AI In The Bookkeeping Market Size, Share, Opportunities, And Trends By Organizational Size (Small-size Organization, Medium-size Organization, Large-size Organization), By Deployment (Cloud, On-Premise), By Application (Machine Learning, Invoice Classification And Approval Source, Compare Employee Expense Reports, Track Changes In Prices, Others), And By Geography - Forecasts From 2024 To 2029

The AI in the bookkeeping market is anticipated to expand at a high CAGR over the forecast period.

AI in bookkeeping is the application of artificial intelligence (AI) technology to automate and simplify a variety of accounting and bookkeeping activities. These technologies use machine learning algorithms, natural language processing, and other AI approaches to analyze financial data, categorize transactions, reconcile accounts, create reports, and carry out other typical accounting tasks.

Some ways AI is transforming bookkeeping are automated data entry, transaction categorization, reconciliation, and financial reporting. AI-powered software can extract relevant information from receipts, invoices, and other financial documents, reducing the need for manual data entry.

AI algorithms can analyze transaction data and automatically categorize expenses, revenues, and other financial entries, making it easier to track and manage finances. AI-driven reconciliation tools can match transactions between bank statements, invoices, and accounting records, helping to identify discrepancies and ensure accuracy.

AI can generate customized financial reports based on predefined parameters, providing insights into business performance, cash flow, and other key metrics.

Market Drivers

• Increasing automation demand is contributing to AI in the bookkeeping market growth

Automation improves bookkeeping operations by minimizing human duties, including data input, classification, and reconciliation. AI-powered systems may complete repetitive activities faster and more precisely than people, resulting in considerable time savings and enhanced productivity.

Among various products available in the market, the AP AUTONOMY boosts team productivity by processing invoices quicker and more precisely than template and rule-based accounting automation solutions. AI-powered AP Autonomy replaces legacy OCR and rule-based approaches for faster and more accurate processing.

Overall, rising automation demand is boosting the use of AI in bookkeeping as firms strive to optimize procedures, cut costs, increase accuracy, and acquire actionable insights from their financial data.

• The emergence of cloud-based solutions is contributing to AI in the bookkeeping market growth

Cloud-based AI accounting solutions allow businesses to use sophisticated tools without requiring expensive IT infrastructure, making advanced bookkeeping capabilities more accessible to a larger variety of organizations.

Among various products, one of the products is Zoho Books, which is a complete platform for managing accounting processes and transactions. It's a centralized, secure location for managing your company's bills and invoices, reconciling bank accounts, regulating expenses, and overseeing projects.

Overall, the introduction of cloud-based solutions has transformed how organizations handle bookkeeping and accounting, giving them better flexibility, scalability, cost-effectiveness, security, and integration possibilities. As a result, cloud-based AI accounting solutions have grown in popularity among businesses of all sizes, propelling the industry forward.

Market Restraints

• Data privacy concerns and data privacy hamper the market growth

AI-powered accounting systems use massive volumes of data to train their algorithms and generate accurate predictions. However, worries about data privacy and security may dissuade organizations from implementing these solutions, particularly if they require exchanging sensitive financial information with third-party service providers.

AI in the bookkeeping market is segmented based on different deployment models

AI in the bookkeeping market is segmented based on different deployment models. Cloud-based AI accounting solutions are hosted and maintained by third-party service providers and made available to customers over the Internet. This strategy provides scalability, flexibility, and reduced upfront costs because firms pay for services on a subscription basis. It also supports remote access and automated upgrades.

In on-premises deployment, the AI-powered bookkeeping software is installed and run on the company's servers and infrastructure. It gives organizations more control over their data and customization possibilities, but it demands an initial investment in hardware and IT resources.

North America is anticipated to hold a significant share of the AI in the bookkeeping market.

North America, particularly the United States, is a hotbed of technical innovation. With a robust ecosystem of digital businesses, startups, and research institutes such as Vic.ai, Bill, Docyt AI, and Zoho, the area is leading the way in creating AI solutions for a variety of sectors, including bookkeeping.

North American businesses, particularly major organizations, and tech-savvy startups, are among the first to adopt AI technology. They recognize AI's promise for enhancing efficiency, accuracy, and cost-effectiveness in bookkeeping procedures, which has resulted in growing investment in AI-powered solutions.

Overall, North America's significant share of the AI bookkeeping market demonstrates the region's leadership in harnessing technology to create innovation and efficiency in financial operations.

Key Developments

• April 2023 - PwC US announced planned to invest $1 billion over three years to enhance and scale its AI solutions, with an emphasis on generative AI. The investment would improve PwC's capacity to provide human-led and technology-powered solutions, foster trust, and generate long-term results. The collaboration with Microsoft would allow scalable products based on OpenAI's GPT-4/ChatGPT and Azure OpenAI Service.
• April 2023- Intuit Mailchimp, a worldwide leader in email marketing and automation, introduced Email Content Generator (beta), a set of AI-powered capabilities that allow users to design marketing email campaigns based on industry, marketing goal, and brand voice. This is the next step towards Mailchimp's objective of transforming email marketing for small and medium-sized organizations.

Company Products

• BILL Account Console – The Accountant Console simplifies operations and improves client service by eliminating manual reporting and enhancing data accuracy with AI-powered reports. It enables the immediate inclusion of BILL Accounts Payable, BILL Accounts Receivable, or BILL Spend and expense services, assigns staff assistance, and demands relevant paperwork signatures.
• VATBox – VATBox by Blue Dot is a solution that helps businesses optimize their VAT recovery procedures, locate unclaimed refunds, and save money. It breaks down invoices and VAT reclaims and gives a detailed picture of all VAT reclaim statuses. The application facilitates the navigation of transactional data and VAT filings and may be used to boost VAT recovery possibilities.

Market Segmentation

• By Organizational Size
  • Small-size organization
  • Medium-size organization
  • Large-size organization
• By Deployment
  • Cloud
  • On-Premise
• By Application
  • Machine learning
  • Invoice Classification and Approval Source
  • Compare employee expense reports
  • Track changes in prices
  • Others
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • France
    • UK
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Israel
    • Others
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Indonesia
    • Taiwan
    • Others