The accountancy body’s research says AI is reshaping the profession rather than causing its decline.

While technology is successfully automating routine administrative tasks and reducing some demand for traditional early-career positions, 83% of surveyed mid-tier firms agree that it will not decrease overall headcount. Instead, the profession is experiencing a major structural shift, as evidenced by the sector hitting a record £4 billion in monthly revenue in March.

The nature of accounting work is moving up the value chain, becoming more specialised, modular, and technology-enabled. Nearly three-quarters of managing partners and chief executives expect to increase hiring, but they are specifically targeting talent with expertise in data analytics, technology, regulation, and sustainability.

ICAEW chief executive Alan Vallance told City AM: “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.”

Concurrently, entry-level recruitment strategies are shifting due to a combination of technological change and economic pressures, including new employment laws, increased employers’ National Insurance contributions, and cuts to apprenticeship funding.

ICAEW’s research shows 40% of firms predict a cutback on hiring university graduates. To bridge this gap, firms are shifting their focus toward younger talent, with plans to increase the intake of 18-year-old school leavers by nearly 50%.