Is AI the Great Equalizer for Small Accounting Firms?
Small and mid-sized accounting firms have long operated in the shadows of the Big Four and larger regional firms, often competing for talent, technology, and market share on an uneven playing field. But with the rapid rise of artificial intelligence in professional services, the rules of the game may be shifting. And for smaller firms willing to rethink their strategies, this could be a moment of real opportunity.
According to recent headlines, a Belgian AI startup claims it can automate up to 80% of the work typically done at “expert firms.” Meanwhile, AI-powered tools branded as “your new AI accountant” are rapidly hitting the market. These technologies promise not only cost efficiencies but also speed, accuracy, and round-the-clock processing power—traits that could give smaller firms a competitive edge, if they’re willing to embrace the change.
A New Talent Pipeline—or Lack Thereof?
Historically, accounting firms have relied on a steady pipeline of associates to fuel the work. But if machines can now take on the bulk of transactional tasks, what does that mean for the traditional talent model? Without as many entry-level roles, how do we develop the next generation of leaders?
Smaller firms will need to think differently about professional development. Rather than relying on a traditional "learn by doing" model built around repetitive tasks, the focus may shift to mentorship, strategic thinking, and client engagement, skills that AI cannot replicate. The firms that succeed will be those that invest in accelerating human potential rather than just replacing it.
Culture and Change Capabilities – The Ultimate Super Power
AI doesn’t just change what gets done—it changes how firms operate. This includes how teams collaborate, how decisions are made, and how value is delivered to clients. Culture becomes even more important when technology is handling the “what” and humans are responsible for the “why.”
In this context, emotional intelligence, adaptability, and communication skills become premium assets. Senior employees who can guide change, lead teams, and build trust with clients will become more valuable than ever.
So how can small firms capitalize on this turning point?
Embrace AI as a Partner, Not a Threat
Pilot AI tools to free up time and focus on advisory services. Your size can actually be a strength—smaller teams mean faster implementation and less red tape.
Rethink Career Paths
With fewer transactional roles, career development must evolve. Create pathways that emphasize leadership, client service, and innovation.
Invest in Culture
Build a culture of learning and change-readiness. This includes reskilling your team, encouraging curiosity, and rewarding adaptability.
Double Down on Relationships
Technology may win on efficiency, but people still win on trust. Use the time saved by automation to build deeper relationships with clients and within your team.
AI won’t level the playing field overnight, but it might just shift the game in ways that give smaller firms new traction. For those willing to lead with intention and adaptability, the future isn’t just automated, it’s an endless field of possibilities.
what’s inside counts