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:
- Prediction 1: Ethical AI Leadership will be Priority: With 80% of SMBs having adopted robust AI ethics policy, by 2030 ethical AI will be non-negotiable. However, businesses won’t just adopt ethical AI policies – they will become the leading force in ethical AI assurance.
- Prediction 2: There will be a Total Overhaul of Risk Management: Over 90% of SMBs globally leverage AI for continuous monitoring and anomaly detection, reducing financial errors and fraud by over 95%. This will represent a reinvention in risk management.
- Prediction 3: The End of the Monthly Close: Real-time data will replace the traditional monthly close, with 75% of SMBs transitioning to dynamic, continuous accounting practices. The transition hinges on the success of continuous assurance. As AI revolutionises risk management, real-time reconciliation and other assurance capabilities will become possible.
- Prediction 4: Real-time Data will Fuel Finance Decisions: Over 70% of SMBs will integrate real-time data into financial decisions, empowering them to drive growth and innovation helping them thrive in the competitive landscape of 2030.
- Prediction 5: Increased Creation of New Roles and Opportunities for Accountants: AI will automate routine tasks, freeing up accountants to focus on strategic thinking and providing valuable business insights. This transition will create opportunities for accountants to leverage their expertise in new ways, driving business strategy and innovation.
“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.
In South Africa, SMBs are demonstrating a forward-thinking approach to the integration of AI in accounting. The Forrester study reveals that a remarkable 81% of South African SMBs have already implemented robust AI ethics policies, signifying a deep commitment to responsible AI adoption. This ethical foundation is further strengthened by the proactive approach to risk management, with 69% of businesses fully leveraging AI for continuous monitoring and anomaly detection.
This focus on ethical AI and robust risk management positions South Africa as the leading region among the SMBs that participated in the research. However, the study also highlights the need for continued investment in employee training, as 29% of SMBs have yet to implement comprehensive AI education programs. Bridging this skills gap will be crucial for South Africa to fully realise the transformative potential of AI in accounting and maintain its leading position.
“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.
