Developing the talent to lead accountancy’s AI future

Yes, accountancy work is shifting more towards human-led advisory with AI as a powerful support, but that doesn’t change the long-term need to bring through the next generation of junior talent that will lead the industry.

The talent pipeline in five, or even ten, years isn’t on the list of priorities for some firms, and that will quickly become a huge problem.

The future that is unfolding isn't one where finance and accounting professionals are replaced – but one where their responsibilities will change. Success in this transition depends on making clear assessments of where AI will add value, establishing clear policies and governance in use, and the cultivation of skills that complement technical capabilities.

ACCA expects that coming years will see organisations develop more integrated workflows based on the principle that AI adoption is not just about distinguishing high versus low-value activities – but focusing on outcomes, quality and value.

Only a minority of finance and accounting teams have implemented AI solutions – but these resources are widely available, and organisations are reviewing opportunities and workforce needs.

AI adoption is expected to accelerate in coming years, especially as our data shows investment on AI initiatives is increasing, and widespread cloud adoption provides a crucial foundation for AI implementation.

The profession is still in the invention and adoption stage of AI, as demonstrated by investment data and current adoption/usage statistics. And the profession is embracing the learning and employment challenge offered by AI as shown by the recently announced changes to the ACCA Qualification which embraces emerging advances in technology and sustainability.

The report adds that widescale use of a general-purpose technology, like AI, may take longer than anticipated.

Read How is AI reshaping finance and accounting work?

"Combined global turnover is not the metric by which we measure success," states Christos Christodoulou, founder and CEO. "What matters is how effectively we collaborate to support our clients - and our growing presence on the geopolitical stage. Reaching IAB Top 20 in four years was a fantastic recognition, but even more importantly, it signals that the industry is beginning to acknowledge that the future of professional services isn't about size alone. It's about the depth and breadth of what you can deliver."

The ICAEW data suggests that 71 per cent of firms believe AI will enable them to move up the value chain for their service offering, but that will only happen if the underlying bookkeeping is in order.

Moving to an advisory-heavy model won’t succeed if data sources are scattered and ledgers are siloed. One wrong number pulled from an AI system can cause significant damage and risk breaking the audit trail.

For advisory to work, having the data foundations in place and systems in order for AI to automate from is essential. Advisers need full trust in AI and the audit trails they produce, and the industry needs a generation of new advisers coming through as the older generation retires.

The successful firms will be focused on much more than just implementing AI, they’ll be the ones whose books are in order and surrounded by the right staff to make it work effectively.

Recently, the industry has pivoted from graduates towards school leavers due to employer National Insurance, changes to Level 7 apprenticeship funding, and the impact of employment rights legislation, according to the ICAEW, but that continues to highlight a wider training problem.

Traditionally, new joiners within an accountancy firm would learn by osmosis, spending several years shadowing senior staff, learning their skills and absorbing knowledge. But with AI’s speed, that model simply doesn’t scale anymore.

Then there is the issue of those being trained within the Big Four, who are learning narrow specialisms that are so specific that when they move to a more generalised accountancy practice, there are skill gaps that require time and money to bridge.

The knock-on impact of that is that accountancy firms are poaching staff laterally due to not having the trickle down from the Big Four and not having the time and resources to train entry-level staff.

The broken talent pipeline has now come to light, and is being exacerbated by AI, so now it’s on industry and education to find the solution.

Taking on more school leavers and overly specialised talent requires deliberate and structured training from accountancy firms, focused on best practice and guidelines rather than just osmosis.

Accountancy firms need structured competency and training frameworks to build on skills that staff have picked up during education, industry qualifications or at other firms, until they have learned that firm’s approach to bookkeeping, how errors compound and what a clear file looks like. The first year at the firm is usually crucial when it comes to training, but rather than a length of time approach, these frameworks should require competency sign-off.

With some of the free time saved by AI efficiency for back-office tasks, mentorship can be formalised. Firms can work with dedicated training partners who have ring-fenced time for junior staff, alongside working with senior partners teaching best practices of the firm. That gives school leavers and graduates the best of the old method, with the training required for the AI age of accountancy.

For those utilising the apprentice levy to bring on staff, that funding can also be mapped directly into technical accountancy training, rather than generic leadership programmes.

That means more hands-on learning, more dedicated mentoring time with senior accountants and a more thorough training programme to bring new joiners up to speed. In the long run, it’ll reduce the learning curve and improve the skills of junior staff, also mitigating risks of potential partner liability up the chain.

The demand for accountancy skills remains high and isn’t showing any signs of going away.

So, while a push towards AI to automate back-office tasks drives efficiency in the short-term, if the book is already in order, firms still need to bring through talent to lead advisory in the long-term.

AI is lifting the ceiling for well-run firms but lowering the floor for those that are poorly run. That still depends on people, so the industry must balance the immediate AI push with a talent plan that grows the sector for the future.