AI for accountants and lawyers: How professional services firms can improve performance

Artificial intelligence (AI) is rapidly transforming the way professional services firms operate, creating opportunities to improve efficiency, strengthen client service and free up professionals to focus on higher-value advisory work.

For accountants and lawyers, adopting AI responsibly can support a wide range of activities, from document analysis and financial reporting to research, client communications and regulatory monitoring. However, firms must also understand the risks, governance requirements and practical considerations involved before implementing the technology.

Understanding today’s AI landscape

AI is far from a new technology, but recent advances in large language models (LLMs) have made powerful tools such as ChatGPT, Microsoft Copilot, Google Gemini and Claude widely accessible to businesses.

Rather than replacing professionals, AI should be viewed as a digital assistant capable of:

• Analysing large volumes of information in seconds
• Drafting documents and communications
• Identifying patterns and anomalies
• Automating repetitive administrative work
• Supporting research and decision-making.

AI technology is also evolving from conversational and generative AI towards agentic AI. These systems are capable of carrying out more complex tasks autonomously, such as scheduling meetings, monitoring compliance requirements, preparing reports and coordinating workflows.

Practical applications for accountants

AI is already improving finance and accountancy functions in several areas, including:

• Financial reporting and variance analysis
• Forecasting and cash flow modelling
• Fraud detection and anomaly identification
• Automated audit sampling
• Expense and invoice analysis
• Tax compliance support
• Client communications
• Regulatory monitoring.

Tools such as Microsoft Copilot can analyse financial data, identify spending trends, suggest potential cost-saving opportunities and generate management insights in a fraction of the time traditionally required.

Rather than replacing professional judgement, AI enables accountants to spend less time on routine processing and more time acting as trusted business advisers.

AI in legal practice

For legal professionals, AI offers significant opportunities to reduce the administrative burden associated with document-heavy work.

Potential applications include:

• Contract review and risk identification
• Legal research
• Document summarisation
• Due diligence
• Compliance monitoring
• Drafting routine legal documents
• Analysing large bundles of information.

AI can review lengthy contracts, explain legal terminology in plain English and highlight key obligations and potential risks. This enables lawyers to focus more of their time on interpretation, negotiation and client advice.

The importance of effective prompting

The quality of AI-generated output depends heavily on the quality of the prompt.

Detailed, well-structured prompts are more likely to deliver accurate, useful and context-aware responses than vague instructions. Prompt writing should therefore be regarded as a professional skill that will become increasingly valuable as AI adoption grows.

An effective prompt should clearly explain the task, provide the relevant context and define the required format, audience and level of detail.

Managing AI risks

While the benefits are significant, AI should never be used without appropriate oversight.

Key risks include:

• Inaccurate or fabricated information (“hallucinations”)
• Confidentiality and data protection
• Hidden bias in AI models
• Regulatory and ethical compliance
• Over-reliance on AI-generated outputs.

AI should be treated as a junior colleague or assistant. Its work should always be reviewed, verified and approved by an experienced professional before being shared with clients or relied upon for decision-making.

Building an AI strategy

Professional services firms should take a phased approach when introducing AI:

1. Assess where AI can deliver the greatest value.
2. Evaluate suitable AI platforms.
3. Run a pilot programme.
4. Train staff and establish clear AI policies.
5. Continuously monitor, review and optimise usage.

Successful implementation depends not only on selecting the right technology, but also on ensuring staff understand how to use AI safely, ethically and effectively.

Key takeaways

AI is already reshaping the accounting and legal professions by automating repetitive work, accelerating research and improving operational efficiency. Used responsibly, it enables professionals to spend more time delivering strategic advice, strengthening client relationships and creating greater value.

However, human expertise remains essential. Professional judgement, ethical oversight and accountability cannot be replaced by technology, and firms that combine AI with experienced professionals will be best placed to improve performance while maintaining quality, compliance and client trust.

This article is based on the webinar AI for accountants and lawyers – How professional services firms can improve performance, when Dr Stephen Hill, an AI trainer and consultant with more than 25 years’ experience in fraud, forensic accounting and digital investigations, explored how accountants and lawyers can adopt AI responsibly.

The session covered the latest AI tools, practical use cases, effective prompting techniques, emerging technologies and the governance considerations firms should address before implementation.