Predictions for 2024 – Mid Year Update

In January I laid out my predictions for 2024. How are they looking six months in?

Generative AI in audit.?

Prediction: 2024 will see extensive exploration by firms and technology companies into how Generative AI could more significantly impact the work of auditors at scale. I expect we’ll start to see some clearer use cases appearing to apply this transformational technology which remain within the confines of the existing audit standards and regulatory expectations.?

Status: Lots of experimentation is happening. But there is still more hype than substance. Gartner report Generative AI is on the slope down to the trough of disillusionment. While some have added GenAI features for the sake of it, more diligent audit vendors are still experimenting to find value-add use cases. Expect more clarity in the next 6 months.

Auditors break the shackles of desktop software.?

Prediction: In 2024 many firms will finally ditch software built in the previous century for more modern, cloud-based platforms. This will better position them to take advantage of Generative AI developments, automation, and new opportunities to leverage data.??

Status: Firms have been constrained by an inability to move away from desktop audit software because there has not been a viable cloud-based solution. But now there is, and we’re seeing firms are desperate to ditch the desktop grind.

Large US vendors bring new solutions to market.?

Prediction: We’ll see solutions like CCH’s Axcess Cloud and the CPA.com’s Dynamic Audit Solution finally entering the US market and showing what close to 5 years of development has produced. Whether good, bad, or indifferent, entry to the market will thaw a US profession which has been partially frozen waiting for these large players to show their hands.?

Status: These solutions are certainly more prominent in the market. Whether they are truly viable or more work-in-progress is for each firm to decide. Maybe the US market is moving quickly because they have now seen the solutions, or because they are tired of waiting. But either way firms are finally moving to better audit platforms.

Integration, integration, integration.?

Prediction: Firms will make API capabilities and the willingness of technology providers to integrate with other providers a key part of their decision-making process.?We’ll see the newer, cloud native technology companies increasingly partnering with each other to create out-of-the-box integrations for firms.

Status: APIs are a more prominent part of any technology evaluation by a firm. At Inflo , we have also partnered with the likes of DataSnipper to create integrations. Credit to Suralink, Validis, Trullion, and others for also taking a progressive approach to forming integration partnerships.

Talent shortages improve but aren’t solved.?

Prediction: Firms will continue improving retention and recruitment placing a greater focus on technology and innovation benefits for their team’s experience and career development to improve staff retention and demonstrate their attractiveness as an employer.?

Status: I am hearing less about talent challenges from firms, though more talent in the market is still needed. Movement on entry requirements to be a US CPA is a step in the right direction. ICAEW student numbers are at record levels.

Increased M&A activity.?

Prediction: Continued activity from private equity investment into the accounting profession. This will take the form of both new firms taking investment, and firms already backed by private equity investment going on acquisition sprees.??

Status: The market has certainly been active! The biggest deal in the last 6 months being New Mountain Capital’s majority investment in Grant Thornton US.

More firms move to a corporate leadership model.?

Prediction: We will see more accounting firms evaluate making this change in response to dynamic client needs, talent challenges, and the rapid pace of change in the technology landscape.

Status: Little has been seen on this through high-profile press releases. But it is a topic being discussed at a lot of conferences and within firms. The firms who have moved to this model are certainly benefiting.

Lack of reform exposes UK audit to criticism?

Prediction: Something I really hope does not come to fruition, but should there be another UK corporate failure hitting the press in 2024 we’ll see journalists heavily questioning how the UK audit market learned the lessons of Carillion.

Status: Phew! We have avoided any high-profile business failures in the UK in the past 6 months…

Let’s see how these predictions play out come the end of 2024!

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