Adrian JohnsonTLDR:
- DataSnipper, an AI audit software company, has raised $100 million in a funding round that values the company at $1 billion.
- DataSnipper’s products automate critical tasks for accountants and auditors, helping them extract and link data in spreadsheets and other software.
- The funding round reflects the growing appeal of AI in accounting and signifies the potential impact of AI on professional services.
DataSnipper, a software startup that automates tasks for accountants and auditors using AI, has raised $100 million in a funding round that values the company at $1 billion. The funding round, led by Index Ventures, demonstrates the increasing interest in AI in accounting and reflects the potential impact of AI on professional services. DataSnipper’s products help accountants extract data from databases and documents, link specific data to cells in spreadsheets, and automate some accounting tasks. The company is also launching an AI-based chatbot that will assist clients in retrieving specific information from documents. The funding will allow DataSnipper to expand into new geographic markets.
There is a shortage of trained accountants, particularly for audit work, as many experienced professionals in the field retire. The accounting profession is estimated to have three-quarters of certified public accountants (CPAs) nearing retirement age. The low number of people taking the CPA exam is also contributing to the shortage of accountants. DataSnipper’s software is seen as a way to retain accountants and reduce burnout by automating time-consuming and tedious tasks.
Economists suggest that AI is unlikely to eliminate the need for qualified professionals in fields such as law, consulting, and medicine. Instead, AI could lower the cost of these services and potentially increase demand. While AI can make professionals more efficient, it is unclear if it will reduce overall headcount in professional firms.
DataSnipper’s software is already being used by all of the Big Four accounting firms and companies such as Frontier Airlines, Siemens, and Hilton Hotels. The company primarily competes with manual processes still used by audit teams. The funding will enable DataSnipper to expand its target customer base beyond traditional financial statement preparation to teams auditing supply chains, carbon footprints, and regulatory compliance. Other companies, including SAP and Wolters Kluwer, also offer software tools for accountants and auditors, some of which incorporate AI-driven features.
