WOLTERS KLUWER: AI ADOPTION QUADRUPLES AS FIRMS SHIFT TO ADVISORY GROWTH

KUALA LUMPUR, Oct 9 (Bernama) -- Artificial intelligence (AI) adoption among tax and accounting firms has surged from nine per cent in 2024 to 41 per cent in 2025, according to the Future Ready Accountant report by Wolters Kluwer Tax & Accounting.

The 2025 report also shows that 77 per cent of firms plan to increase AI investment, with 35 per cent already using it daily. This marks a pivotal shift in the global accounting landscape, as firms embed AI into core workflows to enhance client service, automate tasks, and generate strategic insights that are reshaping engagement models.

“Firms are moving beyond tactical fixes to embrace long-term strategies centred on advisory services, talent development, and technology integration. AI is no longer a future consideration; it is a present-day imperative that firms need to embrace not just to survive but to thrive and grow.

“This report is important to the tax and accounting industry because it not only captures global trends but also provides regional insights, empowering firms to tailor their strategies to specific market needs and navigate the significant shifts reshaping the profession,” said Wolters Kluwer Tax & Accounting Chief Executive Officer, Jason Marx in a statement.

Globally, 83 per cent of firms reported increased revenue, up from 72 per cent the previous year, while 79 per cent saw improved profitability, demonstrating strong momentum across regions including Asia Pacific, North America, and Europe.

Advisory services have also become mainstream, with 93 per cent of firms now offering them, up from 83 per cent in 2024, with nearly half planning to expand offerings in the next year. This shift is being driven in part by growing client expectations, as 35 per cent of clients are actively seeking strategic business advice from their firms.

On the technology front, 52 per cent of firms adopted or expanded cloud-based solutions, and 47 per cent plan to increase workflow automation and improve digital client communications. Notably, 87 per cent of firms with highly integrated technology systems (at least 75 per cent integration) reported revenue growth.

The report also highlights a shift in talent strategies, from reactive hiring to strategic enablement, with firms investing in flexibility, automation, and advanced skills development. In fact, 31 per cent of firms globally cited the development of advanced technical skills as a top staffing challenge, up from 27 per cent in 2024.

Based on insights from over 2,700 professionals worldwide, Future Ready Accountant delivers a data-driven analysis of how the global tax and accounting profession is evolving to meet rising client expectations, embrace advanced technologies, and build more resilient, insight-led business models.

-- BERNAMA