LITTLE ROCK (KATV) — Accounting firms in Arkansas are aggressively adopting artificial intelligence tools. The field is among the most impacted by the AI boom because it is so data-centered.
“All the accounting firms, you know, medium size to large firms that I’ve been talking to, they have incorporated AI to some extent,” said Dr. Gaurav Kumar, a professor of accounting at the University of Arkansas at Little Rock.
Artificial intelligence can do in an instant work that used to take accountants many hours.
Landmark CPAs is at the forefront of the industry’s shift to AI in Arkansas and says the technology has all but eliminated the need for entry-level accountants to punch in numbers for W-2s and 1099s.
“Being able to use software that can auto-populate, can read documents and populate that into the return for us has really made a big difference,” said Rocky Goodman, a tax partner at Landmark.
And it’s the same with audits—AI can look for discrepancies and verify cash payments at lightning speed.
“It’s going to do it like that, whereas it used to take a staff maybe five to 10 hours,” said Michael Pierce, a Landmark audit partner.
And contrary to fears, Landmark says AI isn’t costing accountants jobs but plugging a gap created by a workforce shortage in the industry.
The advantages of AI are clear, but it also demands investment in cybersecurity and ensuring data privacy.
“One of the concerns is privacy. So, you know, if the staff is using personal AI tools, client data could be exposed. So firms must provide kind of secure, enterprise-grade AI options and clear policies,” Kumar told KATV.
Landmark plays it safe and uses enterprise-level AI tools.
“Our IT department obviously spends a lot of time researching to ensure that we don’t have any issues with client information being included in the learning modules that are building out these AIs,” Pierce told KATV.
Another concern is that, despite its rapid growth, AI is not infallible.
“AI can still produce incorrect or sometimes made-up information it can automate tasks, but it cannot replace judgment, ethics, or the ability to interpret complex tax laws or business scenarios,” Kumar said. “So, you know, that’s where a professional CPA, professional accountants, come in—review is essential.”
For that reason, and because data input is no longer a burden, Landmark is hiring CPAs for more of an analytical role.
“It does take a different skill set for someone than it did prior to the AI explosion,” Goodman told KATV.
But AI is reshaping the accounting industry in other ways as well.
“It’s also another challenge because AI is reducing the number of hours it takes to do a work, and traditionally accounting firms have always billed their clients on an hourly basis. So now AI is kind of pressuring firms to shift away from hourly billing and move more towards value pricing and subscription based advisory. So it’s kind of like they have to change their whole model,” Kumar told KATV.
Another factor is the cost of AI—like other firms, Landmark has had to spend a lot of money to stay competitive in its rapidly changing industry.
There is immense pressure to adopt AI, and it’s not limited to accounting firms.
“I’ve been seeing that companies in Central Arkansas are eager to move forward, but they’re trying to do it judiciously,” said Marla Johnson, tech entrepreneur-in-residence at UALR.
