AI adoption within UK accountancy and bookkeeping practices is now said to be signficantly enhancing sector profitability, driving a considerable boost to the wider economy and fundamentally transforming hiring across the industry. This is according to a recent research study released by Xero, the small business platform, in partnership with Cebr (Center for Economics & Business Research) and Censuswide.
It indicates that extensive AI implementation has now resulted in sizeable productivity gains for 46% of United Kingdom’s accountants as well as professional bookkeepers, boosting overall industry profitability by £338 million.
This productivity has led to more economic growth, enabling accounting practices to contribute another “£1 billion to UK GDP and introducing £1.6 billion in Gross Value Added to the larger economy as their customers also take advantage of the efficiencies.”
The vast majority or 98% of practices reported using AI in “some way to complete day-to-day tasks, with around half (47%) using AI at least once a week for an average duration of two hours and 53 minutes per day.”
As a result of this, accountants are now said to be completing these kinds of tasks in “31% less time on average, resulting in considerable time savings: 18 hours and 53 minutes per week for the average practice – which is reportedly half “the typical working week of one employee.””
Reinvesting time saved on “routine administration and accounting tasks into revenue-generating work is enabling increased profitability.”
Despite the tangible impact, practices recorded an “average annual spend of just £1,746 on AI tools and employee training.”
The positive impact of AI adoption is shifting the attributes “that accountants look for when recruiting new staff as the trend for elevated advisory services continues.”
Three quarters (76%) of practices said the emergence of AI has in some way influenced or impacted their practice’s hiring strategy, with the majority or 62% of these claiming that their practice is now hiring “more non-accounting professionals.”
Notably, practices said technical specialists (65%), advisory specialists (63%), those with strong communications and interpersonal skills (63%) and creatives (61%) as key “focus areas for new hires.”
But a lack of proper training (36%) and experience (32%) have been cited in the Xero update as the main obstacles to introducing more AI, “indicating many are still being held back by a lack of resources and skills.”
The figures in this update are said to be based on a research assignment that has been commissioned by Xero and conducted by economics consultancy, Cebr, and Censuswide, who had conducted “an online survey to understand how practices are using AI and the value it is delivering.”
The survey was carried out between the dates of 22nd August – 29th August 2025 and questioned 515 accountants and bookkeepers who “work in a practice with turnover up to £500 million within the UK.”
Responses were obtained from a “mixture of job roles and individuals with various decision-making responsibilities.”