Hundreds of graduate jobs have been slashed at the UK’s biggest accountancy firms as the Big Four turn to artificial intelligence to handle routine junior tasks.
KPMG has made the biggest cut, reducing its 2023 graduate intake by 29%, from 1,399 to just 942 roles. Deloitte’s graduate scheme shrank by 18%, while EY and PwC made smaller but still significant cuts of 11% and 6% respectively.
The reductions mark a sharp shift in the traditional career pathway for university leavers and school leavers alike. While the Big Four have long offered one of the largest entry-level routes into white-collar work, that model is rapidly changing as firms restructure to reduce costs and capitalise on AI’s potential to automate repetitive work once done by junior staff.
At the same time, all four firms are expanding offshoring to lower-cost hubs in India, Malaysia and the Philippines, a move that further shrinks the need for entry-level UK-based talent. Graduate job adverts across the accountancy sector are down 44% year on year, according to labour market data.
Jobs out, AI in, but is the narrative wrong?
While automation and cost-cutting explain the cuts, critics argue the Big Four are making a short-sighted move. Ronni Zehavi, CEO and co-founder of HR-tech company HiBob, says the decision risks misreading AI’s role in the workforce.
“The Big Four’s decision to slash graduate jobs could be a misstep,” he says.
“The claim that AI will replace half of entry-level white-collar jobs is most likely based on speculation than reality. While AI is certainly changing how we work, particularly in automating repetitive tasks, the idea of widespread replacement is greatly exaggerated.”
Zehavi points to HiBob’s own research, which found that 73% of HR leaders say AI is enabling them to hire graduates directly into higher-level roles. In other words, automation may be shifting the nature of entry-level work, but it doesn’t eliminate the need for fresh talent.
He adds: “Businesses will always need fresh talent, and experience, adaptability, and human judgement will continue to offer value that AI can’t replicate. Entry-level roles are evolving, yes, but they’re not disappearing.”
Zehavi says employers should focus on giving staff the skills to work with AI, rather than removing them entirely from the picture: “The businesses empowering employees with AI skills will outpace those making mass redundancies. AI doesn’t replace people; it allows them to do more with more.”
AI assurance emerges as the next growth area
Despite job losses, the Big Four are investing heavily in AI in other ways. Deloitte, PwC and EY are developing AI assurance services, tools designed to audit the performance, fairness and safety of artificial intelligence systems.
Deloitte audit partner Richard Tedder has called this work “critical to adoption,” while PwC is preparing to launch its own AI assurance offering in response to growing client demand. It's a sign that while AI may be eliminating certain roles, it’s also creating new revenue streams, and possibly new career paths, within professional services.
What remains to be seen is whether firms will rebuild a talent pipeline to fill them.
Source: hrgrapevine.com