AI Targets Accounting’s Labor Crunch: Marble Raises $9 Million to Automate Tax Work

The accounting industry, facing a severe labor shortage and escalating regulatory complexity, is increasingly turning to artificial intelligence for relief. Marble, a startup developing AI agents for tax professionals, recently secured $9 million in seed funding led by Susa Ventures, with participation from MXV Capital and Konrad Capital. This investment signals a growing belief that AI can address fundamental challenges within a sector historically slow to adopt new technologies.

A Profession Under Pressure

The demand for accounting services remains robust, fueled by a complex tax landscape and stringent compliance requirements. However, the supply of qualified professionals is dwindling. Since 2019, the accounting profession has lost roughly 340,000 workers – a 17% decline – leaving firms struggling to meet client needs. This exodus is compounded by a declining pipeline of new entrants; the number of first-time candidates taking the Certified Public Accountant (CPA) exam dropped 33% between 2016 and 2021, according to data from the AICPA.

The demographic shift is a key driver. Approximately 75% of licensed CPAs were approaching retirement age by 2019, creating a significant gap that the industry has yet to fill. This situation is particularly acute as the tax code becomes increasingly intricate. “Fewer CPAs are getting certified year over year,” explains Bhavin Shah, Marble’s CEO. “The industry is compressing at the same time that there’s more work to be done and the tax code is getting more complicated.”

Beyond Automation: Reimagining the Accountant’s Role

Marble isn’t simply aiming to automate existing tasks; the company envisions a fundamental shift in how accounting work is performed. The startup has launched a free AI-powered tax research tool designed to convert complex government tax data into accessible, citation-backed answers for practitioners. This is a stepping stone towards more sophisticated AI agents capable of analyzing compliance scenarios and, eventually, automating portions of tax preparation workflows.

This approach differs from the adoption of AI in other knowledge industries. While AI has rapidly transformed fields like law – with companies like Harvey raising substantial funding – and software development – through coding assistants like Cursor – accounting has lagged. Geordie Konrad, Marble’s executive chairman, attributes this to a different conceptualization of AI’s capabilities. “It was obvious to many people that LLMs could do meaningful work by manipulating code for software developers and manipulating words for lawyers. In the accounting industry, LLMs are going to be used as reasoning agents,” he says.

Economic Impact and the Rise of Generative AI

The potential economic impact of AI in accounting is substantial. The US accounting industry generates $250 billion in fee-based billing annually, presenting a significant opportunity for efficiency gains and margin improvement. According to a recent report by Avalara and Hanover Research, adoption of AI among finance and tax teams has more than doubled in the past year, with 84% now utilizing AI heavily in their operations, up from 47% in 2024. This surge in adoption reflects a growing recognition of AI’s potential to alleviate the labor shortage and address increasing regulatory burdens.

However, the transition isn’t without its challenges. Data security remains a paramount concern. Accounting firms handle highly sensitive financial information, and any AI solution must meet stringent security standards. According to Avalara’s survey, 63% of respondents cited data security and privacy concerns as the top barriers to automating tax and finance functions.

A Global Perspective on Productivity

The need for increased productivity in professional services, including accounting, is a global trend. The OECD reports that labor productivity growth in the United States slowed to 1.2% in 2023, highlighting the urgency for businesses to adopt technologies that can enhance efficiency. AI offers a potential pathway to accelerate productivity gains and address the challenges posed by demographic shifts and labor shortages.

Marble’s founders believe that AI will not simply replace accountants but will enable them to focus on higher-value advisory work. The 2025 AICPA National Management of an Accounting Practice Survey supports this view, showing firms reporting a median 6.7% increase in net client fees, with growth across all service areas. This suggests that firms are already benefiting from increased demand and are poised to leverage AI to further expand their service offerings.

The company’s strategy of offering a free research tool is designed to build trust and demonstrate the value of its AI-powered solutions. “It allows us to expose a really compelling product that is purpose-built to those that are worried about how to use AI or question how to adopt it,” Shah explains. “Now they don’t have to think about purchasing something that is cost-prohibitive when they don’t know how to integrate it into their workflow.”

Marble faces competition from established players like Thomson Reuters and Intuit, as well as other well-funded startups like BlueJ. However, the company believes its focus on reasoning agents and its commitment to data security will differentiate it in the market. The future of accounting, it seems, is increasingly intertwined with the evolution of artificial intelligence.