The Big Four’s new favourite grad is AI

The UK’s largest accountancy firms are rethinking early-career recruitment as generative AI and offshoring reshape the entry-level workforce. Deloitte, EY, KPMG, and PwC have collectively scaled back graduate hiring over the past two years, with some cutting nearly a third of intake volumes. KPMG made the steepest reduction, trimming its 2023 graduate intake from 1,399 to 942—a 29% drop. Deloitte followed with an 18% cut, EY reduced by 11%, and PwC by 6%. These moves come amid wider cost-cutting efforts across the sector, as firms look to maintain partner returns in the face of a subdued consulting market and tightened client budgets.

Impact of AI and Offshoring

Automation tools—many powered by generative AI—are increasingly used to carry out basic research, draft content, summarize documents, and check compliance, reducing the need for manual tasks traditionally performed by new graduates. In parallel, firms are accelerating offshoring strategies, shifting more operational work to lower-cost markets including India, Malaysia, and the Philippines. Graduate job opportunities in accountancy have dropped 44% year-on-year, outpacing declines in other sectors.

Emerging Opportunities in AI Assurance

While junior roles may be contracting, AI is also creating new growth opportunities. Big Four firms are rapidly developing AI assurance services to validate the performance, safety, and ethical compliance of AI models. Deloitte’s audit partner Richard Tedder has called AI assurance “critical to adoption,” while PwC and EY are positioning it as a strategic priority. The UK government estimates AI could add £200bn to the economy, with SME adoption contributing £78bn over the next decade.

Challenges and Public Trust

Despite growth potential, public trust in AI remains low. Research from KPMG shows only 42% of the UK public trusts AI, with nearly three-quarters lacking formal training in its use. The accounting sector must balance AI-driven transformation with maintaining public confidence, quality control, and talent development.