A study by Sage, together with Demos, reveals that the accounting industry is on the brink of significant transformation as widespread AI adoption in UK accounting practices could add £2bn to GDP, boost exports by £238m and create almost 20,000 jobs.
The research, produced by the cross-party think tank Demos and supported by globally recognised professional accountancy body, the Association of Chartered Certified Accountants (ACCA), shows 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 expect to hire ten times more employees and triple their revenue growth compared to non-users.
All three organisations are urging policymakers to introduce supportive policies to unlock this potential and drive economic growth, showing the critical need for a proactive digital adoption strategy.
The research highlights that the accounting industry, already a major contributor to the UK economy, adding £33.3bn to GDP and employing 323,000 people, could see significant growth through AI.
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.
Key findings:
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData· AI is set to become a driving force for growth. Practices who are leading the way on AI expect to hire ten times more employees and expect their revenue to increase three times faster than those not currently using AI.
· Accountants and bookkeepers are technology optimists. 61% believe AI will create more opportunities than risks with nearly two-thirds (68%) feeling confident that they will be able to adapt to AI.
· 56% of surveyed companies believe AI adoption is crucial for attracting next-generation talent, especially for improving work-life balance.
To help achieve the potential of AI, all three organisations are calling on the new UK Government to implement four key policy initiatives:
1. Invest in boosting AI skills across the industry through a larger, long-term AI Skills Fund and reformed Apprenticeship Levy. Extend the AI Skills Fund to last five years to support a transition to effective implementation of AI.
2. Extend full expensing of capital investment to digital technology. This would allow businesses investing in digital tech, like AI tools, to reduce their tax bill by 25p for every £1 invested.
3. Introduce e-invoicing to support Making Tax Digital. The government should collaborate with the private sector to enhance productivity, reduce late payments, and boost international trade through e-invoicing, which also provides real-time data for better AI solutions.
4. Establish a supportive regulatory framework. The government, regulators, professional bodies, software developers, and accountants should collaborate to create strong standards and ethical principles for AI use.
Sage chief technology officer, Aaron Harris, 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.
“AI adoption in accounting promises economic advantages, improved workplace well-being, and enhanced job satisfaction by automating routine tasks and attracting new talent. Without action to help the industry take advantage of the opportunity, there is a risk to future economic growth, competitiveness, and the UK’s status as a potential science and technology superpower.”
Demos director of policy and impact, Andrew O’Brien, added: “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.”
ACCA head of technology research, Alistair Brisbourne, concluded: “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.”
