AI in accounting and bookkeeping: Bridging the skills gap

In 2025, artificial intelligence has shifted from hype to necessity. It is no longer something firms simply experiment with on the side and has established itself as a practical answer to workforce shortages, particularly in accounting and bookkeeping where skills gaps are widening. It is becoming increasingly clear that firms adopting AI are gaining ground, while those that hesitate are struggling to keep pace. 

Equally, the pace of AI innovation is unlike anything we have seen. Change is happening faster than most firms can plan for and as with any major innovation wave, the government’s posture towards the technology will prove vital. In the UK, the recent Prosperity Deal with the USA and the AI Action Plan announced in January reveal promising signs that stronger foundations are being established for widespread adoption.   

However, despite the fact 71% of accountants and bookkeepers are ready to upgrade their AI skills, less than a quarter (23%) receive AI-related training from their organisations. For firms, the risk is clear – each quarter brings new advances, and the competitive gap between those that adopt the technology and those that don’t will only continue to widen.  

It’s Not About The Tools – It’s About How You Use Them

Previously, moving from manual ledgers to spreadsheets defined innovation. Now, the real distinction lies between organisations still locked into outdated desktop tools and those implementing AI-native cloud systems designed to address shortages in skills and people. 

However, adoption is only the first hurdle. To maintain an edge, accounting and bookkeeping practices must also commit to continuous learning, keeping up with the latest features, updates, and capabilities. As we know, AI-native tools never remain static; they learn and improve over time, becoming more valuable with every use.  

But simply having the latest AI tools won’t determine the winners and losers. The real advantage comes from knowing what to use, when to use it, and adapting faster than others. Tools are only as powerful as the people directing them, and today we even have tools smart enough to use other tools. Ultimately, success rests with the firms that can combine human judgement with the best of AI capability. 

This ongoing evolution is essential in a digital landscape that changes rapidly and rewards those who adapt and accounting and bookkeeping is firmly positioned to reap significant benefits from the adoption of AI, especially as it grapples with a widening talent gap.    

Tackling the Talent Pipeline

A recent survey revealed that almost a third of accountants under 25 were considering leaving the profession within five years. This comes at a time when the average age of an accountant in the UK is reportedly 46, according to the Consultative Committee of Accountancy Bodies (CCAB). With many edging towards retirement and fewer replacements in training, the pipeline looks thin with low pay, burnout and inflexible hours all contributing to discouraging younger professionals. 

However, AI marks a pivotal moment to reverse the current tide. Rather than viewing it as a threat, the industry should use the technology to modernise workflows and create a more dynamic working environment. With over two-thirds (67%) of young people considering a career in tech, it’s clear the next generation want roles where they can put their technical skills to work. This makes it increasingly vital the accounting and bookkeeping sector consistently promotes the real impact of tech across the profession, whether that’s in terms of unlocking greater efficiencies, uncovering key trends or driving smarter business outcomes.  

AI also has the potential to transform the perception of the sector. Having worked as an accountant for more than 20 years, I know firsthand the stereotype of accountants being “stuffy” is outdated. But, it persists among outsiders. AI can help change this narrative by highlighting the profession’s role in insights, strategy and high-level decision market. With general tools such as ChatGPT and sector-specific platforms designed for bookkeeping and finance handling routine work, there is much greater scope for professionals to deliver higher-value services. 

These benefits of automation not only ease the strain on a shrinking workforce, but also to reduce the reliance on outdated processes creating a more dynamic, technology‑driven environment that aligns with the expectations of younger talent looking for meaningful, future‑ready careers.  

From Repetition to Insight: The AI Shift

One of the key benefits of AI lies in its ability to unlock capacity, close skills gaps, and elevate the value accountants and bookkeepers deliver. Applied AI, where technology is embedded directly into workflows, is already automating data processing and reconciliation and agentic AI is taking things a step further by intelligently establishing guidance and rules for manual tasks and executing them autonomously. Junior accountants and bookkeepers can rely on these systems for the heavy lifting while focusing on validation and interpretation, building the judgement skills that are critical to the profession. 

For senior professionals, less time spent on manual checks means more capacity to advise on financial management, tax, and planning for growth. They can also involve less experienced team members in higher-value projects sooner, making careers in the sector more engaging. As the technology becomes ubiquitous, the real advantage lies in asking better questions of the data and interpreting results in ways that guide clients’ decisions. 

To make this shift successful, firms need to invest not only in the right technology but also in training and change management. Accountants and bookkeepers at every level should feel confident using these tools and understand how to balance automation with human oversight. The recent introduction of technology-focussed content into the ACA qualification signals a growing recognition of this transition at an industry body level and firms that also support this evolution will stand out in a competitive hiring market, attracting talent that wants to be part of an industry that’s moving forward, not stuck in the past. 

Faster, Smarter, Digital: Meeting Modern Demands 

The most competitive businesses today are setting new benchmarks for speed, responsiveness, and client experience. Global players such as Amazon and Uber have changed expectations across industries, compelling others to rethink how they deliver value. Although these examples may seem far removed from accounting and bookkeeping, the same demands are being felt – clients now want faster turnaround, proactive guidance, and seamless digital interactions. 

AI provides the tools to meet these expectations, levelling the playing field for firms of every size. By automating processes like quoting, payroll, and invoicing, AI releases valuable time and resources that can be redirected towards higher-value activities such as client service, strategic planning, and innovation. For smaller practices, in particular, this technology offers the ability to compete with much larger organisations, delivering insights and services that would previously have been beyond reach. 

For the profession itself, the impact is transformative. Accountants and bookkeepers are shifting away from repetitive data entry and towards higher-order work – validating insights, applying professional judgement, and advising clients with a richer, real-time view of their finances. This evolution also makes the field more attractive to the next generation, who are seeking careers that combine technology with meaningful, impactful work rather than routine manual processes. 

AI does not diminish the human role; it strengthens it. Firms that take advantage of these tools will be the ones able to close the skills gap, attract top talent, and redefine the value accountants bring. Ultimately, they will be the firms that last – offering clients the speed, strategic advice, and digital service they have come to expect in today’s fast-moving economy.