TORONTO (12th September 2024) – Sage, the leader in accounting, financial, HR, and payroll technology for small and medium-sized businesses (SMBs), has today unveiled its vision of how AI will reshape the accounting industry by 2030, with findings from their Forrester Consulting study.
A new Forrester Consulting study of 2,339 SMB finance leaders, commissioned by Sage reveals how AI will unlock real-time insights, enhanced risk management, and strategic decision-making capabilities. Using these insights, Forrester made five predictions for how the financial function for SMBs could look by 2030.
“For centuries, the accounting industry has relied on processes that provide a point-in-time snapshot of financial health. AI is ushering in a new era of continuous accounting, continuous assurance, and continuous insights," said Aaron Harris, Chief Technology Officer at Sage. "This shift will empower businesses with unparalleled operational efficiency, improved compliance, robust risk management, and more accurate financial forecasting.”
Predictions for the AI-Powered Accounting Landscape of 2030:
“While AI will ultimately be used to monitor all business activity and discover opportunities and risk in real-time, it will still play a supporting role in the industry, with outcomes and decisions always residing with a human,” Harris continues.
Canada’s Leadership in Ethical AI and Strategic Innovation
Canada is positioning itself as a leader in ethical AI adoption, with 76% of firms engaged in regular ethics training and 69% having established formal AI ethics policies. This strong commitment to ethical governance reflects Canada’s approach to addressing the operational and ethical implications of AI, ensuring that AI technologies are deployed responsibly and transparently.
Canada is also at the forefront of AI-driven forecasting and planning, with 31% of businesses reporting significant improvements in accuracy due to AI integration. This advanced use of AI highlights Canada's strategic focus on leveraging technology for enhanced decision-making and financial performance.
However, Canada shows potential vulnerabilities in data security, with 21% of firms reporting no specific measures in place to manage AI-related security and privacy risks. Addressing these gaps will be essential as Canada continues to scale its AI initiatives.
"There is an abiding sense of optimism around the potential that AI presents in terms of enhancing complex accounting tasks; and that potential is coming into sharper focus with more practical experience.
It’s also positive to see that organisations are planning a strategic and collaborative approach to managing ethical challenges, which speaks to some of the hallmarks of the profession. There is a real opportunity to level-up based on securing the ethical standards, professional judgement, and human insight that make accountancy and finance professionals trusted sources of data and insight.
By embracing AI technologies thoughtfully and strategically, the accounting profession can enhance capabilities, deliver greater value to clients, and play an even more crucial role in guiding business decision-making," said Alistair Brisbourne, Head of Technology Research, Policy & Insights at ACCA
Sage's vision for the future of accounting emphasises the importance of ethical AI integration and building trust in AI-powered solutions, such as Sage Copilot. Sage is committed to working with small businesses to navigate this transformative period and harness the full potential of AI to drive success.
Sage commissioned Forrester to conduct a survey to investigate the impact of AI adoption on accounting functions within SMBs globally, and test the following hypothesis:
The adoption of artificial intelligence (AI) in accounting significantly enhances operational efficiency, financial accuracy, and strategic decision-making across small to medium-sized businesses (SMBs). This hypothesis suggests that SMBs utilizing AI-driven accounting tools will experience substantial improvements in data processing speeds and accuracy, leading to better compliance, risk management, and financial forecasting.
A total of 2,339 completed surveys were collected from finance and accounting professionals, including roles such as Head of Accounting, Senior Accountant, Director, Treasury, CFO, and Business Owner. Participants were drawn from eight countries: the United States (N=513), United Kingdom (N=260), France (N=258), Canada (N=259), Spain (N=258), Portugal (N=257), Germany (N=257), and South Africa (N=277). While the study targeted SMBs with 10 to 499 employees, no specific industry quotas were implemented. The survey was conducted in August 2024.
Sage exists to knock down barriers so everyone can thrive, starting with the millions of Small and Mid-Sized Businesses served by us, our partners and accountants. Customers trust our finance, HR and payroll software to make work and money flow. By digitizing business processes and relationships with customers, suppliers, employees, banks and governments, our digital network connects SMBs, removing friction and delivering insights. Knocking down barriers also means we use our time, technology and experience to tackle digital inequality, economic inequality and the climate crisis.