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Modern Accounting: How Microsoft AI is Powering Smart Finance

From Ledgers to Strategic Advisory: Accounting's evolution how tools like Azure OpenAI are reshaping finance functions.

February 14, 2025

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AI is coming for the bean counters—but not in the way you think. While many fear automation will replace accountants, the real shift is towards AI-powered advisors who can spot financial risks before they happen.

In this Thursday’s newsletter:

✅ How AI is transforming accounting workflows with real-time insights
✅ The rise of "AI co-pilots" for financial planning and audits
✅ Why firms using AI see faster decision-making and better client retention

Let’s dive in. 👇

AI-Powered Accounting is Here

AI adoption in finance & accounting

💡 What’s happening?
Accounting firms and CFOs are increasingly using AI tools like Azure OpenAI to automate workflows, detect fraud, and forecast financial risks.

📊 Key data points:

  • 78% of finance teams plan to invest in AI-powered analytics in 2025 (Deloitte).

  • AI-assisted audits can process 10x more transactions than traditional sampling methods.

  • AI tools reduce month-end close time by up to 40%.

🌊 Meta Trend: AI-driven automation is reshaping professional services, from law to consulting.

🔗 Learn More

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Accounting Startups Are Attracting Big Investments

Includes equity financings into VC-backed companies headquartered in the US.

💡 What’s happening?
Investors are betting big on AI-powered accounting startups, fueling a new wave of automation-driven platforms.

📊 Key data points:

  • AI accounting startup Basis just raised $34M for an "AI financial agent" (Reuters).

  • AI-driven compliance software firms are growing 3x faster than traditional players.

  • Venture capitalists see accounting as one of the biggest "AI upgrade" opportunities.

🌊 Meta Trend: AI is moving beyond tech startups and into legacy industries like finance, law, and healthcare.

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AI Won’t Kill the CPA, But It Will Change the Job

What Finance and Accounting Functions to Automate

💡 What’s happening?
AI isn’t replacing accountants—it’s making them strategic advisors. Routine tasks like reconciliations and reporting are being automated, but advisory roles are growing.

📊 Key data points:

  • 60% of accounting professionals say AI will enhance their roles, not replace them.

  • AI-powered forecasting tools reduce financial risk by 30% for firms that implement them.

  • CPA firms using AI see a 25% increase in client retention.

🌊 Meta Trend: Knowledge workers are shifting from execution to AI-assisted decision-making.

🔗 Open Tabs: What We're Reading

— ID Research Team

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