AICPA Town Hall (December 9, 2025)

Episode: Insights from the Digital CPA Conference, Profession Update and Evolving AI Trends

Overview

This episode of the AICPA Town Hall delivers a comprehensive update from the Digital CPA Conference, focusing on the rapid transformation of the accounting profession amid new regulations, ongoing government developments, and especially the evolving impact of Artificial Intelligence (AI) on firms. The hosts, joined by leading executives and subject matter experts, navigate the latest updates from DC, emerging AI-enabled practice models, major regulatory developments, and tips for maintaining professional growth through change.

Key Themes and Segments

1. Opening: The Spirit of the Digital CPA Conference

[00:11–03:42]

• Mark Koziel (AICPA) and Erik Asgeirsson (CPA.com) highlight the conference's dynamic atmosphere:
  • It’s not just a technology conference: it’s about people, process, and technology.
  • Emphasis on AI’s ubiquity and necessity of upskilling teams as AI reshapes processes and business models.
• Quote:

  "Technology could be the smaller piece of the three-legged stool. Right. It’s really about how people are going to interact with it...and then what are our practice strategies?"
  —Mark Koziel [01:48]

2. Profession Update: SEC Conference, PCAOB, and IPO Challenges

[04:04–08:31]

• Recap of SEC Conference and PCAOB updates:
  • SEC leadership urging the profession to "get back to basics" with a renewed focus on traditional financial statements rather than just emerging reporting requirements.
  • Push for revitalizing the IPO market ("Make IPOs great again"), recognizing the hurdles to going public and the increasing role of private equity.
  • PCAOB restructuring underway with new board seats pending and a move toward quality management standards aligned with international norms.
• Quote:

  "Chairman Atkins...wants to refocus on the financial statements and the financial statement aspect of who we are and what we do."
  —Mark Koziel [04:54]

3. DC Update: Elections, Government Shutdown, and Policy Shifts

[08:31–21:39]

• Mark Peterson provides a political landscape update:
  • Recent 43-day government shutdown’s ramifications on compliance guidance and concerns for the upcoming IRS filing season.
  • Upcoming government funding deadline (end of January 2026) and the instability such brinksmanship causes.
  • Midterm elections in 2026 are expected to drive policy changes, especially around cost-of-living relief measures.
  • Narrow congressional majorities could amplify the impact of retirements and redistricting on legislative outcomes.
• Quote:

  "Somebody sneezes, somebody misses a plane and there could be a challenge to whether they can get something off the House or Senate floor."
  —Mark Peterson [11:38]

Department of Education Controversy

[13:34–15:32]

• Department of Education has classified accounting (like engineering, architecture, nursing) as a "non-profession" regarding federal loan caps, impacting student loan eligibility.
• Immediate engagement by AICPA and state societies—public comment period expected to open January 2026.
• Quote:

  "This is just not common sense."
  —Mark Koziel [15:08]

AI Regulation and Federal vs. State Dynamics

[15:41–18:40]

• Administration’s focus: Foster AI innovation and remain globally competitive, primarily with China.
• Executive actions aim to preempt state-level AI regulation—federal funding as leverage.

Supreme Court and Tariffs

[18:40–19:47]

• Supreme Court is skeptical of the administration’s broad economic emergency powers used to impose reciprocal tariffs; possible narrowing of executive powers is expected.

Fiscal Responsibility

[19:47–20:45]

• Push for more robust fiscal reporting and joint Congressional review of the government’s financial statements.

State-Level Developments

[20:45–21:39]

• States are making moves on CPA pathways (120 hours plus two years experience), taxing professional services, and regulatory reform.

4. AI's Continuing Transformation of Accounting

Rene Lacerte’s (Bill.com) Perspective on AI

[24:56–37:44]

• The next five years projected to bring more change to accounting than the last 50.
• AI as an enabler: eliminating mundane tasks, empowering professionals to deploy their expertise where it counts.
• “Agentic AI” (autonomous agents) predicted to eliminate the "controllership" bottleneck and raise CAS practices to strategic advisory roles.
• Quote:

  "AI is going to give accounting back to accountants...Accounting needs to actually go back to the accountants. And I think that becomes a strategic lever."
  —Rene Lacerte [27:49]

• Discussion: Will AI eliminate entry-level opportunities?
  • Shift toward simulation-based training and rapid upskilling.
  • Emphasis on developing "bedside manner," client relationships, and critical thinking.
• Quote:

  "Practice requires time. That time requires efficiency. Efficiency is going to be enabled by AI."
  —Rene Lacerte [31:57]

• Concerns around trust and system controls:
  • Trust is foundational: "The most fundamental building block of any relationship, personal or commercial, is trust." [33:53]
  • Firms encouraged to build AI deployment strategies and avoid haphazard tool adoption.
  • "Eliminate, not automate” is the new mantra—rethinking processes before applying AI.
• Quote:

  “If we can use AI to actually bypass a couple of learning steps, that's going to help people adopt it.”
  —Rene Lacerte [37:44]

5. IRS and Technical Updates

[39:43–58:55]

• IRS ready for 2025–26 tax filing, despite shutdown delays.
• HR1 guidance rolling out quickly (e.g., qualified tips, overtime deduction), leniency on documentation for now, but more detailed guidance coming for 2026.
• Launch of Trump Accounts (special IRAs for new children)—details on eligibility and coordination with multiple code sections.
• IRS funding reduced overall but increased for taxpayer services; operational support cut.
• Math Error Authority and disaster relief (especially for Missouri storm victims) discussed.
• Employee Retention Credit: IRS is issuing disallowance notices; firms urged to act fast on appeals.
• Holiday spending survey: Majority of Americans anticipate debt—opportunity for accounting professionals to advise on financial planning.

Notable Quote:

"Keep really good records, which we say that all the time anyways. But in this particular case...you need to have those good records."
—Melanie Lauritsyn [44:39]

6. Building and Sustaining Professional Communities

[50:23–52:57]

• Expansion of AICPA’s “Engage 365” online communities for knowledge sharing, support, and collaboration; pilot communities on CAS, audit transformation launching soon.

7. IRS Modernization and Looking Forward

[56:34–58:55]

• Optimism about using AI to modernize IRS’s fragmented data systems, though major progress requires considerable investment and time.
• Quote:

  "Database design matters...that expertise in the experience we provide every second..."
  —Rene Lacerte [57:54]

Timestamps & Memorable Quotes

• Transformation theme:

  “The next five years are going to change the profession more than the last fifty.” —Rene Lacerte [24:56]

• AI agent impact:

  “AI is going to give accounting back to accountants... It’s going to take accounting from an hourly billing thing to something that is strategic. And when you get to that point, it is priceless.” —Rene Lacerte [27:49]

• Skills development shift:

  “That training from new Associate to manager was six years. Now it may be six months...” —Mark Koziel [29:59]

• On trust:

  "The most fundamental foundational building block of any relationship, personal or commercial, is trust." —Rene Lacerte [33:53]

• On process innovation:

  “Eliminate, not automate.” —(Summary slide, Mark Koziel & Rene Lacerte) [37:21]

Additional Resources and Closing

• AI guides, automation white papers, and the 2025 AI in Accounting report are now available.
• Engage 365 and new digital CPA communities will enable year-round dialogue.
• Next Town Hall: December 18 with economist Marcy Russell for a 2026 outlook.

Summary Takeaways

• AI is not just automating work—it’s fundamentally reimagining accounting roles, requiring professionals to focus on unique expertise and advisory value.
• Regulatory and policy shifts (e.g., loan caps, tax law, IRS modernization) demand ongoing vigilance and proactive advocacy by the profession.
• Community and collaboration (both physical and virtual) are key to navigating rapid change and upskilling at scale.
• The trust accountants build with clients is essential—and that same trust must extend to the AI tools and systems in their workflows.
• Stay engaged: Bookmark IRS and Treasury updates, participate in AICPA communities, and leverage new research and best practice guides.

For further resources and updates, visit aicpa.com/townhall.