Big Four slash graduate jobs as AI takes on entry level work
The UK’s Big Four accountancy firms are cutting hundreds of jobs and pulling back sharply on graduate recruitment, as artificial intelligence (AI) begins replacing the junior roles once filled by school and university graduates.
Deloitte, EY, KMPG and PwC – which cumulatively employ around 100,000 people across the UK – have all stripped back early-career hiring over the last two years, slashing intake by as much as 29 per cent, in some cases.
KPMG has made the steepest cuts, trimming its 2023 graduate intakes from 1,399 to just 942.
Deloitte reduced its own scheme by 18 per cent, while EY and PwC followed with 11 per cent and six per cent cuts respectively.
Cost-cutting AI expansion
The job cuts come as firms look to preserve seven-figure partner payouts amid a post-Covid consulting slump, and shrinking client budgets.
Generative AI tools like ChatGPT are increasingly being used to automate administrative tasks usually performed by entry-level employees – accelerating the shift.
“The Big Four are looking at AI very seriously to replicate junior work more cost-effectively”, said James O’Dowd of executive search firm Patrick Morgan.
Alongside job reductions, all four firms have expanded their offshoring efforts, pushing more work to lower-cost hubs in India, Malaysia and the Philippines.
Indeed, data has shown that graduate job adverts in accountancy are also down 44 per cent year on year, outpacing the wider slump in overall graduate listings.
AI assurance – the new growth area
Even as they cut junior roles, Big Four firms are racing to profit from the AI boom.
Deloitte, PwC and EY are developing AI assurance services – auditing tools that verify the performance and safety of AI models – in response to escalating demand.
Deloitte’s audit partner Richard Tedder called AI assurance “critical to adoption”, while PwC is reportedly launching its own service “soon”.
This comes amid broader ambitions to position the UK as a global AI hub, with government figures showing AI could add £200bn to the economy.
The same research found that SME adoption alone could offer a £78bn boost over the next decade.
But public trust remains a challenge, with KPMG research showing that just 42 per cent of Brits trust AI, and nearly three-quarters lack formal training in it.