The UK’s largest accountancy firms – Deloitte, EY, KPMG and PwC – are cutting back on graduate and school leaver recruitment as artificial intelligence (AI) increasingly handles the entry-level work previously assigned to junior employees.
Figures show that all four firms have significantly reduced their intake of junior talent over the past year. KPMG made the steepest cut, reducing its graduate and school leaver recruitment by 29 percent from 1,399 in 2023 to 942. It expects to hire around 1,000 in 2024.
Deloitte’s intake dropped by 18 percent, from 1,700 to 1,400, with no expected growth this year. EY reduced graduate hiring by 11 percent to 1,600, while PwC trimmed its intake by 6 percent to 1,500.
Slashing graduate jobs ‘could be a misstep’
The cuts are being attributed in part to the integration of AI tools, which are now performing many of the administrative and repetitive tasks traditionally handled by junior hires. However, some in the HR sector are warning that reducing graduate opportunities may be a strategic error.
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Ronni Zehavi, CEO and Co-Founder of HR technology provider HiBob, told HR review, “The Big Four’s decision to slash graduate jobs could be a misstep. The claim that AI will replace half of entry-level white-collar jobs is more 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 argued that junior roles remain vital to business, offering new employees an opportunity to gain experience, develop soft skills and learn how to work alongside technology.
“Entry-level roles are evolving, yes – but they’re not disappearing. Instead, they’ll be shaped by new criteria, with greater emphasis on digital fluency, soft skills and the ability to work with AI rather than be replaced by it.”
HiBob research supports this perspective. According to the company, 73 percent of HR leaders say they have been able to hire graduates directly into more senior roles due to AI automating routine work. The result is that junior staff can take on strategic tasks earlier in their careers, accelerating development and potentially shortening the time they spend in entry-level positions.
AI adoption requires oversight and training
Zehavi also said that AI still requires human oversight and argued that effective use of the technology will come from those who are properly trained.
“To alleviate AI fears, HR leaders need to empower employees to leverage the tech. As threats of AI taking jobs persist, many remain too afraid to explore AI and how it could benefit their jobs and careers. HR teams need to be AI champions in the workplace, providing training aligned to employee skills gaps and business needs.”
The potential downside of premature decisions to cut staff was noted in recent findings from Orgvue, an organisational design and planning software provider. Based on research with 1,000 senior leaders, more than half (55%) of businesses that made redundancies following AI deployment later said those decisions were poorly planned.
Zehavi added, “The businesses empowering employees with AI skills will outpace those making mass redundancies. AI doesn’t replace people; it allows them to do more.”
