AI Startup Basis Raises $34 Million in Series A Funding

Artificial intelligence startup Basis has announced a $34 million Series A funding round, led by Khosla Ventures. The investment also saw participation from notable figures and entities such as NFDG, former GitHub CEO Nat Friedman, ex-Apple executive Daniel Gross, OpenAI board members Larry Summers and Adam D'Angelo, and Google's chief scientist Jeff Dean.

Revolutionizing Accounting with AI-Powered Automation

Basis is at the forefront of AI-driven autonomous agents, systems designed to perform actions independently using AI. Their product, tailored for accounting firms, automates various workflows including transaction entry and data accuracy verification, seamlessly integrating with popular ledger systems like Intuit's QuickBooks and Xero.

Enhancing Efficiency and Addressing Workforce Shortages

Large accounting firms have reported significant time savings of up to 30% through Basis's services. The AI agent functions akin to a junior accountant, allowing staff to focus on reviewing rather than manual tasks. This innovation is crucial in addressing the current shortage of accountants, a problem exacerbated by the retirement of baby boomers and the declining interest among younger generations.

The Future of Accounting and AI Disruption

With over 3 million professionals employed in the sector in the U.S., the accounting industry faces a critical shortage. The number of CPA exam candidates has dropped by 33% from 2016 to 2021. Historically, global firms have tackled this by outsourcing to hubs like India. However, AI, as highlighted in a 2023 OpenAI paper, poses a significant disruption, potentially impacting 100% of accountants and auditors' tasks through large language model-driven automation.