Calls are growing for greater EU funding to help small and medium-sized practices (SMPs) train for the rapid expansion of AI, amid concerns they risk being left behind by global competitors and the largest accounting networks.
Speaking at a recent ACCA-hosted event at the European Parliament, experts from across the accountancy profession, EU institutions and business groups warned that without targeted investment in digital skills and training, Europe’s SMPs could struggle to keep pace with both the technological transformation of the profession and the growing demands of SME clients.
‘Many SMPs have one or even two hands tied behind their backs’
Key for SMEs
As Regina Doherty, an Irish MEP, says, SMEs remain the backbone of the European economy, but their ability to benefit from AI will depend on the professionals supporting them. ‘Behind every good SME is a really good accountant,’ she says, adding that the profession’s role will only become more critical as companies seek guidance through technological change.
According to ACCA research, a large majority of accountants believe AI will bring major benefits, but SMPs often lack the capital, technical expertise and time required to experiment with new technologies. Large firms, on the other hand, have already committed billions of euros to AI development, integrating advanced analytics and automation into their audit, tax and advisory services.
Maggie McGhee, executive director for strategy and governance at ACCA, says this imbalance risks undermining the competitiveness of Europe’s professional services sector. She argues that many SMPs effectively have ‘one or even two hands tied behind their backs’ because they lack the training and tools needed to exploit AI’s potential for automation, data analysis and decision-making support.
The implications extend beyond the profession itself. Europe’s millions of SMEs rely on local accountants not just for compliance work but increasingly for strategic advice on digital transformation, sustainability reporting and financial planning. If these accountants fall behind in the tech stakes, the SMEs they serve may also lose ground.
AI adoption
Véronique Willems, secretary general of SMEunited, sees AI tools being embraced by a small number of SMEs and ignored by a number of others, with the rest sitting in the middle. ‘What most SMEs do have is an accountant – a trusted partner for the entrepreneurs in running their business,’ she points out. ‘It is very important for organisations to have the resources to cooperate so that knowledge flows and reaches SMPs and SMEs where necessary. European funding is a very important element to ensure that organisations also have the resources to be able to provide and develop this training.’
‘The biggest AI challenge of all lies in the skills dimension’
Andreas Andreou, vice president of the Institute of Certified Public Accountants of Cyprus, agrees. ‘One of the greatest challenges companies face is the substantial initial investment required in hardware and software for digital transformation, especially if they aim to develop AI tools internally,’ he says. ‘However, the biggest challenge lies in the skills dimension, as we are already experiencing a shortage of foundational skills within the accounting profession.’
The ACCA research suggests that a third of accounting professionals have no access to AI training through their employer, highlighting a structural challenge across the sector.
For EU policymakers, the issue intersects with broader economic strategy. Steven Engels, head of professional qualifications and skills for competitiveness at the European Commission, says AI should be viewed less as a threat to jobs and more as a shift in how work is performed. ‘It’ll replace certain tasks, it’ll make certain tasks easier,’ he says. ‘Does that automatically mean the job is disappearing? Not necessarily.’
However, he acknowledges that the labour market is already seeing growing demand for both specialised AI expertise and more basic digital skills, reinforcing the need for training and lifelong learning initiatives.
‘We’re still scrambling at the foothills of what’s possible’
Skills barriers
Leo Kilroy, Ireland’s education and skills attaché to the EU, highlights the structural challenges faced by SMEs when it comes to acquiring new skills. ‘It is lack of resources, lack of time,’ he says. ‘It’s very difficult to organise business continuity, and you have no time and no resources to do this longer-term training.’
The need for EU funding to bridge this gap is particularly pressing given the speed of technological change. Orla Collins, deputy managing director at Aberdeen Ireland and a former ACCA president, says businesses are only beginning to explore what AI can deliver. ‘We’re still scrambling at the foothills of what’s possible with AI, and there’s so much more potential to discover and exploit,’ she says.
Yet even where businesses are experimenting with AI, many have yet to see significant financial returns. For accountants, this reinforces the need for stronger technical expertise and professional judgment. AI tools can automate routine processes such as invoice scanning and reconciliations, but they also introduce new risks related to data quality and cybersecurity.
Andreou says AI adoption requires a workforce capable of understanding and supervising the technology. ‘Companies are also struggling to recruit individuals with AI proficiency and the relevant technical knowledge,’ he says, stressing the need to upskill existing staff as roles evolve from routine processing to higher-value advisory work.
‘The EU needs to implement AI so we do not fall behind the US’
Competitiveness
The fear is that without targeted support, Europe could lag behind competitors such as the US, where tech investment and venture capital funding have accelerated the development of AI-driven professional services. The risk is not only that European accountancy firms lose ground globally, but that SMEs are left without the expertise for navigating the digital transition.
Michalis Hadjipantela, Cypriot MEP and qualified accountant, says: ‘Whatever artificial intelligence is doing, it’s more revolutionary than before. It will help accountancy firms and SMEs save time and save costs.’ But he urges professional bodies to work together with the European Commission to train the accountants of the future and to be ready for AI. ‘This is something we need to implement so we do not fall behind the US.’
More information
Read ACCA’s white paper highlighting key discussion points on AI and the talent challenge
