The UK’s largest accountancy firms are rethinking early-career recruitment as generative AI and offshoring reshape the entry-level workforce.
Deloitte, EY, KPMG, and PwC have collectively scaled back graduate hiring over the past two years, with some cutting nearly a third of intake volumes.
KPMG made the steepest reduction, trimming its 2023 graduate intake from 1AI in Accounting,399 to 942 – a 29% drop. Deloitte followed with an 18% cut, EY reduced by 11%, and PwC by 6%.
These moves come amid wider cost-cutting efforts across the sector, as firms look to maintain partner returns in the face of a subdued consulting market and tightened client budgets. But the role of AI is becoming harder to ignore.
Automation tools – many powered by generative AI – are increasingly used to carry out basic research, draft content, summarise documents, and check compliance, shaving hours off previously manual tasks. The work traditionally done by new graduates is now being done, in part, by machines.
In parallel, firms are accelerating offshoring strategies, shifting more operational work to lower-cost markets including India, Malaysia, and the Philippines.
Job opportunities for graduates have dropped across the board. According to recent labour market data, graduate job listings in accountancy are down 44% year-on-year, outpacing declines in other sectors.
The Pivot to AI Assurance
While junior roles may be contracting, AI is also opening up new growth opportunities. Big Four firms are rapidly developing AI assurance services – aimed at validating the performance, safety, and ethical compliance of AI models.
Deloitte’s audit partner Richard Tedder has called AI assurance “critical to adoption,” and PwC is reportedly preparing to launch its own offering. EY has made similar commitments, positioning assurance as a strategic priority.
The shift comes as the UK government promotes the nation as a global AI hub. Official estimates suggest AI could add £200bn to the UK economy, with SME adoption alone contributing £78bn over the next decade.
Still, questions of trust remain. Research from KPMG shows that just 42% of the UK public currently trusts AI – and nearly three-quarters of people report having no formal training in how to use it.
The accounting sector is now walking a tightrope: leveraging AI to transform operations while ensuring that public confidence, quality control, and the next generation of talent don’t fall by the wayside.