A new study suggests the Artificial Intelligence (AI) in accounting market size is expected to grow from USD 666 million in 2019 to USD 4,791 million by 2024, at a Compound Annual Growth Rate (CAGR) of 48.4% during the forecast period. The AI in accounting is driven by various factors, such as the growing need to automate accounting processes and support enhanced data-based advisory and decision making. However, growing concerns over high criticality of data volume and quality, and investment-related issues with integration of AI in accounting can hinder the growth of the market.
Services segment to grow at a higher CAGR during the forecast period
The AI in accounting market based on component is segmented into solutions and services. The services segment is expected to grow at a rapid pace during the forecast period.
The growth of this segment can be attributed to the increasing deployment of AI in accounting software tools and solutions, which leads to increasing the demand for pre- and post-deployment services.
Fraud and risk management application segment to grow at the highest CAGR during forecast period
The AI in accounting market, based on applications, has been segmented into automated bookkeeping, invoice classification and approvals, fraud and risk management, reporting, and others. Others include expense auditing and management, and tax and revenue filing applications.
The growth of the fraud and risk management segment is attributed to the increasing data related financial frauds and the need for enhanced data accuracy and protection.The technology has the capability to handle and evaluate unstructured data and identify threats.
NLP uses advanced algorithms to analyze text to derive insights and sentiment from unstructured data.
Asia Pacific expected to grow fastest
Asia Pacific (APAC) is expected to have the highest growth rate during the forecast period, owing to the growth in investments and funding, increasing number of startups, governments’ rising focus on data regulations and compliances.The rapidly growing economies, such as China, Japan, Australia, and India, are implementing AI solutions in accounting processes to free human resources from mundane tasks and ensure data consistency.
The companies operating in APAC would benefit from the flexible economic conditions, industrialization-and globalization-motivated policies of the governments, as well as from the growing digitalization, which is expected to have a huge impact on the business community. Meanwhile, North America is projected to hold the largest market size during the forecast period.
In-depth interviews were conducted with Chief Executive Officers (CEOs), marketing directors, other innovation and technology directors, and executives from various key organizations operating in the AI in accounting marketplace.
• By Company: Tier II – 15%, Tier II – 42%, and Tier III – 43%
• By Designation: C-Level Executives – 50%, Directors – 30%, and Others – 20%
• By Region: North America – 40%, Europe – 20%, APAC – 30%, MEA – 5%, and Latin America – 5%
The report includes the study of the key players offering AI in accounting solutions and services. The major AI in accounting vendors include Microsoft (US), AWS (US), Xero (New Zealand), Intuit (US) and Sage (England), among others.
The market study covers the AI in accounting market across segments.It aims at estimating the market size and the growth potential of this market, across different segments, such as components, (solutions, services), deployment modes, technologies, enterprise sizes, applications, and regions.
The study also includes an in-depth competitive analysis of the key players in the market, along with their company profiles, key observations related to product and business offerings, recent developments, and key market strategies.