Accounting
Generative AI expected to grow, not shrink, headcount, say polls from major firms
While discourse often centers around the risk of AI eliminating jobs, recent data shows that at least some leaders expect they will actually be growing their headcount as they implement the technology in their organizations.
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These figures differ based on respondents’ self-reported expertise with AI, with those who have more expertise generally expecting more headcount changes, either positively or negatively. Of those who say they are very proficient with AI, 45% predict their organization’s headcount will increase and 23% say it will decrease. Over half (57%) of those with the least expertise, meanwhile, generally expected things to remain the same; in contrast, only 28% of those with high reported expertise believe the same.
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These predictions are part of the overall anticipation that generative AI will change talent strategies. The poll found that three-quarters (75%) of the respondents expect this shift to happen within two years. Only 16% thought it would take longer than that, and 18% say they are making such changes now. As for what changes are expected, the most commonly cited at 48% was “redesigning work processes to take advantage of generative AI,” followed by “designing and implementing upskilling and reskilling strategies” at 47%.
“These survey results suggest a strong need for more attention paid to generative AI’s talent impacts,” said the Deloitte report. “In the near term, AI education and fluency will be especially important to fostering adoption and overcoming initial resistance to change. In the longer term, upskilling or reskilling and redesigning work processes and career paths will likely be essential for capturing generative AI’s full value and positioning workers for future success.”
This data is similar to that found in
They are also working hard on upskilling talent. Over three in four technology business leaders (76%) say they have implemented internal technical certification to help employees keep pace with rapidly changing GenAI. Further, more than half (51%) say they have put external technical certification in place at their company to help keep pace with rapidly changing GenAI. Finally, nearly two-thirds of technology business leaders (64%) say their company has put internal development programs in place to help employees keep pace with rapidly changing GenAI.
“One thing is certain: Companies are reshaping their workforce to be more AI savvy,” said EY technology, media and telecom AI leader Vamsi Duvvuri. “With this transition, we can anticipate a continuous cycle of strategic workforce realignment, characterized by simultaneous layoffs and hiring, and not necessarily in equal volumes. But it’s not all doom and gloom. Employees and companies alike continue to show enthusiasm around AI, specifically when it comes to opportunities to scale and compete more effectively in the marketplace.”
This upskilling, reskilling and shifts to talent strategy are due at least in part to the technical skills and knowledge needed to successfully implement generative AI solutions in an organization. Getting value from generative AI is not always easy. Indeed,
The poll, which included 510 middle-market decision makers in the U.S. and Canada, indicated a great deal of enthusiasm for AI. It found 78% of middle-market organizations are adopting AI, with 77% adopting generative AI in particular. With this enthusiasm has come investment: 89% of executive respondents reported their organizations plan to boost their budgets around AI technologies and 74% are focusing their dollars specifically on generative AI.
Yet, 54% of respondents report that generative AI has been harder to implement than they expected. Further, 67% say they need outside help to get the most out of their generative AI solutions.
“AI and generative AI are making significant impacts to our industry — perhaps more than any previous technology,” said Sergio de la Fe, enterprise digital leader and partner with RSM. “Our survey underscores the necessity for middle-market organizations to develop a comprehensive AI strategy that encompasses the entire value chain. Considering the complexity of AI technologies, it’s no surprise that roughly two-thirds (67%) of middle-market leaders surveyed recognize the need for external assistance to fully capitalize on the advantages of their selected AI solutions.”
Concerns
All three surveys named largely similar concerns regarding AI that give pause to even enthusiastic adopters. The concerns include opacity of the models and their decision-making process, outputs that may not be entirely trustworthy, potential data leaks and cybersecurity attacks, as well as ethical and legal considerations.
Another
“Organizations will not be able to enjoy the full benefits of AI if it is not considered a safe and trustworthy tool,” said the CPA.com report. “… Failure to use AI responsibly could result in financial penalties under new regulations as well as reputational damage.”
The Financial Accounting Standards Board released a
The paper pointed out that construction businesses are often subject to contracts that contain retainage (or retention) provisions.
Companies that operate in the construction industry are frequently subject to contracts that include retainage provisions. Those provisions generally offer a kind of security to the customer by permitting the customer to withhold a portion of the consideration billed by the company until certain project milestones are met or the project is finished.
The revenue recognition standard, also known as Topic 606 or ASC 606 in FASB’s Accounting Standards Codification, offers guidance on the presentation of a contract with a customer on the balance sheet as a contract asset or a contract liability and related disclosures, but lacks specific guidance on retainage.
The educational paper explains the presentation and disclosure requirements in GAAP about retainage for construction contractors and provides some examples of voluntary disclosures of retainage that would provide more detailed information about contract asset and contract liability balances.
The FASB staff received feedback from private company stakeholders in the construction industry, as well as the FASB-affiliated Private Company Council, questioning the proper application of Topic 606 guidance to retainage. Some users of private company financial statements, including sureties, provided feedback that information about retainage is important to their analysis.
The educational paper aims to clarify the presentation and disclosure requirements in GAAP about retainage for construction contractors and provide example voluntary disclosures of retainage that would currently be permissible under GAAP and would provide users with more detailed information about contract asset and contract liability balances.
The educational paper doesn’t change or modify current GAAP and isn’t intended to be a comprehensive assessment of the accounting for retainage in accordance with Topic 606. The exhibits included in the paper are for illustrative purposes and don’t create additional requirements beyond those in current GAAP. Entities should refer to current GAAP and consider entity-specific facts and circumstances when preparing financial statements.
Hourly earnings and job growth for workers in small businesses remained mostly unchanged last month, according to payroll provider Paychex.
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The national Small Business Jobs Index dipped 0.29 percentage points to 99.75 in March, slightly less than the pace set at the end of the past two quarters. At 2.91%, hourly earnings growth stayed below 3% for the fifth month in a row in March, while one-month annualized hourly earnings growth (3.51%) outpaced annual growth (2.91%) for the fourth consecutive month.
“We don’t see any signs of recession,” said Frank Fiorille, vice president of risk, compliance and data analytics at Paychex. “It looks like they’re still doing OK, not gangbusters, but still keeping up with the range that they have done the past few months.”
The Midwest remained the top region for the 10th consecutive month on small business job growth, despite slowing 0.58 percentage points in March. Texas continued to lead the other states on small business job growth in March, while Minneapolis gained 1.87 percentage points to move into first place in March among metropolitan areas. The manufacturing industry gained 1.05 percentage points during the first quarter of 2025 to perform best among the industry sectors on job growth.
On the wage front, Tampa topped the other metro areas in March in terms of both hourly earnings growth (4.20%) and weekly earnings growth (4.00%).
Fiorille doesn’t see much impact on small businesses yet from the tariffs that President Trump administration has
He advises accountants to keep an eye on further developments on tariffs, tax changes and the steady stream of executive orders from the White House.
Prague & Co. was founded in 1988 and has a team of 15 professionals. Its services include accounting, tax and fund administration services to individuals, partnerships and corporations worldwide.
The firm focuses on high-net-worth individuals and alternative investment vehicles engaged in the real estate, timber, private equity and venture capital sectors. (The law firm of Prague & Peters PLLC is not part of the combination and will remain an independent law firm.)
“With 37 years of dedicated service to our clients, I’m proud of how our tax and accounting practice has grown while still adhering to the highest levels of quality and personal attentiveness. In evaluating the next steps and how to offer even more, combining with EisnerAmper provides the perfect solution. We’re excited about what this means for our clients and our team,” said founder Andrew Prague in a statement Tuesday.
Financial terms of the deal were not disclosed. EisnerAmper’s Eisner Advisory Group ranked No. 15 on Accounting Today‘s list of the
“With each client, Prague & Company works to understand the intricacies and nuances of each situation and then provides tailored guidance,” said Jay Weinstein, EisnerAmper’s vice chair of industries and markets, in a statement. “As we look to the future, the team at Prague & Company will enhance our Boston presence while deepening our expertise in trusts, estates, foundations, nonprofit organizations, and closely held businesses. We warmly welcome them to the EisnerAmper family.”
EisnerAmper has been busy on the M&A front since it
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