Home / Latest News And Updates / AI in the UK: What Accountants Need to Know About the Government’s New Investment
28 Jan 2025
On 13th January, the UK Government announced a significant investment in artificial intelligence (AI) to the tune of £14bn! This investment is set to have far reaching implications for things like:
The aim: to integrate the technology into various aspects of public and private life. For accountants, this development could bring some important changes. While much of the focus has been on areas like healthcare and education, AI is set to impact the accountancy profession and its clients in meaningful ways. Here's what you need to know.
During the announcement, The Prime Minister highlighted the potential of AI to transform industries. To drive this forward, the government tasked its AI adviser, Matt Clifford, to create a comprehensive UK AI Opportunities Action Plan which includes 50 recommendations, all of which are set to be implemented to help the UK is position itself as a key global hub for AI development.
The goal is to attract AI investors, entrepreneurs, and developers to the UK while ensuring the benefits extend to workers and businesses nationwide. Leading tech firms have already pledged £14 billion towards AI projects, which are expected to create over 13,000 jobs. A new technology hub in Liverpool alone will generate 1,000 roles. This investment will also foster opportunities for today’s workforce and help develop the skills needed for the future.
The strategy is built on three main pillars:
1. Building the Foundations for AI
2. Encouraging Adoption Across Sectors
3. Maintaining Momentum
For accountants, the rise of AI brings huge opportunities but adjustments must be made to take advantage of them. Here are some key points to consider:
One of the most relevant parts of the announcement is Recommendation 48, which involves appointing AI Sector Champions in industries such as financial services, life sciences, and creative industries. This means the government is prioritising support for AI adoption in accountancy, with more details expected in Summer 2025.
AI has the potential to significantly streamline processes that often consume valuable time. Just as AI could help teachers with lesson planning or local councils with road maintenance, accountants could benefit from tools that automatically handle account reconciliation, analyse tax returns, or flag compliance issues.
There has also been a specific mention on record keeping for small businesses. It will likely fall on accountants to support their clients to utilise technology for this, whether embedded in existing systems or showcasing new software on offer.
The broader impact of AI will also affect the businesses accountants work with. For instance:
The government’s plan to increase the UK’s computing power twentyfold by 2030 highlights how quickly things are evolving. Accountants who fail to adapt could risk being left behind.
Now is the time to explore tools like automated bookkeeping, predictive analytics, and AI-powered fraud detection. Staying ahead of these changes is critical.
The government has acknowledged that new technologies can create uncertainty. Concerns about ethical issues or job displacement are valid, but initiatives like the National Data Library, designed to securely unlock the value of public data, aim to ensure AI is developed responsibly and transparently.
Kier Starmer also suggested that the UK will not have to adhere to the policies of the EU or US, which should mean quicker decisions and being more agile to get to desired outcomes.
This investment in AI represents an exciting opportunity for the UK’s economy, and accountants are well-positioned to benefit. Whether it’s through streamlined workflows, smarter tools, or helping clients navigate the changing landscape, there’s much to gain. The key message is clear: start exploring how AI can enhance your practice now. Waiting too long could mean falling behind in a rapidly changing industry.
Stay tuned for further updates on this topic, and consider how these developments could shape the future of your work. The AI era is here, and the accountancy profession has an important role to play.
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