70% of UK SMBs now act on AI financial advice before consulting their accountants

UK small businesses using AI for financial decisions at unprecedented rates

A striking transformation is underway in how SMBs and accountants interact. According to a report commissioned by Ravical surveying 500 UK SMEs, 70% of small and medium-sized enterprises often or always act on AI financial advice before consulting their human accountants1

1

2

2

. Only 5% rarely or never consult AI before reaching out to their accountants, indicating just how widespread this behavioral shift has become in the accounting industry.

Business leaders are turning to AI-generated financial advice for answering tax questions, responding to financial planning queries, developing business strategies, and triaging routine accounting issues1

1

. In many cases, accountants are now engaged primarily as a secondary layer to validate what AI has already suggested, fundamentally altering the role of accountants in the client relationship.

Dissatisfaction with traditional accounting services drives AI adoption

The shift in financial guidance for SMBs stems from deep frustration with existing services. Only one-third of UK SMEs described their accountant as a genuine working partner who proactively contributes ideas and delivers strategic insight1

1

. This lack of engagement has consequences: 91% of business leaders considered changing accountants during the past year, seeking more advice, quicker responses, forward planning, and proactivity2

2

.

Interestingly, cost isn't the primary issue. A remarkable 92% of SMEs indicated they would pay higher fees if accountants actually delivered the quality of services they wanted1

1

. Business leaders aren't looking for compliance work so much as forward-looking guidance and the proactive identification of opportunities. As Joris Van Der Gucht, CEO, noted: "You become the second opinion, and you have to be better and faster than the tool the client already used"1

1

.

AI in accounting automates compliance tasks and reshapes professional roles

The accounting industry faces a fundamental restructuring as AI handles more foundational work. According to the Ravical report, 90% of SMEs believe compliance tasks could largely be managed by AI within the next few years, while 35% already see this as reality today1

1

. Research from Xero revealed that UK accountants who use AI at work deliver results 31% faster1

1

.

The Institute of Chartered Accountants in England and Wales (ICAEW) found that 85% of accountants are willing to adopt AI technology, with 79% expecting their roles to evolve into that of data guardians who verify AI-generated outputs and expand on them with personalized context1

1

2

2

. The ICAEW report, published in April 2025, emphasizes that human judgment remains crucial, particularly in complex situations requiring nuanced decision-making.

What this means for the future of financial services

AI's role in removing low-value administrative work allows accountants to focus on judgment, strategy, and building deeper client relationships. Rather than replacing human accountants altogether, AI is redefining what business leaders expect from their professional advisors. Accountants who succeed will likely be those who transform freed-up time into higher-value strategic advice and stronger customer relationships. The pressure on traditional accounting firms will only intensify as SMEs become more comfortable with AI-generated insights and demand more than basic compliance from their human advisors.