Register to get free articles
Want unlimited access? View Plans
Already have an account? Sign in
The accounting industry is on the brink of significant transformation as widespread AI adoption in the UK’s practices could add £2bn to GDP, boost exports by £238m and create almost 20,000 jobs, according to a study by Sage.
The research, which was produced by cross-party think tank Demos with the support of ACCA, found that accountants and bookkeepers are emerging as “AI trailblazers”, adopting the technology at a faster rate than other sectors.
Data shows that AI-enabled practices also expect to hire 10 times more employees and triple their revenue growth compared to non-users.
Meanwhile, the study highlights that the accounting industry is already a major contributor to the UK economy, adding £33.3bn to GDP and employing 323,000 people, which could see further growth through AI.
As a result, all three organisations are urging policymakers to introduce supportive policies to unlock this potential and drive economic growth.
In addition, the Department for Science, Innovation and Technology has discussed the need for greater tech and AI adoption to boost economic growth, and Sage’s report indicates that AI adoption could double in the next five years if the remaining 51% of accountants and bookkeepers take on the technology.
To help achieve the potential of AI, all three organisations are calling on the new Labour government to invest in boosting AI skills across the industry through a larger, long-term AI Skills Fund and reformed Apprenticeship Levy; extend full expensing of capital investment to digital technology; introduce e-invoicing to support Making Tax Digital; and establish a supportive regulatory framework.
Aaron Harris, chief technology officer of Sage, said: “Our research shows the prize for the UK economy if the accounting industry adopts AI. However, the UK currently trails behind other OECD countries in digital technology investment, risking future growth and competitiveness.”
Andrew O’Brien, director of policy and impact at Demos, said: “If the government wants to achieve its ‘first mission’ of delivering sustained economic growth, it must have a plan for accelerating digital adoption across key sectors of our economy, like accounting.
“This research shows that if we get the policy environment right, we can create investment, jobs and exports for the UK economy by backing our accountants and bookkeepers to make the transition towards greater use of AI.”
Alistair Brisbourne, head of technology research at ACCA, added: “It’s really exciting to see that AI adoption is gathering pace amongst UK practices and that it is not just large firms reaping the benefits.
“As the report attests, professional accountants have a firm grounding in the risks associated with AI, data use considerations, and potential efficiency and productivity benefits. As an industry, it is evident that the accounting profession is well placed to utilise these skills to create clarity for businesses and support the development of appropriate frameworks.”
