the basis of Application, the global artificial intelligence in accounting market is bifurcated into automated bookkeeping, invoice classification and approvals, reporting, fraud and risk management, and others.

Fraud and Risk Management is a crucial application in the AI accounting market, given the importance of detecting and preventing fraudulent activities in real-time. This application has a significant impact on protecting businesses from financial losses and ensuring regulatory compliance. Fraud and Risk Management applications use AI to detect anomalies, identify patterns, and predict potential fraud or financial risks within accounting systems.

However, Automated Bookkeeping and Invoice Classification and Approvals are also widely adopted, especially for streamlining routine accounting tasks and improving efficiency. Automated Bookkeeping is one of the foundational applications of AI in accounting, especially for small and medium-sized enterprises (SMEs) that benefit from the automation of routine tasks. It reduces the time and effort needed for manual bookkeeping, making it a critical part of AI-driven accounting processes.

The Invoice Classification and Approvals segment is rapidly growing as businesses adopt AI to automate their accounts payable workflows, reduce processing time, and ensure accurate classification of invoices. This is especially important for large enterprises managing high volumes of invoices.

Artificial Intelligence in Accounting Market: Report Scope

Artificial Intelligence in Accounting Market: Regional Insights

• North America is expected to dominate the global market

North America holds the largest share of the AI in accounting market, accounting for approximately 41.2% of global revenue. This dominance is fueled by the presence of key technology companies like Microsoft, IBM, and Intuit, as well as the rapid adoption of AI solutions in accounting across the U.S. and Canada.

The region benefits from advanced technological infrastructure and significant investments in AI, especially for cloud-based and automated accounting services. Extensive use of AI to enhance financial reporting, fraud detection, and compliance with complex regulatory requirements is a key driver. The demand for AI-powered solutions is also increasing due to the need for operational efficiency and accuracy in handling large volumes of financial data​.

Europe is a significant market for AI in accounting, driven by strong regulatory frameworks and a growing focus on digital transformation in financial services. Countries like the United Kingdom, Germany, and France are leading the charge, with businesses increasingly adopting AI to enhance efficiency and reduce human errors in accounting processes.

Europe is witnessing increased demand for AI in areas like fraud detection and financial forecasting, with regulations such as GDPR influencing the adoption of secure AI-driven accounting platforms. The region’s high demand for automation in bookkeeping and financial reporting continues to support market growth​.

Asia-Pacific is expected to grow at the fastest CAGR from 2024 to 2032. The region is seeing rapid advancements in AI technology adoption, particularly in countries like China, India, and Japan. The growing digitization of businesses and a shift toward cloud-based accounting systems are driving the need for AI solutions. Increasing awareness of the benefits of AI, government initiatives promoting digital transformation, and a large base of small and medium-sized enterprises (SMEs) adopting AI-driven accounting tools contribute to the rapid growth.

Latin America and Middle East & Africa regions are emerging markets for AI in accounting, with growing adoption as businesses modernize their accounting practices. In Latin America, countries like Brazil are seeing increased demand for automation in financial services. The Middle East & Africa region is also showing potential due to increasing investments in AI and the push toward digital transformation in financial sectors.

Recent Developments:

• In May 2024, Accenture and Oracle announced a strategic collaboration to accelerate the adoption of generative AI (GenAI) in the financial sector. By leveraging Oracle Cloud Infrastructure (OCI) Generative AI, organizations can extract maximum value from their data.
• In February 2024, Sage Group PLC, a leading provider of accounting and business management software, introduced its new generative AI-powered productivity assistant. Designed to revolutionize accounting, finance, and people management processes, Sage Copilot automates tasks, identifies errors, and provides valuable insights to small business owners, CFOs, accountants, and HR leaders.
• In December 2022, EY formed a partnership with EXL to enhance digital transformation efforts in the financial services, insurance, and healthcare industries. This collaboration aims to leverage top-tier data analytics, digital transformation strategies, and operations management to fuel growth and cut costs.
• In November 2022, PwC expanded its consulting services by acquiring Sagence, a consulting firm specializing in data. This marked PwC's fourth technology-related acquisition within 18 months as part of its strategy to bolster its tech consulting portfolio.
• In October 2022, Deloitte strengthened its AI and data science capabilities by acquiring SFL Scientific, an award-winning consulting firm known for its expertise in AI strategy.

Artificial Intelligence in Accounting Market: Competitive Landscape

The report provides an in-depth analysis of companies operating in the artificial intelligence in accounting market, including their geographic presence, business strategies, product offerings, market share, and recent developments. This analysis helps to understand market competition.

Some of the major players in the global artificial intelligence in accounting market include:

• IBM
• AppZen
• AWS
• Bill.Com
• Botkeeper
• Deloitte
• EY
• Google
• Hyper Anna
• Intuit
• Kore.AI
• KPMG
• Microsoft
• MindBridge Analytics
• OneUp
• OSP
• PwC
• Sage
• SMACC
• UiPath
• Vic.AI
• Xero
• YayPay

The global artificial intelligence in accounting market is segmented as follows:

By Component

• Software
• Service

By Deployment Mode

• Cloud
• On-premises

By Organization Size

• Large enterprises
• Small and medium-sized enterprises

By Technology

• Machine Learning (ML)
• Natural Language Processing (NLP)

By Application

• Automated Bookkeeping
• Invoice Classification and Approvals
• Reporting
• Fraud and Risk Management
• Others

By Region

• North America
  • U.S.
  • Canada
• Europe
  • U.K.
  • France
  • Germany
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Rest of Latin America
• The Middle East and Africa
  • GCC Countries
  • South Africa
  • Rest of Middle East Africa

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