We share predictions for the key trends and events that will shape life in the accountancy profession.
1 You’ll be using AI more
Artificial intelligence has taken off since OpenAI released its free-to-use ChatGPT bot at the end of 2022, and its meteoric rise will continue. Research by Sage and think tank Demos predicts that more than half of UK accounting practices will adopt AI technologies over the next five years, creating nearly 20,000 jobs and adding £2 billion to GDP. For accountants, the power of AI lies in automating routine tasks, freeing up time to focus on higher-value analytical and advisory work, as well as enabling better decision-making through deeper data insights.
You can also read more about AI and automation here and listen to our podcast on the subject here.
2 Cybersecurity will be a priority
As technology becomes ever-more sophisticated, so too does cyber crime. In May, global engineering firm Arup revealed it had been the victim of a £20m ‘deepfake’ fraud involving an AI-generated video call. Accountants work with sensitive financial information that’s hugely valuable to cyber criminals, so you’ll need to stay vigilant and ensure you’re adopting enhanced security protocols such as password protection, encryption and multifactor authentication.
Read more about cyber security here and explore the ICAEW cyber security hub here.
3 Trump officially becomes US president (again)
On 20 January, Donald Trump will be inaugurated as the 47th President of the United States. Every President brings with them new economic policy, and Trump has announced that he will introduce a 25% tariff on imports from Canada and Mexico and an additional 10% on goods from China. Global trade has already taken a hit following Covid and the conflict in Ukraine, and this could stall things further. However, the second Trump presidency could be good news for some businesses, as he has also promised looser regulation and lower taxes.
Read more about the impact of Trump’s tariffs on global trade here.
4 Quantum will be the buzzword
You may have heard about the advent of quantum computing, and the buzz around it will be getting louder. The UN has declared 2025 the ‘International Year of Quantum Science and Technology,’ and the first quantum computers are predicted to be arriving within 10 years.
Unlike classical computers, which use binary bits to store and process data, quantum computers use quantum bits, or qubits. While a binary bit can only be on or off (0 or 1), qubits can exist in an ‘in between’ state of on and off at the same time – think of it as a coin spinning before it lands on heads or tails (see an explainer from the FT here). What this all means in practice is that complex problems that might take a classical computer thousands of years to solve could be done in minutes. When it arrives, quantum computing will be seriously disruptive, and there are huge implications for data security in particular.
5 Budget ripples will continue
In the UK, Labour’s first Budget in October delivered some seismic tax changes. Key amongst Chancellor Rachel Reeves’ announcements was an increase in employer National Insurance contributions – both a lower threshold and a higher rate – which are likely to impact pay and recruitment across sectors. Retail and hospitality businesses in particular are predicting job losses and rising costs for consumers, especially coupled with higher business rates and a rise in the minimum wage also announced in the Budget. The government has also faced high-profile criticism from farmers, with plans to restrict agricultural property relief on Inheritance Tax to the first £1 million worth of assets, while opinion is divided on the introduction of VAT on private school fees.
Read ICAEW’s analysis of the Budget here.
6 You might be spending more time in the office
Amazon and Asda are among the big names who summoned employees back to the office five days a week towards the end of 2024. It’s a trend that has been gathering pace, reversing flexible working policies that have been the norm since 2020. Younger people are more likely to spend time in the office than older colleagues, according to a recent survey by Centre for Cities. It found that 18 to 24-year-olds in London are on site 3.1 days a week on average, while 35 to 44-year-olds spend 2.5 days in the office.
7 You’ll be doing more non-financial reporting
Accountants are increasingly incorporating Environmental, Social and Governance (ESG) factors into their annual reporting. The International Sustainability Standards Board (ISSB) was created in 2021 to set global standards for sustainability reporting, and published its first two standards, IFRS S1 and IFRS S2, in 2023. The UK government is now creating its first two UK Sustainability Reporting Standards (SRS) based on these, with drafts published for consultation in the first quarter of 2025. The standards will apply to all UK-listed companies, with mandatory reporting from 1 January 2026..
ICAEW’s virtual ‘ESG – how should the financial statements reflect sustainability?’ event will be taking place in March, July and September 2025. Find out more and book here.
8 You’ll be in demand
There’s a well-documented skills shortage in the accountancy profession. Those with digital-first skills in areas such as AI, data analytics and cloud computing are particularly in demand – and will continue to be. As an ACA student, you’re already developing a foundation of knowledge, skills and experience in key areas – and there is plenty of opportunity to take it further and carve out the career you want.
To future-proof your skills, start with the programme of training and events on offer from ICAEW, and join the Faculties and Communities in the areas that interest you. It’s also worth joining your local student society if you haven’t already, for networking opportunities and career support.