Graduate Jobs are at Risk as AI Takes Over

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South African accountants take note: the Big Four in the UK are cutting back sharply on graduate hiring as AI continues to take over entry-level tasks.

Over the past two years, Deloitte, EY, KPMG, and PwC have all reduced their graduate recruitment, with KPMG making the deepest cuts—a 33% drop in graduate intake from 1,399 to 942. Deloitte followed with an 18% reduction, EY by 11%, and PwC by 6%.

These changes are driven by cost pressures and a push to maintain partner profits in a tighter post-COVID market. More significantly, generative AI tools like ChatGPT are increasingly replacing the admin-heavy work once assigned to junior staff. The firms are also shifting more work offshore to hubs in India, Malaysia, and the Philippines.

Job ads for graduate roles in accountancy have dropped 44% year on year in the UK, a signal that AI isn't just a buzzword, it's reshaping career pathways.

However, there is a silver lining. The Big Four are now investing in "AI assurance" services, auditing the safety and effectiveness of AI systems, as demand from clients grows. This new service line could be a key growth area, both for firms and for professionals willing to upskill.

What can South African practices learn from this? It is clear that entry-level work is changing fast. Those who adapt and build skills in AI-related services could be best positioned for the future.

Source Article: CityAM