• Demand for accountants continues despite AI shift, new research shows
• Firms turn to school leavers over graduates
• Three in four mid-tier firms seek more specialist talent

The report on the evolution of mid-tier accountancy firms revealed that while more than two-thirds (68%) of firms felt that AI would reduce demand for some early-career accountants, the vast majority (83%) agreed that this wouldn’t directly result in fewer roles overall.

ICAEW said that mid-tier firms would likely hire more school leavers and fewer graduates, while it forecast the role of the accountant would pivot from routine compliance and reporting to judgement, interpretation and ethical oversight by 2030.

Meanwhile, 71% of firms said that AI would enable them to move up the value chain in terms of their service offering, and 88% said the attractiveness of the profession would not decline amid the perception that accountancy will be replaced by AI.

More specialists and school leavers sought for ‘redefined profession’

As part of this evolution, the report found that three-quarters (74%) of mid-tier firms were expected to increase their hiring of people with expertise in specific areas, including data analytics (100%), technology (96%), sustainability (42%), regulation (38%) and financial advice (35%).

Firms also predicted a shift in recruitment at trainee level, with a 40% fall in graduates likely to be offset by a 49% rise in school leavers. These hiring decisions, ICAEW said, were likely influenced by the recent increases in employer national insurance contributions, changes to Level 7 apprenticeship funding and the impact of employment rights legislation.

Overall, a quarter (26%) of firms cited the impact of changes to apprenticeship funding as a top three talent challenge.

Meanwhile, offshoring (40%) and outsourcing (29%) are also expected to increase as firms seek a more cost-effective solution, the report found.

Alan Vallance, ICAEW Chief Executive, said:

“Our research shows a sector that is confident, adaptive and ambitious but increasingly diverse in structure and approach as it attempts to strike the right balance between technological integration and nurturing and retaining talent.

“It’s clear that traditional linear career paths are giving way to more specialist, modular and technology-enabled structures, while expectations of the future accountant are shifting decisively towards judgement, interpretation and ethical oversight.

“But while these changes bring about opportunity, the profession finds itself at a critical juncture. The impact of AI undoubtedly presents its challenges, but the talent picture is more one of transition than constraint.

“Demand for accountants remains high but the nature of early-career accounting roles is expected to change as technology absorbs routine work, creating both opportunity and tension. The challenge now will focus upon how tech can be integrated at pace but responsibly, and how talent can be developed and retained at a time when roles, skills and career pathways are evolving quickly.”

Tech and AI central to firm strategy

Almost all firms (91%) said that tech plays a key role in delivering strategic objectives, while the majority (86%) noted that their tech strategy explicitly includes AI adoption.

Most firms expect increased use of AI (95%) and automation (91%) in their operating models over the next three years, while AI is already used across core service lines as well as internal knowledge management and client support.

However, two in three (66%) firms are investing in upskilling as less than a fifth (17%) believe they are able to assess the impact of AI on their workforce.

Private equity remains key for mid-tier firms

The report also found that private equity investment (PEI) continues to rise, with 46% of mid-tier firms having now secured PEI, nearly doubling from 25% in 2025.

Firms said their motivations for PEI centred on growth through M&A and talent investment, both cited by 82% of firms this year.

In contrast, only 20% of firms are likely to accept PEI in the next three years while just 5% of independent firms said they would consider PEI, down from 15% last year, suggesting that appetite for PEI may be plateauing.

ENDS

Notes to editors:

The full report is available on request.

1. The full report is available on request
2. Managing Partners and CEOs of 35 mid-tier ICAEW member firms with between 11 and 249 principals took part in the research between February and March 2026.

This research on the evolution of mid-tier accountancy firms explores key themes shaping the profession in 2026, including structural shifts, talent challenges, the impact of technology and AI on operating models and emerging service line offerings.