Seventy percent of UK small and medium-sized enterprises (SMEs) often act on financial advice generated by artificial intelligence (AI) before consulting their accountants, according to a report commissioned by Ravical that surveyed 500 SMEs. Just 5% of businesses rarely or never consult AI before reaching out to their accountants, indicating the growing trend of AI adoption in financial decision-making.
Common applications of AI in these businesses include answering tax inquiries, financial planning, developing business strategies, and managing routine accounting tasks. In many cases, accountants are engaged primarily to validate AI-generated advice rather than to provide the initial insights.
Only one-third of SMEs view their accountants as proactive partners who contribute strategic insights. This perception may be influencing the preference for AI, as many business leaders express dissatisfaction with their current accounting services. Ninety-one percent of respondents considered changing accountants within the past year, seeking more timely advice, better forward planning, and increased proactivity.
Cost does not appear to be a significant barrier; 92% of SMEs indicated they would pay higher fees for improved accounting services. Many leaders are looking for guidance that goes beyond compliance, desiring proactive identification of opportunities.
Joris Van Der Gucht, CEO of a company in the sector, stated, “You become the second opinion, and you have to be better and faster than the tool the client already used.”
Research from Xero indicates that accountants utilizing AI can achieve results 31% faster. Additionally, the Institute of Chartered Accountants in England and Wales (ICAEW) found that 85% of accountants are open to adopting AI technology, with 79% expecting their roles to evolve into that of “data guardians” who verify AI outputs and add personalized context. The report from Ravical notes that foundational compliance work is increasingly automated through AI, changing the role of accountants significantly.
Moreover, 90% of SMEs believe that compliance tasks could largely be managed by AI in the coming years, and 35% already see this as a reality today. As AI handles more low-value administrative tasks, accountants are expected to focus more on strategic advice and relationship building.
The ICAEW report, published in April 2025, emphasizes the continued necessity of human judgment in the field. While AI plays a crucial role in providing immediate financial guidance, trained accountants remain invaluable in complex situations that require nuanced decision-making. Successful accountants will likely adapt by providing higher-value advice and cultivating stronger relationships with their clients.
