Clients Will Pay More for AI-First Audits

Several years ago, when cloud workpapers first entered the mainstream, most audit leaders treated them as an internal upgrade - something that made their teams’ lives easier but didn’t fundamentally change how clients perceived the service. Technology sat behind the curtain. The deliverable stayed the same.

The last two weeks have told a very different story.

A new article in the Journal of Accountancy reports that nearly all CFOs and finance directors - 97% - say they would pay more to work with audit firms that rely on AI and other advanced technologies, based on findings from BDO’s latest Audit Innovation Survey.

The same survey shows that 81% of finance leaders report greater trust in firms that invest in and actively use advanced technology, and a full third would consider switching firms if their auditor’s technology lagged behind their own finance organization.

For years, firms have treated audit innovation as a back-office efficiency play. Now the market is sending a different signal: technology has become a client-visible differentiator - and one that buyers are explicitly willing to pay a premium for.

What CFOs Are Really Buying

It’s tempting to interpret the BDO and Journal of Accountancy findings as generalized enthusiasm for AI. But if you listen closely to finance leaders - and read the details of the Audit Innovation Survey - the pattern is clearer.

CFOs are not paying for “AI” in the abstract.
They are paying for the outcomes an AI-enabled audit makes possible.

In conversation after conversation, finance leaders describe an audit experience defined by friction: repetitive PBC lists, manual data pulls, unclear status updates, and late-arriving issues that derail board meetings and lender conversations. When they talk about technology, four themes emerge.

They want deeper insight into risk, not just confirmation that transactions were recorded correctly. Research from firms like KPMG and recent academic work on AI in auditing highlight AI’s ability to analyze entire populations, score transactions, and flag anomalies for focused follow-up - extending auditors’ reach well beyond traditional sampling.

They want a faster, smoother close. In BDO’s data, technology is closely linked with a better overall audit experience, but it is also associated with persistent pain points: system compatibility, messy data, and manual extraction are still among the top challenges CFOs report. AI and modern analytics don’t just improve testing; they reduce the number of last-minute requests, unclear reconciliations, and time-consuming back-and-forth that sap internal capacity.

They want clearer visibility into risk throughout the year, not just at year-end. Continuous analytics, anomaly dashboards, and more dynamic risk assessments are quickly becoming hallmarks of an “AI-first” audit. Regulators and standard setters have begun to acknowledge that data-driven, technology-enabled approaches can support more granular risk assessment - provided there are guardrails and human oversight.

And they want auditors whose tools actually work with their environment. In the latest BDO survey, more than 70% of finance leaders still report issues with technology compatibility and data extraction between their organization and their auditor. The firm that can connect directly into core systems, pull data with minimal disruption, and give finance teams time back? That’s the firm that feels worth a premium.

None of these are “technology features.” They’re business outcomes: fewer surprises, less friction, better conversations with boards and lenders, and more confidence in the numbers. That’s what clients are really buying.

Why This Moment Matters for CPA Firms

For mid-market firms, this is both an opportunity and a test.

The opportunity lies in the obvious: if almost every finance leader says they’re willing to pay more for an AI-enabled, tech-forward audit, then firms that can clearly describe - and reliably deliver - that experience have a path to premium pricing and stronger differentiation.

But there’s a warning embedded in the same data. According to BDO, 93% of respondents describe their audit firm’s technology as “progressive,” closely matching the sophistication of their own finance teams. In other words, just being “modern” is no longer a differentiator. Many firms have already climbed that hill.

The firms that stand out won’t be those that merely have AI in the background. They’ll be the ones that reposition the audit itself as a different kind of engagement - one that is more transparent, more analytical, and more respectful of the client’s time.

That’s where the conversation shifts from tools to positioning and growth strategy - territory where Hollinden already spends a lot of time with clients through our work on accounting firm growth strategies and our framework for sustainable expansion.

Turning Technology Into a Market-Facing Story

If you flip through a stack of RFP responses from mid-market firms, you’ll see a familiar pattern: technology gets a paragraph near the end of the methodology section. It’s framed as infrastructure. Necessary, but not central.

The latest Journal of Accountancy coverage suggests that needs to change.

If technology is now a buying criterion and a willingness-to-pay driver, it belongs in the opening narrative. That doesn’t mean leading with jargon about machine learning models or specific vendors. It means describing how your audit actually feels different.

For example:

• Instead of “we use AI tools to enhance testing,” you describe an audit that tests more of the population, surfaces unusual patterns early, and gives management a clearer picture of risk before board meetings.
• Instead of “we’ve modernized our workpapers,” you paint a picture of an audit that integrates with the client’s ERP, reduces one-off data pulls, and lets the finance team stay focused on running the business.
• Instead of “we offer dashboards,” you talk about how management can see year-over-year trends, risk hot spots, and unusual movements in real time, not after the fact.

The most effective firms go one step further: they give this experience a name. Big Four firms have spent years branding their platforms; there is no reason mid-market firms cannot create a named, repeatable “AI-first audit” experience of their own.

When the audit has a name and a clear promise, it becomes something partners can talk about consistently - and something CFOs can remember, compare, and ultimately choose.

Rethinking Pricing in an AI-Enabled Audit

If the profession has historically priced audits through a labor lens - hours, rates, and effort - AI complicates that picture. Some work steps become faster; other steps (like analytics, continuous monitoring, or advisory-style discussions) deepen. Meanwhile, research like the Thomson Reuters Generative AI in Professional Services report and related coverage in CPA Practice Advisor shows that adoption of GenAI is accelerating across tax and accounting, not just in the Big Four.

The combination - clients ready to pay more, technology rebalancing the work - calls for a more deliberate pricing strategy.

That doesn’t mean slapping a separate “AI fee” onto the engagement letter. Instead, many firms are starting to shape tiers of audit experience:

• A core audit that is tech-enabled but focused on compliance.
• A more expansive AI-first audit with continuous analytics, richer reporting, and faster close timelines.
• A top-tier version that weaves in insights and advisory-style dialogues built from the audit data.

The labels and structure will vary by firm and market. The important shift is this: pricing is anchored not in inputs, but in clearly articulated outcomes. When CFOs can see that an AI-first audit delivers more coverage, less disruption, and better insight, the fee becomes easier to defend - and the conversation moves from “How low can you go?” to “Which level of visibility and support do we want?”

This is squarely in the realm of growth strategy and pricing strategy, where we often work with firms to align offerings, messaging, and economics.

AI-First Audit as a Valuation Lever

There’s another dimension firms sometimes overlook: how these audit capabilities show up in M&A and private equity conversations.

Private equity platforms and strategic buyers evaluating accounting firms are asking a broader set of questions than they were even a few years ago. Beyond revenue mix and niche focus, they are looking closely at:

• How standardized and scalable the firm’s audit processes are.
• What the technology stack looks like - particularly around data, analytics, and AI.
• Whether the firm has reliable, reusable audit data that can feed broader performance dashboards or cross-sell efforts.

Industry commentary on technology due diligence in professional services deals, and our own work helping firms prepare for transactions, all point in the same direction: firms with modern, documented, and scalable technology are easier to integrate and easier to grow, and that can influence multiples.

An AI-first audit platform, in that context, is more than a service enhancement. It is part of the firm’s intangible asset base. It signals to buyers that:

• The firm has already done the hard work of standardizing its approach.
• The engagement model is less dependent on incremental headcount growth.
• There is a path to rolling analytics and AI capabilities across a broader client base post-deal.

For firms thinking about succession, capital events, or becoming a platform acquisition themselves, this is where audit innovation intersects directly with acquisition targeting and M&A positioning.

Preparing for What Comes Next

The message from the market is unusually clear. CFOs are not gingerly tolerating AI in the audit. They are actively preferring firms that use it - and are prepared to pay more for the experience that technology enables.

For firms, the work now is less about chasing every new tool and more about designing a coherent strategy:

• Defining what “AI-first audit” means for your firm and your clients.
• Translating that into a compelling story in proposals, partner conversations, and marketing.
• Aligning pricing with the value that story promises.
• Incorporating audit technology into your strategic planning, not just your IT budget.
• Ensuring your audit data and workflows strengthen, rather than weaken, your future M&A or succession options.

The firms that move first - and move thoughtfully - will shape expectations in their markets. They’ll be the ones winning competitive RFPs, retaining the clients who care most about visibility and risk, and sitting across the table in a future deal with a convincing growth and technology narrative.

AI may power the audit of the future. Right now, it’s also powering a rare opportunity: to rethink not just how audits are performed, but how they are priced, positioned, and valued.

If your firm is ready to take the next step in its evolution, Hollinden is here to help - from growth strategy for accounting and advisory firms to strategic planning.

Frequently Asked Questions about AI Audits

Are clients actually choosing accounting firms based on their audit technology, or is this just hype?
Yes, it is already influencing buying decisions. Recent surveys show that buyers now view technology as part of the audit deliverable, not just infrastructure. Leaders want audits that reduce friction, provide clearer risk insight, and integrate better with their systems. If two firms feel similar on expertise and price, technology becomes a tiebreaker.

How do we talk about AI in the audit without overpromising or raising regulatory concerns?
Lead with outcomes, not algorithms. Describe what the client will experience: fewer requests, earlier insight, better visibility. Pair that with a clear stance that technology augments professional judgment rather than replaces it. This keeps messaging accurate, credible, and aligned with regulatory expectations.

Will adopting AI force us to lower our audit fees?
No. Most firms are finding the opposite. AI shifts the conversation from hours and effort to value and outcomes. Faster processes are often paired with deeper analytics, more continuous monitoring, and richer reporting. That expanded experience supports premium pricing rather than discounting.