- Nearly 70 per cent of UK mid-tier firms expect AI to reduce some junior accounting work.
- Most firms still expect overall hiring demand for accountants to remain strong.
- School leaver recruitment is projected to rise as firms cut graduate intake.
Artificial intelligence may be changing how accountants work, but it is not yet pushing firms away from hiring people altogether. Instead, UK accountancy firms appear to be redesigning the profession around technology, specialist skills and cheaper recruitment pathways.
That is one of the clearest messages emerging from new research published by ICAEW on May 22, which looked at how mid-tier UK accounting firms are adapting to AI, rising employment costs and shifting client demands.
The report found that 68 per cent of firms believe AI will reduce demand for some early-career accounting roles, particularly routine compliance and reporting work. Yet despite those concerns, 83 per cent said they do not expect overall job numbers to fall.
Instead, many firms appear to believe the profession is moving into a transition phase where accountants spend less time on repetitive tasks and more time interpreting data, advising clients and handling ethical oversight.
From spreadsheets to specialist skills
The biggest shift may not be whether accountants are needed, but what kind of accountants firms now want.
According to the research, around 74 per cent of mid-tier firms expect to increase hiring for specialist roles over the coming years. Demand is strongest for people with expertise in data analytics and technology, while firms are also looking more closely at sustainability, regulation and financial advisory skills.
The findings suggest AI is increasingly being treated as part of mainstream business strategy rather than an experimental tool. Nearly all firms surveyed said technology plays a central role in meeting strategic goals, while 86 per cent already include AI adoption in their business planning.
Most firms also expect automation and AI use to rise sharply across their operations over the next three years, including client services, internal systems and knowledge management.
At the same time, firms appear uncertain about how quickly these changes could reshape the workforce. Only 17 per cent said they currently feel confident assessing AI’s long-term impact on employees, while two-thirds are investing in staff upskilling programmes.
School leavers move up the hiring ladder
One of the more noticeable changes emerging from the report is a growing preference for school leavers over graduates.
The study predicts graduate recruitment at trainee level could fall by around 40 per cent, while hiring of school leavers may rise by nearly 49 per cent. Industry observers suggest firms are increasingly looking for lower-cost hiring models as employer national insurance contributions rise and apprenticeship funding rules change.
Around 26 per cent of firms identified changes to apprenticeship funding as one of their biggest talent challenges.
Cost pressures are also pushing firms towards offshoring and outsourcing. The report found that 40 per cent of firms expect to increase offshoring, while 29 per cent anticipate greater outsourcing activity as they look for more cost-effective operations.
Alan Vallance reportedly said the accounting sector remains “confident, adaptive and ambitious”, but added that traditional career structures are beginning to break apart as technology changes expectations around the profession.
He reportedly said future accountants are likely to focus more on judgement, interpretation and ethical oversight rather than repetitive compliance tasks.
The report also pointed to changing attitudes towards private equity investment in the sector.
Around 46 per cent of mid-tier firms have now secured private equity backing, up sharply from 25 per cent in 2025. Most firms said the investment was mainly being used to fund mergers, acquisitions and talent expansion.
However, the appetite for future deals appears to be cooling slightly. Only 20 per cent of firms said they are likely to seek private equity investment over the next three years. Among independent firms, just 5 per cent said they would consider it, down from 15 per cent last year.
The ICAEW research was based on responses from 35 managing partners and chief executives from mid-tier member firms surveyed between February and March 2026.
