Accountancy and finance professionals can augment 60% to 100% of critical work functions with artificial intelligence in assurance, financial accounting, and management accounting, according to a whitepaper released by the Institute of Singapore Chartered Accountants (ISCA).
ISCA views AI as a positive disruptor to enhance and complement the work of accountancy and finance professionals, instead of replacing them, with 72% of employers surveyed agreeing that AI will be a game changer for their business and 82% of employees asked expect Generative AI (Gen AI) to enhance their job performance.
Singapore's national accountancy body adopts a human-centred AI (HCAI) perspective and recognises that AI can bring forth positive disruption, with the approach taking into consideration the design, use, and intention of the AI tool for the human user.
Essentially, this means viewing AI as an instrument to augment and complement the work of accountancy and finance professionals, instead of replacing them.
However, despite the positive sentiments and willingness to take on new AI innovations, an AI readiness survey suggests that the accountancy industry still lacked key resources, in areas like infrastructure and data readiness.
Critical work functions
The whitepaper also reviewed the potential of AI augmentation on critical work functions in accountancy career tracks, deep-diving into three career tracks: Assurance, Financial Accounting and Management Accounting.
“There are strong indications of AI’s transformative impact on the accountancy industry," says Teo Ser Luck, president at ISCA. "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."
"For instance, we may see entrepreneurial ‘super-accountants’ run leaner audit firms with more efficient employees, and still capable of providing a full suite of services through automation and AI augmentation."
No job losses
ISCA's review reveales that the AI integration within finance does not necessarily result in job losses. Instead, the accountancy profession will likely continue to see more opportunities for professional development in terms of upskilling and reskilling.
There would also be positive transformative changes through revamped work processes and productivity gains as AI proliferates.
For example, with financial analyses and forecasts more easily performed with AI augmentation, the Chief Financial Officer (CFO)’s role may no longer be concentrated on financial numbers alone.
The role will change with CFOs increasingly focused on more strategic job functions, such as leading in business development, risk
management, ESG and sustainability, and governance.
Among other attributes, a sharp business acumen, the ability to think critically and creatively, and digital savviness would be the defining features of the future CFO.
ISCA's AI initiative
ISCA’s AI for AI initiative will focus on five areas – jobs and skills, AI ethics, AI governance, AI adoption, and sustainability.
Among other initiatives that ISCA has embarked on, to foster AI adoption, ISCA conducted an AI experiential day earlier this month for small and medium-sized practices to learn about AI-powered accounting solutions.
ISCA will also launch a policy recommendation paper to advocate the development of a human-centred AI ecosystem.
The accountancy body is developing a framework as well for responsible use of AI in the accountancy industry to address ethical concerns.
