September 2024
Accountants and bookkeepers have emerged as the new AI trailblazers, adopting the technology at a much faster rate than any other sector.
New research from Sage and ACCA, along with cross-party thinktank Demos, reveals artificial intelligence adoption among accountants is set to double in the next five years.
And it has been estimated that the widespread adoption of AI by UK accountancy practices will add £2 billion to the UK’s GDP and create nearly 20,000 jobs.
The researchers also believe these AI-enabled practices will hire 10 times more employees and triple their revenue growth, compared with non-users.
The report found that accountants are technology optimists, with 61% of those surveyed believing AI creates more opportunities than risks. Some two- thirds of respondents (68%) also felt confident that they will be able to adapt to AI.
Sage’s Aaron Harris felt AI is no longer a futuristic concept. He said: “From chatbots that enhance client communication to automation of routine tasks like processing invoices and generating data insights to improve cash flow, AI is set to become a driving force of growth within the industry.”
Harris pointed out that AI’s benefits go beyond productivity and can reduce workloads, improve well- being and increase job satisfaction.
Ultimately, Harris felt the move to AI will attract new talent to the profession and help address current skills shortages.
To help achieve the potential of AI, all three organisations are now calling on the UK government to implement four key policy initiatives:
- 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.
- 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.
- 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.
- 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.
