AI in Accounting Market

AI in Accounting Market was valued at USD 986 million in 2020 and is expected to register a CAGR of 48.1% during the forecast period.

Introduction of the AI in Accounting Market Report

Artificial intelligence (AI) is a diverse branch of computer science concerned with building smart equipments capable of performing tasks that typically need human intelligence. As artificial intelligence has done for every sector, it’s making a noteworthy impact in the world of accounting and finance. From saving time and money and imparting insights, AI-enabled systems for accounting and finance are the way finance professionals and their firms will stay competitive and attract the next generation as employees and customers.

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Market Dynamic Key Drivers and Emerging Trends

Over the years, there has been considerable improvement made in Artificial Intelligence with respect to the accounting field that has substituted its focus from paper and pencil entry to software-based entry. It is applicable to all major parameters of accounting operations, added with its capabilities to reduce the tedious, rigorous nature of the activities involved. As with the AI ability to analyze huge volumes of data, detect anomalies in the system, optimize workflows while assuring speed and scalability is drawing the attention of financial professionals to adopt AI to support business decision-making based on insights driven from accounting data like transactional data, customer demographics in real-time. With the help of AI, the companies are able to execute cash flow forecasting, predict bankruptcy, detect frauds; hence thereby allowing the accountants to help clients respond against financial challenges before they become acute and adjust the expenditure accordingly. In 2020, according to a survey published by FreeAgent, 81% of accountants believed that levering AI would save up as much as 10 working hours per week by assisting them in automating the redundant tasks and would potentially unlock up to 68,163 pounds of additional income per year. Owing to these instances, companies are enhancing and implementing AI into their streamlined business functions with accounting on top of their list as it provides increased productivity, accuracy, and reduced cost, thereby driving the growth of AI in the Accounting Industry.

Restraint in the AI in Accounting Market

However, unskilled staff and uncertainties around the business case are the major restraining factors hampering the growth of the AI Accounting Market.

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Component – Segment Analysis

Based on the Component, the Services segment is expected to grow at a higher CAGR during the forecast period. The growth of this segment can be attributed to the rising deployment of AI in accounting software tools and systems, which is leading to high demand for pre-and post-deployment services. The solutions segment is forecasted to hold a larger market size due to the ease of combining pre-built solutions with existing accounting infrastructure. The rising number of innovations and collaborations in the accounting sector and the focus on automating repetitive accounting operations to enhance efficiency are also the factors contributing to the growth of AI in the accounting market size.

Technology – Segment Analysis

Based on the Technology, the NLP segment is expected to grow at a higher CAGR during the forecast period. With a rise in the amount of accounting data, data management will become a barrier for accounting departments. One of the main concepts of Natural Language Processing (NLP) is the capability to understand human speech. It is not impossible to implement voice control over multiple systems without NLP. Moreover, NLP provides users to integrate not only voice understanding into equipments and sensors but also localization features, resulting in creative translation. The application of NLP comprises machine translation, information extraction, report generation, acquiring data providing context, answering questions, and identifying the intent of the user. In accounting, NLP is utilized in the areas of invoice classification and interpretation and contract interpretation. With the rising variation in contract and invoice languages and formats, major AI in accounting vendors is focusing on offering NLP integrated systems. With the strengthening regulations and compliance landscape for data, the NLP technology in AI in accounting is growing at an outstanding rate.

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Regional – Segment Analysis:

Based on the region, the North-America region is projected to dominate the market during the forecast period. This can be attributed due to its dominance in AI and machine learning technologies. Also, most of the major market vendors in the market are US-based, which gives the region an innovative advantage. The regional governments are increasingly encouraging the adoption of AI, ML, and NLP technologies, resulting in the development of space for the market vendors to expand their presence in the region. The Vendors in the region are strategically partnering with each other to leverage their expertise and expand the AI in accounting market share. For instance, In February 2020, Intuit Inc procured Credit Karma, a consumer technology platform developer with more than 100 million users in Canada, US, and the UK. This acquisition has brought these technology players together to focus on a common vision that is to leverage the accounting sector of the region by helping the company to solve its financial problems.

Top Market Players

Various notable players operating in the market include Microsoft, AWS, Xero Limited, Intuit Inc., Sage Group plc, OSPLabs, UiPath, Kore, Inc., AppZen, Inc., YayPay Inc., among others. 

Key Developments:

• • In 2019, Intuit Inc. procured Origami Logic, a developer of an advanced data integration, ingestion, and analytics forum. The acquisition aligned with the company’s vision to become an AI-driven expert platform.
  • In 2019, UiPath collaborated with Bonitasoft, a provider of an open-source platform for business process automation, to upgrade a new level of integration of Robotic Process Automation (RPA) with Business Process Management (BPM). As per this collaboration, these companies would be able to develop flexible and resilient automation solutions, even though the underlying application does not have an API.

Segments covered in the Report:

The global Artificial Intelligence Accounting market has been segmented on the basis of Component, Deployment Mode, Technology, Enterprise Size, Application and regions. Based on Component, the market is segmented into Solutions and Services. The Solutions segment is further categorized into Software Tools and Platforms. The Services segment is further categorized into Professional Services and Managed Services. Based on Deployment Mode the market is segmented into Cloud and On-premises. Based on Technology, the market is segmented into Machine Learning (ML) & Deep Learning and NLP. Based on Enterprise Size the market is segmented into Large Enterprises and Small and Medium-sized Enterprises (SMEs). Based on Application, the market is segmented into Automated Bookkeeping, Invoice Classification and Approvals, Fraud and Risk Management, Reporting and Others. 

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Key questions answered in this research report:

• • At what pace is global AI in Accounting market growing? What will be the growth trend in the future?
  • What are the key drivers and restraints in AI in Accounting market? What will be the impact of drivers and restraints in the future?
  • What are the regional revenues and forecast breakdowns? Which are the major regional revenue pockets for growth in the global AI in Accounting market?
  • Which Component generated maximum revenues in 2019 and identify the most promising Component during the forecast period?
  • What are the various Deployment Mode areas of global AI in Accounting market and how they are poised to grow?
  • What companies are the major participants in this market and their business strategies, how does the competitive landscape look like?

Market Segmentation

Global AI in Accounting Market by Component

• • Solutions
    • Software Tools
    • Platforms
  • Services
    • Professional Services
    • Managed Services

Global AI in Accounting Market by Deployment Mode

• • Cloud
  • On-premises

Global AI in Accounting Market by Technology

• • Machine Learning (ML) & Deep Learning
  • NLP

Global AI in Accounting Market by Enterprise Size

• • Large Enterprises
  • Small and Medium-sized Enterprises (SMEs)

Global AI in Accounting Market by Application

• • Automated Bookkeeping
  • Invoice Classification and Approvals
  • Fraud and Risk Management
  • Reporting
  • Others

Global AI in Accounting Market by Region

• • North America AI in Accounting Market (Option 1: As a part of the free 25% customization)
    • North America AI in Accounting Market by Component
    • North America AI in Accounting Market by Deployment Mode
    • North America AI in Accounting Market by Technology
    • North America AI in Accounting Market by Enterprise Size
    • North America AI in Accounting Market by Application
    • US AI in Accounting Market All-Up
    • Canada AI in Accounting Market All-Up
  • Europe AI in Accounting Market (Option 2: As a part of the free 25% customization)
    • Europe AI in Accounting Market by Component
    • Europe AI in Accounting Market by Deployment Mode
    • Europe AI in Accounting Market by Technology
    • Europe AI in Accounting Market by Enterprise Size
    • Europe AI in Accounting Market by Application
    • UK AI in Accounting Market All-Up
    • Germany AI in Accounting Market All-Up
    • France AI in Accounting Market All-Up
    • Spain AI in Accounting Market All-Up
    • Rest of Europe AI in Accounting Market All-Up
  • Asia-Pacific AI in Accounting Market (Option 3: As a part of the free 25% customization)
    • Asia-Pacific AI in Accounting Market by Component
    • Asia-Pacific AI in Accounting Market by Deployment Mode
    • Asia-Pacific AI in Accounting Market by Technology
    • Asia-Pacific AI in Accounting Market by Enterprise Size
    • Asia-Pacific AI in Accounting Market by Application
    • China AI in Accounting Market All-Up
    • India AI in Accounting Market All-Up
    • Japan AI in Accounting Market All-Up
    • Rest of APAC AI in Accounting Market All-Up
  • RoW AI in Accounting Market (Option 4: As a part of the free 25% customization)
    • RoW AI in Accounting Market by Component
    • RoW AI in Accounting Market by Deployment Mode
    • RoW AI in Accounting Market by Technology
    • RoW AI in Accounting Market by Enterprise Size
    • RoW AI in Accounting Market by Application
    • Brazil AI in Accounting Market All-Up
    • South Africa AI in Accounting Market All-Up
    • Saudi Arabia AI in Accounting Market All-Up
    • UAE AI in Accounting Market All-Up
    • Rest of world (remaining countries of the LAMEA region) AI in Accounting Market All-Up

Major Players Operating in the AI in Accounting (Option 5: As a part of the Free 25% Customization – Profiles of 5 Additional Companies of your Choice)

• • Microsoft
  • AWS
  • Xero Limited
  • Intuit Inc.
  • Sage Group plc
  • OSPLabs
  • UiPath
  • Kore, Inc.
  • AppZen, Inc.
  • YayPay Inc.