AI Won't Steal Jobs: 94% of NZ Accounting Firms Say No Layoffs, Here's Why

AI in Accounting: A Job Creator, Not a Job Killer

A new survey from Xero reveals that 94% of New Zealand accounting and bookkeeping firms do not expect AI to reduce their team sizes in the next year. The study, which polled 526 senior professionals, suggests that AI is reshaping workloads rather than eliminating jobs.

The Numbers Behind the Shift

• 78% of practices have experimented with AI, and 49% now use it in daily workflows.
• Firms report an average time saving of 7 hours per week per staff member, translating to annual savings of about AUD $145,000.
• Top-performing firms save even more: 10 hours per week and AUD $200,000 annually.

Instead of cutting staff, firms are redirecting these time savings into higher-value advisory services. 42% of accountants and 30% of bookkeepers say they are shifting freed-up time into advisory work.

"There's been a lot of focus on whether AI will replace accounting jobs. What this research shows is a different kind of change: technology is taking pressure out of routine work, while practices are putting more time into advice, relationships and growth," said Bridget Snelling, Country Manager, Xero New Zealand.

Hiring Shifts: New Roles Emerge

AI is also changing how firms hire. 61% of practices say AI has already altered their recruitment approach, with 35% placing greater emphasis on soft skills and relationship management. One in five firms are now recruiting for non-traditional roles such as data analysts and tax technologists.

Process Discipline: The Key to AI Success

Firms with stronger process discipline are more likely to be active AI users. Among daily AI users, 89% have well-documented core processes, compared to just 30% of non-users.

"AI works best when it's applied to a clearly understood process, not dropped into a practice and expected to improve everything," said James Bergin, EGM of Technology Research and Advocacy at Xero.

Advisory Services Drive Profitability

The research also highlights the growing importance of advisory services. 59% of NZ practices offer advisory, and for those firms, it's their top-earning service. Among firms not offering advisory, 27% cite lack of capacity as the main barrier.

Value-based pricing is also on the rise: 66% of client engagements are billed on non-hourly terms, and 45% of firms using value-based pricing say it has made them more profitable.

Top-performing practices are 2.2 times more profitable than lower-margin peers, thanks to embedded AI, higher-value services, and disciplined pricing.

Case Study: Oxygen Advisors

Oxygen Advisors, an outsourced finance function for high-growth tech companies, delivers 85% of its work through CFO partners in strategy, capital raising, and financial decision-making. The firm has also invested in internal automation, with four technically minded accountants building tools like accounts payable automation and consolidated client summaries.

"Technology is giving accounting firms the opportunity to spend less time on repetitive work and more time helping clients make better decisions," said Matt Dold, Founder of Oxygen Advisors.

The Bottom Line

AI is not replacing accountants—it's transforming their roles. Firms that embrace AI and focus on advisory services are seeing significant time and cost savings, while also creating new opportunities for growth and specialization.