Page 88 - CMA Journal (Mar-Apr 2025)

TOP TECHNOLOGY TREND

T T T

Agentic Artificial Intelligence (AI):

Shaping the Future of Accounting

and Auditing

Accounting and auditing, once rooted in meticulous methodologies, and
manual processes, are undergoing an unprecedented tax rules into its
transformation. This shift is not just about knowledge base. This
automation—it is about autonomy, intelligence, and the allows it to make Alia Noor, FCMA
rise of a new technological paradigm: Agentic Artificial decisions in context - Associate Partner,
Intelligence (AI). As the finance industry faces growing ensuring, for instance, Ahmad Alagbari Chartered
complexity and demands for real-time insights, agentic that journal entries Accountants, U.A.E
AI emerges as a catalyst for reshaping how accountants comply with relevant
and auditors operate. Rather than replacing human policies or that tax returns reflect current regulatory
expertise, agentic AI is augmenting professional updates.
capabilities, enhancing accuracy, efficiency, and strategic
3) Reasoning and Planning - Unlike static automation
decision-making. It’s not a question of if the profession
scripts, Agentic AI can break down tasks into logical
will change—it’s a matter of how quickly we adapt.
sequences. If asked to “finalize the year-end closing,”
What Is Agentic AI? it will identify the necessary steps (e.g., accrual
adjustments, reconciliations, provisioning), plan
Unlike traditional automation that follows fixed rules or them, and execute in the correct order.
machine learning that relies on historical data to make
predictions, Agentic AI can think and act more like a 4) Execution Capability - Agentic systems directly
human. It understands natural language, sets its own interface with accounting software, ERPs, document
goals, makes decisions based on the situation, and repositories, and communication tools. They can
learns from experience—without needing step-by-step post entries, extract data from emails, trigger
instructions. Where basic AI tools help with tasks, notifications, and even draft responses or reports.
Agentic AI takes charge of entire workflows. In simpler 5) Self-Learning and Adaptation - Perhaps most
terms, Agentic AI behaves like a self-directed digital transformative is the AI’s ability to learn. When it
agent, capable of performing and managing entire encounters new invoice formats, approval routes, or
processes—whether that’s month-end closing or a financial anomalies, it updates its internal model
continuous audit cycle—with minimal supervision. and applies improved logic in future

How Agentic AI Functions instances—resulting in continuously optimized
performance.
Agentic AI systems are built upon multiple
interconnected technologies, which together give them Practical Applications of Agentic AI
the ability to think, act, and adapt: The versatility of Agentic AI extends across the financial
1) Natural Language Processing (NLP) - This allows function. Some of the most promising use cases include:
professionals to communicate with AI agents using 1) Bookkeeping Automation: Agentic AI handles
plain language commands. For example, a CFO tasks such as transaction entry, categorization, and
might say, “Prepare a variance analysis between Q1 account reconciliation. This reduces errors and frees
and Q2 operating expenses,” and the AI interprets professionals for more analytical work.
and executes that command without the need for
coding or scripting. 2) Financial Reporting: It can prepare accurate
financial statements and flag anomalies or risks,
2) Knowledge Representation - Agentic AI integrates enabling faster, data-backed business decisions.
accounting standards (like IFRS or GAAP), audit

86 ICMA’s Chartered Management Accountant, Mar-Apr 2025