AI will reshape accounting, but jobs in Singapore remain safe for now: Chartered accountants body

SINGAPORE – AI is transforming accounting work but it has not led to broad-based job cuts, particularly among junior hires, said the Institute of Singapore Chartered Accountants (ISCA) as it set aside $1 million in funding after Budget 2026 to strengthen AI skills.

Artificial intelligence is not eliminating the need for accountants, ISCA chief executive Fann Kor told The Straits Times. Instead, digital readiness is now fundamental to the accounting role and expected of every professional.

“Capabilities such as digital adoption, data management and innovation have already been core competencies for accountants.

“AI represents a natural deepening of these expectations, increasing the need for professionals to evaluate technologies critically, manage data responsibly and apply sound judgment,” she said.

Despite wider AI adoption, ISCA said there is no clear sign of cuts to junior hiring for now. Recent graduate data showed full employment for accountancy graduates from the National University of Singapore and 96 per cent employment for those from Nanyang Technological University.

Meanwhile, enrolments in accounting programmes have risen, and ISCA’s student membership grew 50 per cent in 2025. Fewer than 1 per cent of members sought unemployment support.

Evolving expectations

What is clear is that employer expectations are shifting as AI becomes more integral to accounting work.

“What we are seeing is a shift in skills expectations. Employers increasingly value digital literacy and comfort with data and technology tools,” Ms Kor said.

She added that the higher bar applies to both fresh hires and mid-career professionals, even as recent engagements by ISCA and the Association of Small and Medium Enterprises showed widespread concern within the profession over AI-related job displacement.

To support this shift, ISCA said on Feb 16 that it will set aside $1 million to launch an AI Fluency Programme in partnership with the Infocomm Media Development Authority, following Budget 2026’s strong emphasis on AI adoption.

The programme will help practitioners understand how AI can be applied in real workflows, its limitations, and how to use it responsibly in areas such as audit, reporting and core financial processes.

Funded under ISCA’s Artificial Intelligence for the Accountancy Industry initiative, the programme will be offered free to Singaporean and permanent resident professional accountants and is expected to benefit the sector’s 120,000-strong workforce.

This new funding comes on top of ISCA’s $2 million Career Support Programme launched in 2025, which offers career coaching, job matching and skills upgrading for accountants exploring new roles.

Entrenching AI in accounting

Some employers are already embedding AI into workplace expectations, in some cases linking it directly to performance reviews and promotions.

Professional services firm Accenture, for example, has reportedly begun tracking how often staff use its AI tools, making adoption a factor in leadership promotions, according to media reports.

The firm reportedly told associate directors and senior managers that promotion to top roles would require “regular adoption” of AI, according to people familiar with the matter and an internal e-mail seen by the Financial Times.

In February, it started collecting data on individual weekly log-ins to its AI systems for some senior employees.

The New York-listed group said more than 550,000 employees have been trained in generative AI. In 2025, the firm was reported to have laid off 11,000 employees in a major AI restructuring.

Singapore’s finance sector, which includes professional services such as accounting and audit, was also identified by Prime Minister Lawrence Wong in Budget 2026 as one of four sectors targeted for AI-led transformation.

Mr Song Yeow Chung, co-chairman of ISCA’s AI for Accountancy Industry Taskforce, noted in a statement that many accounting professionals are eager but unsure of how to apply AI meaningfully in their work.

He explained that for accountants, AI is not about replacing judgment. “It’s about freeing up time from routine tasks so we can focus on deeper analysis and better advice.”

ISCA president Teo Ser Luck said AI would enhance the role of accountants by automating repetitive processes and allowing them to play a more strategic role in guiding business decisions.

Ms Kor noted that some meaningful measures of AI-driven productivity at the organisation level include shorter financial reporting cycles, improved accuracy, stronger internal controls, and higher-quality insights for management.

“At the profession level, success should translate into better audit quality and more sustainable work-life outcomes.”

She added that AI is already being deployed in audit, finance and tax functions.

In audit work, existing AI tools can analyse transactions to flag anomalies, support journal entry testing and summarise contracts.

In financial reporting, AI assists in drafting notes to accounts, extracting data, and generating first-cut reports. In finance operations, it can automate calculations and match transactions across systems.

When asked about the risk of AI making mistakes in audit and reporting work, Ms Kor said there has not been a major public incident in the accountancy sector so far.

This is partly because adoption in core assurance work has been cautious, with AI largely used at the transaction level rather than in forming final opinions.

Strong review processes and regulatory inspections provide additional safeguards, and accountants are trained to apply their professional scepticism.

“Ultimately, AI replaces manual processes. Accountability rests with the professional, not the technology,” Ms Kor said.

“Auditors still form the opinion, and management remains responsible for financial statements.”