AI adoption in the accounting sector could add £2 billion to the UK economy, according to a report by the accounting software firm, Sage.
The research also found that AI applications in accounting may also lead to the creation of 19,000 jobs over the next three years, and boost exports by £238 million.
Currently, accounting and bookkeeping contribute £33 billion to the UK GDP, as well as £6 billion in tax revenues.
The report discovered that some in the industry are already ahead in embracing AI.
Comparatively to the 40% of UK businesses who state to be currently piloting or using AI, over half (54%) of accountants and bookkeepers are embracing the technology.
Accountants taking part in the study said the types of AI technologies they are using include chatbots (51%), ML tools (34%), AI-driven insights and reporting (32%), AI-powered document processing (30%), and machine learning for forecasting (29%).
Data from the report also showed that AI-enabled practices expect to hire ten times more employees and triple their revenue growth compared to non-users.
However, Sage, alongside report collaborators Demos, a cross-party think tank based in the UK, and the Association of Chartered Certified Accountants, believe that the UK government needs to introduce policies to guarantee the findings.
“AI adoption in accounting promises economic advantages, improved workplace well-being, and enhanced job satisfaction by automating routine tasks and attracting new talent,” said Aaron Harris, chief technology officer of Sage.
“Without action to help the industry take advantage of the opportunity, there is a risk to future economic growth, competitiveness, and the UK’s status as a potential science and technology superpower.”
Andrew O’Brien, director of policy and impact at Demos argues that if the government wanted to achieve its ‘first mission’ of delivering sustained economic growth, it must have a plan for accelerating digital adoption across key sectors of our economy, like accounting.
“This research shows that if we get the policy environment right, we can create investment, jobs and exports for the UK economy by backing our accountants and bookkeepers to make the transition towards greater use of AI.”
As such, the three organisations are calling on the new UK Government to implement four key policy initiatives.
Suggested measures include boosting AI skills across the industry via an AI Skills Fund Apprenticeship Levy; extending the full expensing of capital investment in digital technology and thirdly, to collaborate with the private sector to introduce e-invoicing, which it believes will enhance productivity, reduce late payments, and boost international trade.
Lastly, the three firms call for the government to establish a supportive regulatory framework.
