Fungibility and optionality may not be skills-related terms that you are familiar with – but for ambitious individuals and firms looking to have the edge over their peers, they are increasingly important differentiators.

Against a backdrop of intense upheaval, economic uncertainty and the rise and rise of artificial intelligence (AI), it’s a pivotal time for skills. “It's probably the biggest transition in skills policy that the global economy and the UK economy is going to face since the Second World War, when advanced economies saw a big rise in white collar work and the start of services-based economies,” says Iain Wright, Chief Policy and Communications Officer at ICAEW. 

“We’ve got a technological revolution, the potential of which is bigger than the Industrial Revolution. The transition away from fossil fuel towards a sustainable economy is also raising questions about how we can be less reliant on the Middle East so we’re not at the mercy of volatile oil prices, and this will require a different set of skills.”

Meanwhile, the world is becoming more competitive, Wright says. “We have to be able to be enterprising, take risks and be resilient to maintain and expand our living standards over the next 10 to 20 years.”

Government must align policy efforts

The accountancy profession is by no means immune to the forces at play. The government’s Industrial Strategy, published in June last year, has already identified professional and business services as one of eight growth sectors. But translating that potential into economic advantage requires policy alignment and a commitment to support the private sector to lay the foundations for economic competitiveness, Wright says.

The decision to restrict Level 7 apprenticeship funding to those aged 16-21 from 1 January 2026 will hinder sector growth, particularly across smaller and regional firms, Wright warns.

“Constant changes to policy don’t allow businesses to plan,” he says. “We need clear goals, strong state-industry collaboration, and long-term certainty—especially for investment. There is no better investment than people’s ambitions and future achievements, but that depends on a stable, predictable skills policy.”

Skills and careers are evolving

The good news is that entry into the profession remains strong, with graduate and apprenticeship routes continuing to attract high levels of interest and completion. The biggest challenge, according to ICAEW member firms, is ensuring new entrants to the profession develop the business-ready, technology-enabled and ethical judgement skills required in a rapidly evolving environment.

Meanwhile, we’re seeing a new generation of employees for whom a linear career is an increasingly alien concept. The idea of a career that’s “one and done” simply doesn’t apply anymore, says Dana Day, ICAEW Chief Learning Officer. “With a flexible mindset, people joining the workforce expect that they will need to adapt to industry and jobs market changes. It’s our job to prepare them.”

As a professional body that trains, supports, and represents chartered accountants worldwide, ICAEW has a responsibility to empower professionals to adapt to the way work is changing. Day says: “We must equip people with skills that allow them to steer a non-linear career journey. Skills are dynamic and they will continue to evolve.”

At the same time, AI literacy is becoming as fundamental as tools like Excel once were. AI won’t take accountants’ jobs tomorrow, but its use is already a career differentiator, according to Day. “People who know how to leverage AI use it to go faster and do their job even better. It also means technical accounting knowledge will be the minimum requirements when you start a job,” she says.

Flexibility key to futureproofing

In response to this transformation of the skills landscape, ICAEW launched the Next Generation ACA last autumn. While the ACA syllabus has always been updated according to an annual cycle of practitioner feedback, the September 2025 release was the biggest change to the qualification in a generation. It is designed to continue to give industry professionals the solid foundation on which to base their careers, now with the flexibility to focus on a range of specialised learning options which ICAEW quickly adapts and evolves to cover emerging topics and skills.   

“Standards haven't changed. The core of what it means to be an ICAEW Chartered Accountant remains at the same high standard our members are known for around the world. What has changed is that we've introduced a degree of flexibility so that learners can shape some of their journey,” explains Day.

“If you want to become more knowledgeable in corporate finance, AI, or develop leadership skills, for example, our Specialised Learning and Tech Hub mechanisms now make that part of the ACA package. That's the game changer,” she says.

“The ACA qualification provides a nimble way of learning, optionality, and an increased focus on the formation of the ‘whole professional’. If we create learning that allows someone to flex across roles and even teams within a firm, employers feel resourced to anticipate and respond to client needs. That modularity, that optionality, that fungibility happens throughout an entire career, and professionals who are equipped to work that way will thrive,” Day says.

“What I love about the ACA in particular is that it goes beyond the ‘technical’ into strategy, ethics, and decision-making – the ‘whole professional’.”

Employers need to think differently

For firms grappling with skills challenges, thinking laterally is key, Day says. “I want to partner with employers to leverage core and satellite skill sets. Hire for one and train the other. You get a lot more flexibility in the business when you attract and empower talent that sees the benefit of being versatile.”

For individuals, it hinges on that growth mindset that recognises learning and CPD as an opportunity to stay relevant. “Part of being a professional is creating optionality in your own career, whether that means breadth or depth – always learning, so that you can continue to be the best professional you can be.”

The accountancy profession could still do a better job when it comes to highlighting the flexibility of career options opened up by studying for and achieving the ACA, Day admits.

“The opportunities are there but I’m not sure we're doing a good enough job of highlighting just how broad and flexible the career path for an ACA is,” she says.

“Accounting skills and knowledge are the foundation of any career in finance. Even though everyone has a similar formative experience, the variety in people's career paths is vast; no two are alike. Look at the extraordinary journeys and achievements of so many of our members. I hope I get to hear many of those stories in the months ahead.”