The global artificial intelligence (AI) in accounting market is expected to grow from $666m in 2019 to $4,791m by 2024, at a compound annual growth rate (CAGR) of 48.4% during the forecast period. The major factors driving the growth of AI in accounting market include the growing need to automate accounting processes and the need for enhanced data-based advisory and decision making.
These are the key conclusions reached in the report, Artificial Intelligence in Accounting Market by Component, Deployment Mode, Technology, Enterprise Size, Application (Automated Bookkeeping, Fraud and Risk Management, and Invoice Classification and Approvals), and Region – Global Forecast to 2024, published by MarketsandMarkets.
The report segments the AI in accounting market into two categories: solutions and services. The solutions segment is estimated to hold a larger market size, which is driven by the ease of integrating pre-built solutions with existing accounting infrastructure. The growing number of innovations and partnerships in the accounting sector and the focus on automating repetitive accounting processes to enhance efficiency; are also the factors contributing to the adoption. The growth of the services segment can be attributed to the increasing deployment of AI in accounting software tools and solutions, which is leading to increased demand for pre- and post-deployment services.
The use of AI in accounting is increasing rapidly in the fraud and risk management application, owing to increasing data related financial frauds and the need for enhanced data accuracy and protection. This technology has the capability to handle and evaluate unstructured data and identify threats. Natural Language Processing (NLP) uses advanced algorithms to analyse text to derive insights and sentiment from unstructured data.
The report identifies North America is a major revenue generating region for the AI in accounting market. The region is considered the most advanced in terms of technology adoption and infrastructure. The wide presence of key industry players offering AI in accounting solutions and services is the key driving factor for the growth of the AI in accounting market. Enterprises in the region are leveraging AI, Internet of Things (IoT), and Machine Learning (ML) and deep learning technologies in their business processes to gain a competitive edge in the market. Accounting departments and firms in the region are automating tedious and repetitive processes to make their work easier and optimizing the efficiency of financial processes. Some of the significant application areas where the North American AI in accounting vendors' focus would be, is looking forward to including fraud and risk management, invoice classification and approvals, and automated bookkeeping applications.
The major AI in accounting vendors include Microsoft (US), AWS (US), Xero (New Zealand), Intuit (US), Sage (England), OSP (US), UiPath (US), Kore.ai (US), AppZen (US), YayPay (US), IBM (US), Google (US), EY (UK), Deloitte (US), PwC (UK), KPMG (Netherlands), SMACC (Germany), OneUp (US), Vic.ai (US), Hyper Anna (Australia), Botkeeper (US), MindBridge Analytics (Canada), and Bill.com (US).