This research paper examines the use of Artificial Intelligence (AI) in the accounting sector, with a specific focus on the service industry. Using both primary and secondary data, the study analyzes the growth of AI in the accounting sector, assessing professionals' understanding and knowledge of AI adoption. It highlights AI's potential to enhance efficiency, decision making, and client service. The study also explores the future outlook of AI in accounting, including increased adoption, advancements in Natural Language Processing (NLP), and the growing demand for AI-skilled accountants. By investigating the intersection of AI and accounting, the research provides valuable insights for professionals, policymakers, and researchers aiming to understand the evolving landscape of the accounting industry. The study explores how AI technologies—such as Machine Learning and Robotic Process Automation (RPA)—are transforming accounting functions. Through a combination of literature review, case studies, and expert interviews, the research identifies key areas where AI is being effectively implemented, including automated data entry, fraud detection, real-time financial analysis, and client communication. The study also examines challenges faced by service-based firms, such as high implementation costs, data privacy concerns, and the need for employee up skilling. Findings suggest that while AI adoption in the accounting departments of service industry firms is still in the early stages, it holds significant potential to streamline operations and support strategic growth. The paper concludes with recommendations for a phased AI adoption strategy and the development of ethical guidelines to ensure the responsible use of AI in financial management.