Automation and artificial intelligence (AI) have dominated conversations worldwide in recent years, especially as technology has advanced to the point where anyone can get answers instantly — often with just a tap on a smartphone.
In the accounting world, automation has become particularly relevant for routine tasks such as organizing and categorizing information. As accounting software continues to evolve with AI capabilities, professionals have been debating its impact on the industry. The recurring question: Will AI eventually replace bookkeepers? And if so, how soon — and at what cost to entry-level accounting jobs?
Automation: Convenience or Complication?
For tech-savvy business owners, automation seems like a practical way to cut costs and streamline bookkeeping without hiring an in-house bookkeeper. However, the reality isn’t always so simple.
While automation tools can be appealing to small and medium-sized enterprises (SMEs), adopting these systems requires time and technical understanding. Business owners already balancing multiple responsibilities may find that learning and managing new software consumes more effort than expected. Moreover, automation introduces new risks — from data entry errors to cybersecurity vulnerabilities — since most modern systems operate in the cloud.
Still, it’s hard to overlook the convenience and efficiency that AI offers. Manual accounting work is time-consuming, and outdated systems often hinder business growth. According to Stanford University, “Accounting often tops lists of the most automatable jobs, owing to its reliance on routine tasks like data entry and reconciliation — exactly the kind of work [that] computers, and now artificial intelligence, are built to handle.”
AI as a Partner, not a Replacement
While AI excels at repetitive, rules-based tasks, it doesn’t eliminate the need for human expertise. Instead, it’s transforming the role of bookkeepers and accountants.
Research by Jung Ho Choi, Assistant Professor at the Stanford Graduate School of Business, and Chloe Xie of the MIT Sloan School of Management shows that AI is taking over transactional tasks, such as transaction classification, enabling accountants to focus on higher-value work like analysis and strategic advising.
“The technology is not here to replace the human being — it’s here to augment the experts who are already in place,” says Choi.
In fact, AI often raises the quality of work by standardizing processes. Yet, it also requires professional oversight, as AI-generated outputs can contain inaccuracies or lack understanding of nuances and "gray areas". Without the discernment of experienced accountants, errors can easily slip through — emphasizing that AI works best as a collaborator, not a substitute.
Bridging the Talent Gap Through Offshoring
As AI changes the nature of accounting work, another challenge has emerged: the shortage of skilled accountants. Many firms struggle to find or afford qualified talent locally, especially those who can combine technical expertise with analytical thinking.
This is where offshoring and outsourcing become strategic solutions. By partnering with offshore accounting professionals, firms can access a broader talent pool — often at a fraction of the cost — without sacrificing quality. Offshore accountants trained in AI-driven systems can handle both transactional and analytical tasks, helping businesses stay competitive and agile.
Offshoring also complements automation. While AI streamlines data processing, offshore teams ensure accuracy, context, and compliance — the human touch that automation lacks. Together, they form a hybrid model that combines technology’s speed with human insight and adaptability.
The Bottom Line
The future of bookkeeping and accounting isn’t a story of humans versus machines. It’s about how both can work smarter together. AI can handle the routine; humans bring strategy, judgment, and relationships to the table.
Firms that embrace this collaboration — leveraging automation alongside skilled offshore teams — won’t just keep up with technological change. They’ll lead it.