AI Tools Boost UK Accountancy Firms’ Profits by £338 Million

TL;DR: New Xero research reveals UK accountancy firms have increased profits by £338 million through AI adoption, with 98% now using AI tools. Employees save 19 hours weekly, tasks complete 31% faster, and firms are hiring more non-accounting professionals as AI democratises roles.

New research from Xero has revealed the transformative impact of artificial intelligence on UK accountancy firms, with adoption contributing an additional £1.6 billion to UK GDP. Nearly half (46%) of UK accountants and bookkeepers reported higher productivity thanks to AI-aided workflows.

Widespread Adoption and Time Savings

An overwhelming 98% of firms in the accounting sector now use AI in some capacity. Nearly one in two (47%) finance workers use AI at least once per week, though the average usage reaches approximately three hours per day.

The efficiency gains are substantial: tasks can now be completed around 31% faster than before, with each employee saving approximately 19 hours per week. This recovered time is being reinvested into more revenue-generating work.

Quality and Communication Improvements

The benefits extend beyond speed. More than half (56%) of firms report fewer client work errors, whilst around one in three report completing client work more quickly (32%) or communicating faster and more clearly with clients (31%).

Changing Hiring Strategies

Given the success to date, three-quarters (76%) of practices said AI has influenced their hiring strategy. Notably, 62% are hiring more non-accounting professionals thanks to AI’s role in democratising jobs within the sector.

“[AI] will help with the industry’s talent shortage, and it will amplify human potential within practices, elevating their services to higher level advisory,” explained Stuart Miller, Xero Director of Public Policy & Technology Research.

Challenges and Investment

Key challenges remain, including lack of training (36%) and lack of experience (32%). The average practice spends £1,746 per year on AI tools and training—an investment that appears to be paying dividends.

The Association of Chartered Certified Accountants (ACCA) noted that AI will impact companies’ talent strategies, advising firms to adopt the technology early to “position themselves for success in this new era.”

Looking Forward

The research suggests a significant shift in how accounting firms operate and structure their workforce. The combination of productivity gains, error reduction, and workforce democratisation indicates AI is fundamentally changing the professional services landscape.

The question posed in the headline—“but for how long?”—reflects ongoing concerns about sustainability and long-term impacts as AI capabilities continue to evolve.

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