When prices rise, so should expectations: The truth behind AI claims in accounting software

In recent years, price hikes have become a common trend across the accounting software industry, with updates being announced more frequently, not just from a single provider, but across the board. For small business owners, navigating these shifts can be overwhelming. Many switch systems in search of stability, only to be met with yet another unexpected price increase.

These increases don’t just affect budgeting; they can erode business confidence. When confidence dips, investment and hiring slow down, reducing overall economic activity and consumer spending. It’s a ripple effect that’s hard to ignore.

Now, to be fair, companies often justify price hikes by citing improved offerings or greater investment in product quality. In many cases, this is valid as enhancements do require resources. But it also raises an important question: are these price hikes truly reflective of added value, or are they simply being positioned that way?

If improvements are genuinely being made, why is there growing pushback from users across the market? We wanted to explore this further and highlight why businesses should expect more from their accounting software, especially when they’re being asked to pay more for it.

Technological advancement in finance & accounting

Technological progress has been rapid and exponential over the past two decades, with accounting software being no exception. What started as manual accounting transitioned to desktop apps, and now we have the cloud. So what's next?

Unsurprisingly, artificial intelligence (AI) has taken center stage as the next frontier in innovation. AI has made daily tasks easier, especially for those without deep technical expertise. But here's the question: how much of the accounting software truly includes new, AI-driven capabilities? And how much is just automation rebranded under the AI umbrella?

"AI-powered" – The new buzzword

As AI garners global attention, more companies are positioning themselves as “AI-powered” to capture market interest. This trend isn’t limited to accounting; it’s emerging in finance, legal services, and other industries too. The phenomenon is being termed "AI-washing."

AI-washing refers to when companies overstate or falsely claim that their offerings are AI-driven in order to appear more technologically advanced. Similar to green-washing, where companies exaggerate the extent to which they integrate environment-friendly practices, this is a tactic employed to appeal to consumers and gain a competitive edge. Evidently, a 2024 report by Cornerstone research found the number of securities class action filings tied to AI-related misstatements doubled in 2024 versus 2023, with signs pointing to continued growth in 2025.

How can you exercise caution?

If your accounting software provider justifies a price increase by promising new “AI-powered” features, it’s worth pausing to assess what’s really being offered. AI and automation are often mentioned together, but they’re not the same thing. So how do you know if it is true AI, or automation positioned as AI?

Here's the difference:

Automation is about following a set of predefined rules to complete repetitive tasks. AI, on the other hand, is about a system that can learn and adapt. It can analyze data, recognize patterns, and even make decisions based on new information. While automation is great for handling routine jobs efficiently, AI is designed to deal with complexity and unpredictability.

“AI-powered” smart invoicing is one such example of how automation can be marketed as an AI feature. For instance, when an accounting software provider claims, “Our AI-powered smart invoicing automatically sends invoices at the perfect time for faster payments,” what’s likely happening behind the scenes is a predefined set of triggers executing the following actions:

- It sends invoices based on a fixed schedule (e.g. last day of the month or 30 days after a particular date date).
- There is no real-time analysis of customer payment behavior, historical data, or adaptive learning.
- It does not actually predict optimal timing, just executes a pre-set workflow.

In summary, Automation does what it’s told, while AI figures out what to do, and although these are useful features, they cannot be labeled as AI.

So when companies raise prices behind the guise of AI, make sure the value adds up and choose a platform built for customers, not just shareholders.