A new study from Thomson Reuters comes with a stark warning to the tax and accounting industry: firms without artificial intelligence strategies could fall irrevocably behind in the next 12 months as competing firms leverage the technology to transform faster, serve better and hire smarter.
The 2025 Future of Professionals report reveals a concerning divide in the industry, with 40% of tax and accounting firms having no significant AI adoption plans. The data shows firms with AI strategies are experiencing return on investment at 3.1 times the rate of their non-adopting peers—86% versus just 28%—highlighting the growing performance gap between firms.
“We’re seeing a perfect storm in the tax and accounting industry: while our research shows professionals expect to save 240 hours annually through AI, more than half of tax firms report critical skills gaps and four in ten have no AI strategy at all. This isn’t just a competitive disadvantage—it’s an existential threat,” says Elizabeth Beastrom, president of tax and accounting professionals at Thomson Reuters. “Firms that don’t develop AI strategies and address capability gaps in the next 12 months risk falling seriously behind. The good news is the roadmap exists, but the window for action is rapidly closing.”
The efficiency revolution
Survey respondents predict AI will save professionals 5 hours weekly, translating to 240 hours annually per professional. This efficiency gain represents an average annual value of $19,000 per professional and contributes to a combined $32 billion annual impact across the legal and tax accounting sectors in the United States alone.
Skills gap creates implementation barrier
The study reveals a critical paradox facing the industry: while firms need AI to remain competitive, many lack the human capital necessary for effective implementation. 53% of tax firms report significant skills gaps, creating a barrier to adopting the very technology they need to compete.
The challenge is compounded by generational differences in digital readiness. The research shows Gen Z professionals are twice as likely as Baby Boomers to identify skills gaps as obstacles to AI adoption, underscoring the need for cross-generational training programs as firms prepare to scale AI solutions.
Perfect storm threatens industry laggards
The research indicates that success in the evolving tax and accounting landscape will depend not just on adopting AI technology, but on developing comprehensive strategies that address both technological implementation and workforce development challenges.
To access the full report, visit https://www.thomsonreuters.com/en/c/future-of-professionals.
