By Anna Tong
(Reuters) – Artificial intelligence startup Basis has raised $34 million in a Series A funding round for its AI-powered accounting automation product, the company said on Tuesday.
The round was led by Khosla Ventures. Other investors included NFDG, the AI-focused fund run by former GitHub CEO Nat Friedman and former Apple (NASDAQ:AAPL) executive Daniel Gross, OpenAI board members Larry Summers and Adam D’Angelo, and Google (NASDAQ:GOOGL)’s chief scientist Jeff Dean.
New York-based Basis is part of a category of AI startups creating autonomous agents, or systems that use AI to perform actions on their own. Executives in the field such as OpenAI CFO Sarah Friar have said such systems will dominate the AI agenda next year, as models have recently gotten to the point where they can carry out long-term planning.
Basis’ product, which they specifically sell to accounting firms, is capable of performing various workflows such as entering transactions and double-checking data accuracy, and integrates with popular ledger systems like Intuit (NASDAQ:INTU)’s QuickBooks and Xero, the company said.
Large accounting firms like Wiss, which employs 450 accountants, have seen up to 30% in time reduction from using Basis, the company’s CEO Matt Harpe told Reuters.
The product, which functions like a junior accountant, allows staff accountants to spend their time reviewing the AI agent’s work, rather than doing the work manually, Harpe said.
Basis helps to solve the current critical shortage of accountants, Khosla Ventures managing director Keith Rabois told Reuters, as baby boomers retire and younger generations opt out of the profession.
The sector employs over 3 million in the U.S., according to the Bureau of Labor Statistics. But the number of candidates sitting for the annual CPA exam decreased by 33% from 2016 to 2021, according to the Association of International Certified Professional Accountants.
Global accounting firms have historically dealt with the shortage by setting up shop in outsourcing hubs like India.
Accounting is also among the sectors most vulnerable to AI disruption. A 2023 OpenAI paper concluded that large language model-driven automation could impact 100% of accountants and auditors’ tasks.