AI could improve up to 100% of key accountancy work functions: ISCA 

About 72% of employers believe AI will be transformative for their businesses.

Artificial intelligence is expected to improve 60% to 100% of key accountant work functions, including assurance, financial accounting, and management accounting, according to Institute of Singapore Chartered Accountants (ISCA)’s "Artificial Intelligence for the Accountancy Industry – What Lies Ahead” whitepaper.

The report also showed that about 72% of employers believe AI will be transformative for their businesses, whilst 82% of employees expect generative AI to enhance their job performance. 

However, the readiness survey indicates that the accountancy sector still needs to develop crucial resources such as infrastructure and data readiness.

"There are strong indications of AI's transformative impact on the accountancy industry. With AI, organisations can achieve more with less and reap productivity benefits. The notion of 'super-accountants' leveraging AI to cover more areas in multiple fields with fewer resources is also exciting,” ISCA President Teo Ser Luck said.

ISCA Council Member and Co-Chair of the ISCA AI Taskforce, Song Yeow Chung, also highlighted the implications of AI for small and medium-sized enterprises (SMEs). He noted that the proliferation of AI would allow SMEs to benefit from a more agile and efficient accounting and finance function, leading to more informed decision-making. 

“Besides improving efficiency and work-life balance, AI augmentation will enable the accounting and finance function in SMEs to better focus on and provide insights into new business opportunities and risks," he said.

Despite concerns about job losses, the report said that AI will create opportunities for upskilling and reskilling, leading to revamped work processes and productivity gains. 

The role of CFOs is expected to evolve, with a focus on strategic functions like business development and risk management, supported by AI-driven insights.

Cyndi Pei, ISCA council member and co-chair of the ISCA AI Taskforce, added, "AI will help CFOs identify business insights and propose action plans, making them stronger business partners with timely forecasts and market analysis."

“AI will also enable CFOs to be stronger business partners with timely forecasts and market analysis which will contribute to sharper execution and help to shape business strategies,” she said. “As a CFO, I look forward to integrating more AI tools into my work to bring more value to the business while elevating the work of the finance team."

Moreover, ISCA's AI for AI initiative will focus on jobs and skills, AI ethics, AI governance, AI adoption, and sustainability. The organisation is also developing a framework for responsible AI use in the accountancy industry to address ethical concerns.