Accounting technology / Glossary / Generative AI in accounting

What is generative AI in accounting?

Definition

Generative AI in accounting is the use of large language models, the technology behind ChatGPT, Claude and Copilot, to draft, summarise, research and analyse accounting work: writing variance commentary, answering client queries, reading contracts and invoices, researching standards and tax rules, and preparing entries for an accountant to review.

Also calledGenAI in accountingLLMs in accounting

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Mainstream since: Late 2022, after ChatGPT
Main risk: Confident errors
Category: Bookkeeping

How generative AI is used in accounting

The first wave, from late 2022, was general chat tools used for emails, spreadsheet formulas and research. The second puts language models inside accounting products. Close tools such as Numeric use them to explain variances and draft commentary; firm-focused products from Basis and Double (formerly Keeper) prepare work and handle client queries; Kick and Truewind categorise transactions and prepare the books; Quillon applies them to technical accounting research and memos. The limits are the same everywhere: models can be confidently wrong, so outputs need review, answers need traceable sources and client data must stay within approved tools.

Common questions

Can ChatGPT be used for accounting?+

For drafting, explaining and research, yes, with checking. Client data should go only into tools covered by the firm's agreement with the provider, and a chat tool does not replace accounting software.

Will AI take over accounting jobs?+

It is taking over tasks: categorisation, matching, first drafts and data entry. Review, judgement, client advice and sign-off stay with accountants, and the time saved tends to move to advisory work and larger client loads per person.

What is the difference between generative AI and AI accounting agents?+

Generative AI is the underlying technology. An agent uses it to carry out a multi-step task, such as reconciling an account or preparing a return, inside the accounting systems, with a person approving the result.