Whether they’re run on a spreadsheet or on a custom-built analytics platform, tools to assist forensic accountants in their daily work have existed for decades. These tools help automate, to differing levels, the analysis of large volumes of financial data.

As organisations are increasingly told that AI is a vital ingredient for high performance, it is easy to assume that the new technology should be used to replace existing analytics tools. That would be a mistake, says Trevor Monaghan CA, forensic accountant, business valuation specialist and director at Climax Valuations and Forensics. Rather than using AI to take over tasks that are already highly automated, he suggests the real challenge lies in leveraging the technology to focus on patterns and anomalies outside of the numbers.

“AI doesn’t bring much in the numbers space that we didn’t already have,” Monaghan says. “We’ve already got software, Python tools, etc, that could always analyse data and look for patterns. They’ve been around forever and are getting better all the time.

“Where AI comes in is around following unstructured data that’s intertwined with language. It’s not going to necessarily improve on analysing the bank statements to look for anomaly numbers, but it might help you understand the patterns of some of the descriptions, for example.”

That is where a correct understanding of the technology becomes vital, Monaghan says. AI does not replace the human role of understanding and interpreting evidence, and explaining outcomes to stakeholders. AI will not deliver definitive conclusions, but it can be used to identify pathways to evidence or reduce human effort.

Whatever you do, Monaghan says, don’t see AI as a shortcut to success.

AI complements expertise

Monaghan believes that, for some accountants, one of the main aims of using AI is to avoid conversations with clients.

“Their goal is to automate lead generation, for example, so they think of getting a chatbot on their website to answer questions, meaning they don’t have to talk to anybody. Maybe it automatically sends out queries and quotes, and follows them up,” he says.

“But I make all of my money through conversations, because that’s where I’m building trust. That’s where I’m solving problems. That’s where I’m really understanding their business or at least conveying that I understand it, in helping them solve a problem.”

Monaghan is also seeing clients, or potential clients, using AI to produce reports such as business valuations.

“They’ve uploaded their financials and asked for a valuation,” he says. “The AI has done quite a good job of producing something that looks like a report, but it contains catastrophic errors. They reach out to a trusted adviser to see if it makes sense and to get advice on the next steps.”

Once again, Monaghan says, AI is not useful in terms of replacing the context, judgement and professional responsibility required, specifically in forensic and valuation work. That is not where its value lies.

For any accountant – whether in forensics or elsewhere – the value of AI lies in its ability to solve problems specific to their day-to-day work. It is also enormously powerful when used to create customised internal tools that integrate into a firm’s workflow, reducing reliance on expensive third-party software.

BYO technology

Before AI, Monaghan designed and developed several of his own software tools for business valuations and analytics, including Valuation Ultimate, a full-featured business valuation SaaS software suite used by more than 500 firms. Despite his software development background, he has recently begun using AI-assisted coding tools to rapidly develop new internal applications, from chatbots to workflow automations.

Earlier this year, he hosted a webinar – Build a Working Accounting Software Tool with AI – during which he built a fully working chattel mortgage schedule generator with a database to save schedules for each client.

“You don’t even know what’s possible until you get into it,” he says. “I could basically make anything. Just don’t make it available on the internet, unless you engage experts to implement security protocols.”

This points to a changing environment for accountants looking to add valuable skills, he says.

AI means accountants don’t need to become full developers. However, those who understand systems, workflows and data – and can work with AI to build new internal tools – will be highly valuable to employers or their own firm.

AI also enables accountants to design and build relevant tools, rather than wait for third-party software vendors to understand the problems they’re trying to solve. They can prototype new tools easily, then hand them over to professional developers to ensure they’re secure.

“Security and privacy are critical,” Monaghan says. “Don’t upload private client information online to your own or third-party tools, unless you know they are secure.”

He also warns against “throwing” AI into your business. “First, ask what you’re trying to replace or improve, then figure out exactly what you need to achieve that goal. AI might play a big part, or it might not. Keep a level head.

“Use AI to do the things that are procedural and take time,” he adds, “then pivot your time to more high-value things that produce better results for clients.”

Forensic Accounting Specialisation Program

Are you interested in becoming a CA Forensic Accounting Specialist? The specialisation program offers two pathways to entry through post-graduate study or an online course to support members at all stages of their career.

The next live online course for the Forensic Accounting Specialisation Program starts on 14 October 2026 and concludes on 9 December 2026. Registrations are open now!