From number-crunching to decision-making: Teo Ser Luck on how AI is reshaping accounting

SINGAPORE – Artificial intelligence is set to reshape the accounting profession, shifting work away from transaction processing and data management towards generating insights and advising on business decisions.

The shift could reduce entry-level roles, while requiring fresh graduates to take on analytical and critical thinking work much earlier in their careers.

That may not be a bad thing, and could even be exciting, Mr Teo Ser Luck, outgoing president of the Institute of Singapore Chartered Accountants (ISCA), told The Straits Times in an interview.

The former MP and minister of state, who left politics in 2020, has been president of Singapore’s national accounting body since April 2022, and will end his four-year tenure by the end of April.

The conversation about AI in accounting comes at a time when concerns over job displacement as a result of the technology are on the rise. At the same time, interest in the profession has also increased, with ISCA’s membership up by more than a third to 44,800 in January, from 33,274 at the end of 2021.

With AI, tasks that once took hours – data entry, analysing financial statements, spotting anomalies or summarising complex information – can now be done in minutes, but the technology’s true value lies beyond speed, Mr Teo said.

“AI helps validate what you think you know, and even surfaces insights you may have missed when processing all that information. It helps you work faster and think smarter.”

But he noted that judgment calls and business decisions must still rest with the professional.

“Someone must be responsible and it can’t be a machine.”

He explained that typically, accountants may make audit decisions using only about 60 per cent of the available data. But with AI analysing larger datasets and surfacing patterns, that can rise to around 80 per cent.

“The machine gets you from 60 per cent to 80 per cent. But the final 20 per cent – taking you to 100 per cent – comes from human thinking, discussion and judgment,” Mr Teo said.

“Someone must be able to back and support the financial information and decisions presented to investors and the broader market,” Mr Teo said.

“That implies that accountants will always have a job and play a critical role in an organisation.”

Different impact on leaders, fresh grads

Still, as AI becomes more widely used in accounting, it is set to transform how the profession operates both at the leadership and entry levels.

At the leadership level, AI is increasingly used as a second opinion.

For key decision-makers like Mr Teo, AI helps address a common leadership challenge – isolation.

“At senior levels, it can be lonely. AI becomes another channel to bounce ideas off and test ‘what if’ scenarios,” he said.

Mr Teo uses several large language models to test ideas and explore different scenarios, asking the same question across platforms and comparing outputs to gain a more rounded view.

“I ask the same question across two or three platforms, compare the responses and get a sense of where each one performs better.”

When asked how he ensures data security, Mr Teo said he avoids sharing sensitive information in full. “It depends on what you put in. I don’t upload everything – I may use hypothetical numbers, for example.”

AI may enhance decision-making at the top, but its implications for fresh graduates are more complex.

Entry-level tasks such as checking ledgers and reconciling accounts, once a staple for junior accountants, are increasingly automated or handled by software, while data analysis can be taken over by AI and done much faster.

This means some traditional junior roles may shrink or disappear. But it also opens the door for graduates to enter the workforce at a higher level, focusing on deeper analysis and business insight rather than routine processing.

“The work becomes more exciting. You are doing analysis and connecting the dots earlier, instead of spending years on manual work,” Mr Teo said.

“Accountants are no longer just crunching numbers. They must now add value by helping the business make better decisions,” he said.

Having more than just accounting skills

While building a career in accounting is still promising, having technical accounting knowledge alone is no longer enough for fresh grads to land a job in the profession.

To ensure employability, they must broaden their skill sets, understanding areas such as economics, technology and industry dynamics to connect the financial data with real-world outcomes.

“You need to be able to discuss more than accounting. That’s how you add value,” Mr Teo said.

This shift is being reflected in universities, which are updating their curricula to include a wider range of skills in the accounting syllabus.

“The good thing is that everyone knows something needs to be done, and they are doing it,” he said, adding that professional bodies are also working to build a stronger pipeline of chartered accountants while supporting those already in the workforce.

But formal education can provide only a foundation. Beyond that, individuals must take responsibility for continuously upgrading their skills as technology evolves.

“You have to make learning a priority. Technology is advancing so quickly; if you don’t keep learning, you will fall behind,” he said.

Mr Teo added that learning should go beyond technical skills, and he encouraged young professionals to broaden their knowledge and perspectives through reading more or gaining exposure to different fields and working cultures.

Risks of over-reliance

Still, the rise of AI in accounting comes with some clear risks.

Mr Teo warned that blindly copying outputs without understanding them can weaken critical thinking. “If you cut and paste wholesale, you are doing yourself a disservice. You stop learning,” he said.

Another risk is over-reliance on the technology in decision-making. “Never let the machine make the decision for you. That is where your value lies,” he added.

Signs of over-reliance include accepting outputs without questioning them, being unable to explain conclusions independently, and losing confidence in one’s own judgment. AI, he stressed, should be used to challenge thinking and not replace it.

“If you find yourself questioning AI, that’s when you’re thinking and using it right,” he said.

The profession’s transformation also explains why accounting has been identified as a key sector under Singapore’s AI initiatives in Budget 2026.

Mr Teo said accounting, like law, involves structured and routine processes that can be carried out more quickly and efficiently by AI.

“Machines will get smarter, and there are parts of the work they will take over. Accountants must understand that their role is changing, and they need to work with the technology and elevate themselves to continue adding value,” he said.

This will also require companies to shift their mindset – from viewing accountants as a cost centre to recognising them as value-creators who can drive growth and better decisions.

“Companies need to redesign jobs and restructure how work is done so that accountants can contribute more effectively,” Mr Teo said.

Over time, these changes are expected to take the accounting profession to a new level, with more time spent on informed decision-making and less on routine work.

“It’s a good thing,” he said.