Artificial intelligence in accounting: opportunities, risks, and the road ahead
Artificial intelligence (AI) is one of the most relevant and trending topics in society today. It is increasingly becoming a part of our daily lives, both at work and at home. It is therefore no surprise that it will be one of the key trends in accounting in 2026. Process automation, the detection of data anomalies, as well as forecasting and analytics are just a few of the capabilities offered by AI.
However, it is human nature to be cautious of the unfamiliar and often wait until there are enough practical examples before deciding whether to integrate new tools into daily routines. It is therefore not surprising that a study conducted by Norstat revealed that in 2024, only 8% of Latvian companies were using AI in their accounting processes. Yet, this statistic cannot be viewed in isolation from the broader business landscape and how it is adapting to this new era.
Artificial Intelligence in Latvia: Current Situation and Future Direction
While it may seem that artificial intelligence has been part of our lives for years—and in a sense, it has—the true revolution in this field only occurred in 2022, when the OpenAI version of the well-known ChatGPT became publicly available. Consequently, the changes in our lives have been very rapid, and it is not surprising that we are adopting them gradually.
Nevertheless, we are moving in a direction where AI is doing more and more on our behalf. This is also evidenced by Eurostat data — in 2024, 13.5% of companies in the European Union used artificial intelligence in their operations, which is significant progress compared to 2023, when only 8% of companies used AI. Latvia is not far behind the average; in 2023, it was used by 4.53% of companies, rising to 8.83% in 2024. This represents one of the fastest growth rates in the EU. It is important to note that these data are based on the extent and depth of AI integration within various systems; simply using ChatGPT is not sufficient.
The process is underway, as confirmed by data from the study "The Digital Portrait of a Manager 2025." Business leaders and employees were asked which responsibilities they would like to entrust to AI. Administrative tasks clearly dominated: human resources (19.76%), office administration (18.29%), and accounting (13.57%). Interestingly, managers are more interested in using AI for accounting (15.47%) than employees are (11.39%). To understand why, let us examine the benefits and potential risks of using artificial intelligence in accounting processes.
Advantages of AI in Accounting
Modern accounting is unimaginable without technology, ranging from Excel to specialized accounting software. Here, AI becomes a trusted assistant, easing routine work and providing valuable support for decision-making.
- Automation and Streamlining Routine Tasks
AI is capable of taking over time-consuming, repetitive tasks, such as data entry, invoice reconciliation, and account verification. This saves time and reduces the likelihood of errors. A study by Zenceipt showed that AI reduced document entry time from approximately 15 minutes to less than 30 seconds, freeing up staff time for other responsibilities.
- Data Analysis and Forecasting
Thanks to AI's ability to process vast amounts of data, it is becoming increasingly easy to identify trends and model potential future scenarios. This allows accountants to create more accurate financial forecasts and enables business leaders to make data-driven decisions.
- Risk Management and Regulatory Compliance
AI monitors transactions in real-time, allowing for much faster detection of suspicious activity, invoice discrepancies, and errors. It can also automatically prepare reports, which simplifies the filing of tax returns. Particularly useful is the ability to set reminders for deadlines, which are critical in accounting.
- Strategic support and competency transformation
By processing large volumes of data, preparing reports and documents, and identifying trends, AI will enable accountants to transition into a role of strategic support. 57% of executives who have implemented AI in finance report improved employee productivity and a positive ROI.
AI risks in accounting
While artificial intelligence brings efficiency and enhanced precision to accounting, it also raises concerns regarding data security, management, and the reliability of the information provided.
- Data quality and availability
Artificial intelligence relies on the data it is fed. If that data is not high-quality, structured, and consistent, the result can be flawed forecasts or inaccurate analysis. Furthermore, AI may overlook the absence of critical data that could fundamentally change the outcome, potentially leading to incorrect decisions.( MDPI, 2024 )
- Privacy and security
The most frequently cited risk associated with AI is that people are increasingly inputting sensitive data that should not be widely accessible. Therefore, when implementing artificial intelligence in a company, it is essential to establish data security mechanisms that prevent information leaks. Every reliable AI tool has settings that prevent it from using information for further training, but these must be enabled. If a company fails to ensure its data is secure, it could lead to major breaches and even litigation.
- Insufficient human oversight
Although there were many bold claims that AI would replace humans in many fields, that is not possible—at least not at this time. Like humans, AI is prone to errors, and the consequences can be severe. This is precisely why AI will never replace the accountant; regular manual checks are necessary to prevent situations where non-existent data or incorrect interpretations are used. ( Indonesia Auditing Research Journal, 2024 ) There are often situations where AI cannot account for all the factors that may influence a result; the final decision must always rest with a human.
- Shifting employee competencies and experience
As with any new technology, achieving the best results from AI requires knowing how to use it. Accountants must acquire new skills to fully leverage the opportunities it offers. This can cause resistance, especially if an employee has been satisfied with their current way of working. If an accountant is not open to the idea of integrating AI into their workflow, it will not be effective.
The future of accounting in the age of AI
It is clear that there is caution toward AI from both employees and executives, albeit for different reasons. While accountants are concerned about potential job loss and the need for new skills, executives are focused on data security and quality to ensure informed decision-making.
Standing still, however, prevents progress. While slow, attitudes toward AI are shifting, and an increasing number of people are prepared to learn how to use it effectively. This is supported by data from the "Digital Portrait of a Leader 2025" study, which shows that AI proficiency has become the most in-demand workplace skill, already mastered by 24.8% of all respondents. Furthermore, 33.9% of respondents expressed a desire to acquire or improve these specific digital skills in the coming years. This is particularly critical for managers, with 38.2% of those surveyed in this group expressing such an interest.
Numerous accounting software platforms already offer ways to automate routine tasks, such as data entry, invoice verification, and expense processing. This does not mean that AI will replace accountants. It is here to help reduce administrative burdens and identify errors or discrepancies, allowing professionals to dedicate more time to high-value tasks. The ability to keep pace with the times is always valued and will become even more significant in the coming years.
Frequently Asked Questions
How can artificial intelligence assist with accounting processes and daily tasks?
AI can automate routine tasks such as data entry, invoice verification, account reconciliation, and document processing, which significantly saves time.
Can artificial intelligence replace an accountant?
No, AI primarily automates routine tasks like data entry and document processing, while strategic decision-making, interpretation, and accountability remain the responsibility of the human accountant.
What are the main risks and challenges of implementing AI in accounting, and how can they be managed?
The main risks include data quality issues, privacy and security concerns, algorithmic bias, and insufficient employee skills. These can be managed by ensuring high-quality and structured data, regular human oversight, clear security protocols, and employee training in the use of AI tools.
