A potential solution is an alternative pathway to licensure, a movement which has been spearheaded by states such as Virginia and Ohio. Dozens of other states have passed or are considering comparable reforms as well (“Tracking CPA Licensure Paths: Removing the 150-Hour-Rule Hurdle,” CFO Dive, Aug. 22, 2025, https://tinyurl.com/yrezx7mn). These states will now permit candidates to sit for the Uniform CPA Exam with a bachelor’s degree (120 hours) and two years of relevant professional experience, rather than requiring 150 credit hours. Critics are concerned that the profession’s rig- or could be compromised by reducing the educational component, while supporters contend that real-world training and agile, high-quality brief courses may be equally effective. This alternative has the potential to maintain high standards, manage costs, and provide modern CPAs with the necessary cutting-edge technology and analytics skills, if it is structured effectively.
One promising method of supplying specialized skills to future professionals is the use of short, transferable graduate certificates, each of which concentrates on critical areas such as accounting analytics, business analytics, or machine learning. These targeted credentials may be a great boost to a profession that is in dire need of replenishment and modernization, particularly when combined with practical experience.
The Continuous AI Revolution
The Big Four—Deloitte, PwC, KPMG, and EY—have collectively invested billions of dollars in AI over the past several years: for example, KPMG committed $2 billion to AI initiatives in 2023 (“KPMG to Invest $2 Billion in AI, Cloud Services,” Reuters¸ July 11, 2023, https://tinyurl.com/yn9b6jkz). Their platforms can scan vast data sets at high volumes, minimizing the need for manual labor in auditing, and even predicting potential locations of fraudulent activity. AI-driven tools for invoice matching, accounts payable automation, and advanced analytics are also being progressively adopted by medium-sized firms. Despite the ongoing concerns regarding data security and regulatory requirements, the capacity of AI to expedite routine tasks promises to transform the day-to-day work of accountants. For example, Deloitte’s AI platform can evaluate entire contract repositories for critical terms and anomalies. Similarly, EY is embedding AI into its audit process to analyze large datasets and flag potential fraud risks (“How Do Different Accounting Firms Use AI?” Thomson Reuters, June 3, 2024, https://tinyurl.com/4zp5jctu).
Ideally, CPAs can move into more strategic roles as these more traditional duties are increasingly automated. While algorithms can flag suspicious transactions, a CPA is needed to interpret the surrounding business context and decide whether an anomaly is benign or warrants deeper investigation. This dynamic is reminiscent of modern medicine: AI can notify a physician of potential malignancies in a scan, but diagnosis and treatment are ultimately determined by human expertise.
Universities and professional bodies are rapidly overhauling accounting curricula to keep pace with AI. In 2025, Bloomberg Tax reported that schools from Notre Dame to Georgia State are launching new tech-infused courses and degrees to prepare students for an accounting field “being redefined by emerging technology including artificial intelligence” (J. Siemons, “Colleges Inject AI Into Accounting Programs to Increase Appeal,” Bloomberg Tax, Mar. 7, 2025, https://tinyurl.com/7a2ht9rw). Likewise, the profession’s gatekeepers have formalized this shift. The AICPA’s CPA Evolution initiative revamped the CPA Exam to explicitly emphasize technology and data analytics, adding a core focus on technology and digital acumen and advanced analytics/IT content in every exam section (W. Carter Jr, “Navigating CPA Evolution’s New CPA Exam Model,” AICPA & CIMA, Feb. 29, 2024, https://tinyurl.com/2emhes4w).
Reevaluating the 150-Hour Rule
The gold standard for assuring that CPAs are ready for the current practice environment has been the 150-hour educational requirement, which has been the near universal standard for about two decades. There is a growing body of evidence, however, which indicates that these additional credits do not always correspond to the specialized knowledge that an AI-driven marketplace requires. In the age of AI, accountants are expected to have skills in areas like data analytics. For example, a Gartner survey noted that 58% of finance teams were using AI by 2024, mainly for anomaly and error detection, process automation, and analytics, but also found common hurdles such as “limited data skills” within firms (“Shaping the Future: 6 Takeaways from the AICPA and CPA.com AI Symposium,” CPA.com, 2025, https://tinyurl.com/mskx2m42). In recruiting efforts, educational institutions likewise emphasize technology skills: proficiency in programming language, analytics tools, and cybersecurity are now seen as crucial for accountants to improve efficiency and provide strategic insights (N. Patterson, “Tech Skills Needed to Be an Accountant,” Southern New Hampshire University, https://tinyurl.com/5fe4537h).
The cost of an additional year of tuition can be prohibitive for some students. The profession is at risk of losing promising candidates to rival disciplines that do not mandate as many credit hours or that offer more direct pathways to technological proficiency, as enrollment in accounting programs is already strained. A joint AICPA-NASBA study found a significant curriculum gap: fewer than 50% of accounting departments cover topics like predictive analytics, digital acumen, or cybersecurity in depth (C. Meyer, “6 Ways to Include More Technology in the Accounting Curriculum,” Journal of Accountancy, June 8, 2021, https://tinyurl.com/ykyfjupy). Surveys of students have borne this out. For example, one report on the “pipeline problem” showed the top reasons for not choosing accounting were lack of interest and the appeal of other fields offering faster rewards, closely followed by the 150-hour education hurdle (D. Hood, “Barriers to Entry: Why They’re not Becoming Accountants,” Accounting Today, July 24, 2023, https://tinyurl.com/49dkfbhz). In other words, tech-savvy young talent often perceives accounting curricula as behind the times, pushing them toward more cutting-edge industries.
Ohio (“Major Changes to CPA Exam and Licensure Requirements,” Accountancy Board of Ohio, April 28, 2025, https://tinyurl.com/2p8x5u6a) and Virginia (“Virginia Lawmakers Pass Legislation Introduced at the Request of the VSCPA to Support More Pathways to Become a CPA,” Virginia Society of CPAs, Feb. 17, 2025, https://tinyurl.com/4tyxnpwy) have become early testing grounds for a 120-credit + experience pathway. Both states passed laws (effective 2026) allowing CPA licensure with a bachelor’s degree and two years of relevant experience (in lieu of 150 credits), alongside passing the CPA Exam. Several other states are considering or enacting similar reforms. For example, Utah and Illinois have approved the 120-hour/2-year experience route (CFO Dive 2025). These efforts reflect a broader movement to address the CPA shortage by offering experience-based alternatives, while ensuring that standards remain high. It is a challenge to guarantee that future CPAs continue to acquire a more profound understanding of sophisticated subjects such as data analytics, IT risk management, or even the fundamentals of machine learning.
A Practical Example: Certificates in Accounting Analytics and Technology
The authors propose one potential solution to address this deficit: flexible certificate programs that concentrate on the specific skills that accountants may need. Software engineers routinely earn vendor-specific micro-credentials such as the AWS Certified Solutions Architect, while healthcare professionals complete post-licensure certificates through the American Nurses Credentialing Center (ANCC) to specialize in areas like informatics (“AWS Certified Solutions Architect–Associate,” Amazon, https://tinyurl.com/443vktdr; “Our Certifications,” ANCC, https://tinyurl.com/57adwbmw). These precedents demonstrate that stackable credentials can coexist with, and often enhance, a traditional degree.
Consider for example, four courses included in a graduate-level “Accounting Analytics & Technology” certificate, modeled on Rutgers Business School’s Audit Analytics Certificate (https://tinyurl.com/26xw2r38) and Michigan State’s Accounting Analytics Graduate Certificate (https://tinyurl.com/ykzerce9):
- ▪ The Basics of Accounting Analytics—Introduces the concepts of data governance and conceptual design of analytics in relation to financial statements and auditing processes.
- ▪ Reporting and Data Visualization—Analyzes the most effective methods for developing dashboards, presenting data in a plain manner, and utilizing visualization tools to convey insights to executives or clients.
- ▪ Code-Based Analytics Tools—Teach a programming language, such as Python or R, that is specifically designed for accounting duties, such as the detection of anomalies or the reconciliation of large data sets.
- ▪ Accounting Machine Learning—Examines predictive modeling, anomaly detection, and other AI-driven decision aids that are relevant to audits, tax planning, and advisory services.
New entrants (or even mid-career professionals) can acquire the technical competencies that the traditional 150-hour route may not completely address by stacking these specialized courses. Universities are generally able to update these courses every 1-2 years, helping the curriculum stay current with emerging technologies (a much quicker cycle than in a traditional master’s program), which allows them to remain more flexible than a traditional master’s curriculum. Students in these programs can acquire specific skills without delaying their real-world experience, as they are able to pursue certificates while working at a CPA firm.
The Combination of Education and Experience
One apprehension regarding the reduction of classroom hours is that it may diminish students’ depth of knowledge. In reality, a structured learning program that emphasizes emerging topics can be a powerful complement to two years of pertinent, well-supervised experience. Exhibit 1 illustrates the trade-offs.
EXHIBIT 1
Trade-offs of Classroom Hours Versus Experience
Under the targeted certificate model, novices see directly how data flows, how to interpret irregularities, and how AI tools factor into risk assessment. As soon as they acquire new machine-learning techniques or data visualization skills, they can promptly apply them to actual real-world projects. Far from weakening professional standards, this approach might produce more capable CPAs, ones who are both grounded in fundamental principles and adept at navigating modern automation. In effect, this blended pathway of practical experience plus certificates can produce a CPA even more attuned to modern demands than one who follows the traditional 150-hour academic route, due to the program’s immediacy and focus on up-to-date skills.
Preserving Standards Amid Transformations
Naturally, any alternative to the 150-hour requirement must maintain (or raise) the level of knowledge expected of CPAs. Public trust hinges on the belief that CPAs have a rigorous foundation in GAAP, tax law, professional skepticism, and other cornerstones of the field. Some in the profession warn that substituting education with practical work experience could leave candidates ill-prepared. For example, a 2025 CFO Dive report noted “critics who are concerned that the eased education requirements could lower accounting standards in the profession” if candidates rely solely on varied on-the-job experience (CFO Dive 2025). The AICPA itself has sharply criticized proposals to swap classroom hours for experience, arguing it risks “undermining the integrity” and rigor of the CPA license (J. Edmonds, “Is 150 too Many?” VSCPA, May 10, 2023, https://tinyurl.com/4k9dpww9). Such feedback highlights fears that real-world experience can vary in quality, potentially leaving certain CPA aspirants underprepared.
Stackable certificates can effectively formalize the learning of advanced, tech-oriented topics that might not be covered thoroughly in a conventional academic curriculum. This ensures that professional development is structured and thorough. Firms investing in such frameworks can coordinate with universities to shape the content, essentially co-designing curricula to meet emerging skill needs. At a national level, the new CPA Evolution Model Curriculum (AICPA/NASBA) was created by a task force of more than 40 volunteers from academia, public accounting firms, industry, and state boards, collaboratively defining what to teach for future CPAs, including more technology and analytics content (“AICPA and NASBA Release CPA Evolution Model Curriculum,” AICPA & CIMA, June 14, 2021, https://tinyurl.com/bdhjuzf8). This points the way to how universities and firms co-design accounting programs to modernize education.
In the authors’ view, the synergy provided by “experience plus targeted education” is worth exploring through real world applications. It can become a tangible partnership whereby academic institutions receive feedback from the profession, regularly updating course modules. Meanwhile, CPAs-in-training gain recognized credentials that demonstrate proficiency in areas like data analytics or automation. If carefully monitored, this model can keep the bar high—potentially even higher than a more generic fifth year of credits at the undergraduate or master’s level.
Expanding Access and Diversity
Cost remains a significant concern. The extra year of tuition for 150 hours can push prospective CPAs toward alternative careers in finance, technology, or consulting, especially those who don’t have the financial cushion for graduate school. A more flexible path could draw in candidates from lower-income backgrounds or those supporting families.
In addition, a workforce with diverse backgrounds often brings fresh perspectives, spurring innovation. If stackable certificates and real-world experience lower the barrier to entry, the accounting profession can better reflect a broader range of cultural and socioeconomic experiences. In turn, this can enhance client relationships, problem-solving approaches, and overall public trust.
Practical Steps
The following are some steps CPA firms and universities can take today to ensure current and future graduates meet the profession’s high standards and succeed in tech-centric work:
- ▪ Form Partnerships. CPA firms can collaborate with universities to define certificate curricula that align with current industry needs, such as data analytics, AI-based auditing tools, or advanced IT controls.
- ▪ Set Clear Mentorship Protocols. In those states that allow licensure with a bachelor’s degree plus two years of experience, those two years should be guided by senior staff. Mentors can offer structured learning goals, periodic reviews, and varied engagements so junior associates see multiple facets of the business.
- ▪ Design for Agility. Certificate programs should adapt quickly. Rather than waiting years for new courses to be developed, universities can revise content annually, introducing new AI modules, case studies, or software.
- ▪ Track Outcomes. States piloting the 120-hour + 2-year pathway, in collaboration with firms and universities, should collect data on CPA Exam pass rates, on-the-job performance, and retention. Transparent results will help determine whether the model maintains (or even elevates) professional standards and guide other jurisdictions considering similar reforms.
- ▪ Reward Emerging Skills. CPA firms that offer additional compensation or bonuses for staff who complete analytics or technology certificates can reinforce a culture of continuous learning and signify that advanced tech skills are valued.
A Path to Sustainable Growth
The accounting profession is faced with a choice: cling to old paradigms and lose more students or embrace the best of AI and keep standards high. The latter requires innovation from all corners of the profession—in how states set licensure requirements, how universities develop and update courses, and how firms mentor and compensate new hires.
Two years ago, it was predicted that the accounting profession would be revitalized by attracting a new generation of tech-savvy talent, as a result of increased pay and artificial intelligence (AI) (“AI Will Attract More Students to Accounting: A New Pipeline of CPA Will Provide more than Traditional Accounting Services,” WSJ Opinion, April 10, 2023, https://tinyurl.com/2efb8zeb). While the pipeline challenges remain, there are clear signs that this future is still possible—if the profession seizes the moment. AI is the catalyst for redefining the CPA role as one of analytical expertise, strategic insight, and ethical stewardship of financial data.
Easing the 150-hour rule doesn’t mean abandoning rigor. With stackable credentials and robust on-the-job training, new CPAs can acquire the specialized knowledge once crammed into a fifth year of classes, often at a much lower cost. This alternative has the potential to introduce a more diverse pool of candidates, each better prepared for the actual challenges of practice in 2025 and beyond. By making the most of these reforms, the profession can preserve its time-honored commitment to quality while welcoming fresh perspectives and modern skill sets.
AI is already transforming the accounting profession. The question is whether the profession will channel this momentum to attract and develop the next generation of CPAs who can confidently wield advanced analytics, uphold ethical standards, and guide businesses through an ever more complex financial landscape. If done right, accounting can indeed become a talent magnet, a career of choice for forward-looking individuals who see the potential rewards to join and shape the profession’s future.
