The adoption of AI in the UK accounting sector has led to hundreds of millions in increased profits, according to a new report from software group Xero.
In a study from Xero, the Centre for Economics and Business Research and Censuswide, it was claimed that the UK accounting industry has increased its profits by £338m since the extensive adoption of AI technology.
The research has found that the overwhelming majority (98%) of accounting practices are now using AI in some way to complete tasks, which Xero claims has yielded productivity gains saving 18 hours and 53 minutes a week on average.
“AI is driving the greatest reorganisation of human capital in the history of accounting,” said Stuart Miller, director of public policy and technology research at Xero.
“It will help with the industry’s talent shortage, and it will amplify human potential within practices, elevating their services to higher level advisory. Accountancy practices are adapting fast and already seeing huge productivity gains by automating routine tasks.
“But beyond unlocking improved client service with fewer errors and more time to offer strategic advisory, greater efficiency is also driving economic growth by more effectively supporting the UK business community.”
Xero has invested heavily into AI, having rolled out a number of features using the technology.
Though some in the accounting sector have expressed concerns over the risk the technology presents to jobs, Xero’s UK managing director Kate Hayward told UKTN that there is no reason for accountants to fear AI.
Hayward argued that it will simply shift the focus of the job away from manual repetitive tasks and towards high-level critical thinking.
