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Accountants in the UK remain in high demand despite the impact of artificial intelligence on jobs, according to the latest research from the Institute of Chartered Accountants in England and Wales (ICAEW).
The report into mid-tier accountancy firms revealed that while 68% of firms felt AI would reduce demand for some early-career accountants, 83% agreed this would not result in fewer roles overall.
The organisation said mid-tier firms would likely hire more school leavers and fewer graduates. This is because it forecast the role of the accountant would pivot from routine compliance to judgement, interpretation and ethical oversight by 2030.
Meanwhile, 71% of firms said AI would enable them to move up the value chain. Another 88% said the attractiveness of the profession would not decline amid perceptions that technology will replace accountants.
The report found that 74% of mid-tier firms expected to increase hiring of people with specialist expertise. This includes data analytics (100%), technology (96%), sustainability (42%), regulation (38%) and financial advice (35%).
Firms also predicted a shift in recruitment at trainee level, with a 40% fall in graduates likely to be offset by a 49% rise in school leavers.
The organisation said these hiring decisions were likely influenced by recent increases in employer national insurance contributions, changes to apprenticeship funding and the impact of employment rights legislation.
Overall, 26% of firms cited the impact of changes to apprenticeship funding as a top three talent challenge. Offshoring (40%) and outsourcing (29%) are also expected to increase as firms seek cost-effective solutions.
Almost all firms (91%) said technology plays a key role in delivering strategic objectives, while 86% noted that their strategy explicitly includes AI adoption.
Most firms expect increased use of AI (95%) and automation (91%) in their operating models over the next three years.
However, 66% of firms are investing in upskilling as only 17% believe they can assess the impact of AI on their workforce.
The report also found that private equity investment continues to rise, with 46% of mid-tier firms having now secured backing, up from 25% in 2025.
Firms said motivations for private equity investment centred on growth through mergers and acquisitions and talent investment, both cited by 82% of firms.
In contrast, only 20% of firms are likely to accept private equity investment in the next three years, suggesting that appetite may be plateauing.
Alan Vallance, chief executive of the ICAEW, said: “Our research shows a sector that is confident, adaptive and ambitious but increasingly diverse in structure and approach as it attempts to strike the right balance between technological integration and nurturing and retaining talent.
“Demand for accountants remains high but the nature of early-career accounting roles is expected to change as technology absorbs routine work, creating both opportunity and tension. The challenge now will focus upon how tech can be integrated at pace but responsibly, and how talent can be developed and retained at a time when roles, skills and career pathways are evolving quickly.”
