SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT

     Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934


Date of Report (Date of earliest event reported) June 28, 1996


                      KURZWEIL APPLIED INTELLIGENCE, INC.

             (Exact name of registrant as specified in its charter)

          Delaware                   0-20256                 04-2815079
(State or other jurisdiction       (Commission            (I.R.S. Employer
     of incorporation)              File Number)          Identification No.)


         411 Waverley Oaks Road
         Waltham, Massachusetts                                 02154
(Address of principal executive offices)                       (Zip code)

Registrant's telephone number, including area code: (617) 893-5151



Item 4. Changes In Registrant's Certifying Accountant

By letter dated June 28, 1996, Ernst & Young LLP ("EY") stated that it has 
resigned as the Company's independent public accountants.

EY's report dated March 29, 1996 (except as to Note 3 as to which the date is
May 9, 1996) contained in the Company's Annual Report on Form 10-KSB for the 
fiscal year ended January 31, 1996 contains the following modification:

     "The accompanying financial statements have been prepared assuming
     that Kurzweil Applied Intelligence, Inc. will continue as a going
     concern. As more fully described in Note 3 to the financial
     statements, the Company has incurred substantial losses and had
     negative cash flows from operations in each of the last three fiscal
     years and experienced a decline of approximately 25% in total revenues
     during 1996 compared with the prior year. These conditions raise
     substantial doubt about the Company's ability to continue as a going
     concern. Management's plans with regard to these matters are also
     described in Note 3. The financial statements do not include any
     adjustments to reflect the possible future effects on the
     recoverability and classification of assets or the amounts and
     classification of liabilities that may result from the outcome of this
     uncertainty."

Since January 9, 1995, when EY was first retained as the Company's independent
auditors, the Company has had no disagreements with EY on any matter of
accounting principles or practices, financial statement disclosure or auditing
scope or procedure, which if not resolved to the satisfaction of EY would have
caused it to make reference to the subject matter of the disagreements in
connection with its report.

Since January 9, 1995 no "reportable events" as defined in Item 304(a)(1)(v) of
Regulation S-K have occurred.

A new independent auditor of the Company has not yet been retained.

The Company has requested EY to furnish the Company with a letter addressed to
the Securities and Exchange Commission stating whether it agrees with the
statements made by the Company above and, if not, stating the respects in which
it does not agree. A copy of such letter will be filed in accordance with Item
304(a)(3) of Regulation S-K.



                                   SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the 
registrant has duly caused this report to be signed on its behalf by the 
undersigned thereunto duly authorized.



                                     Kurzweil Applied Intelligence, Inc.

Date: July 2, 1996                      /s/ Thomas E. Brew, Jr.
                                     -----------------------------------
                                            Thomas E. Brew, Jr.
                                            President & Chief Executive Officer