The vast majority of accounting firms now offer at least some advisory services, with this growth enabled at least in part by AI and data analytics.
This is according to a recent survey from
While the shift away from traditional compliance-based services and towards higher-value advisory engagements has been happening for a while, technology has accelerated the change for firms of all sizes. Even very small firms now have access to data that enables them to provide deeper insights to clients that go beyond when to file their taxes. The survey found that 88% of firms are already leveraging client data to proactively offer advisory services. Meanwhile, 92% of firms say they’re analyzing their own internal data to forecast their own needs and identify potential opportunities.
“Whether using data analytics to identify client needs, tailoring client outreach based on client feedback or analyzing transaction history, firms are putting data to work in practical, results-driven ways. Firms can offer more relevant recommendations and support by taking a data-informed approach to client needs. These firms are leveraging AI to elevate their role from compliance processors to trusted advisors,” said the report.
Further accelerating the growth of advisory services has been the proliferation of AI models that help ingest and analyze the data for insights. Among firms using AI regularly, 41% of high-growth firms report much-better-than-expected performance from AI in improving advisory services, compared to 27% of non-high-growth firms. These firms are using AI to analyze client data, anticipate needs, and tailor communications, elevating the value they deliver across every interaction.
This is reflected in the main ways firms are using advanced AI, which generally seem to be more advisory-related. The No. 1 use case, according to 40% of respondents, is research for tax, accounting and audit engagements; 38%, meanwhile, use it for document summarization and analysis; and 35% use it for client communications.
Firms seem aware of this, which might explain why implementation of AI tools has quadrupled in just a year, and why 77% of firms plan to increase their AI investments over the next three years. This, in turn, is affecting talent concerns: a desire to develop advanced technical skills grew from 27% to 31% in a year, and staff demands for advanced technology in general grew from 19% to 29% in the same time period.
However, firms still report significant challenges in providing data-driven insights, AI tools or no, particularly when it comes to accessing the data itself. When asked about their main issues with accessing data:
- 31% cited system integration complexity;
- 30% cited data privacy and security;
- 28% cited lack of skilled personnel;
- 28% cited resource constraints;
- 27% cited low quality client data; and,
- 27% cited the cost of manually cleaning up data.
“On the technology front, poor system integration and data quality issues limit firms’ ability to personalize insights. Many report difficulty leveraging data strategically due to the complexity of integrating data analytics into existing systems or security concerns. … These challenges aren’t insurmountable, but they require more than tools; they require coordinated investment in systems, skills, and strategy,” said the report.
The Future Ready Accountant Survey received validated responses from 2,768 tax and accounting professionals from firms of all sizes. The survey was conducted online for Wolters Kluwer by Dynata, from April 23 to May 27, 2025.
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