Transforming Indirect Tax: A Key Strategy for CFOs in Tech

Navigating Agentic AI and RPA: What Accountants Need to Know

Update Understanding the Future of Work in Accounting: AI vs RPAIn the fast-evolving landscape of accounting, two technological giants are making waves: agentic AI and robotic process automation (RPA). These innovations are not just adding efficiency to workflows; they are reshaping how accountants approach their work. With the Thomson Reuters’ 2025 State of Tax Professionals Report revealing that technology investment is a priority for nearly half of firms, understanding the nuances between these two technologies is crucial for staying competitive.What’s New in Automation?Traditionally, accountants have approached technological advancements with caution. However, the increasing demand for efficiency and cost-effectiveness has prompted an exploration into automation. RPA has been a go-to solution, automating repetitive tasks through predefined rules, but as agentic AI emerges, accountants find themselves at a crossroads. Agentic AI operates on a more advanced level, employing large language models (LLMs) to adapt and improve its performance autonomously. This shift from following set protocols to adapting and learning in real time marks a significant milestone in automation technology.The Differences Between Agentic AI and RPAWhile RPA focuses on executing step-by-step tasks reliably, agentic AI allows for strategic decision-making and problem-solving. For example, while RPA might automate the data entry process in tax filings, agentic AI can analyze tax-related data, provide insights based on market changes, and even suggest tax-saving strategies for clients. This adaptability makes agentic AI not just a tool but a potential partner in decision-making.Can AI Agents and RPA Coexist?Rather than viewing agentic AI and RPA as competitors, it’s beneficial to think of them as complementary. Many firms can integrate both technologies into their systems to maximize efficiency. RPA can handle repetitive tasks, free up time for accountants, and allow them to focus on higher-level tasks like strategy and advisory roles. On the other hand, agentic AI can take on more complex roles, helping professionals to make informed decisions that drive company growth.The Next Five Years: Predictions and OpportunitiesLooking ahead, the majority of professionals believe that AI will significantly impact the accounting sector. The Thomson Reuters report indicates that 80% of tax and accounting professionals anticipate transformative changes in their profession due to AI. Understanding how to leverage these technologies not only positions firms to boost profitability but also redefines the future landscape of the profession.Practical Tips for Embracing Automation in AccountingFor accountants pondering how to incorporate these technologies into their practices, beginning with a hybrid approach can be beneficial. Start with RPA for routine tasks, ensuring that workflows become more efficient. With success, explore the capabilities of agentic AI in more complex environments. Additionally, continuous training and upskilling will be vital to capitalize on the benefits these technologies can bring.Conclusion: The Path ForwardThe integration of technology in accounting is no longer a choice; it’s a necessity. By understanding the distinctions and synergies between agentic AI and RPA, accounting professionals can set their firms on a path toward improved efficiency and increased profitability. The future is bright for those who can adapt and embrace these transformative technologies.