TAKEAWAYS
“Brace! Brace!” We often hear this in an inflight safety video. Metaphorically, this phrase aptly applies to today’s accountancy professionals as they brace themselves for the extensive impact of artificial intelligence (AI). From task automation and data analyses to Google searches and online purchase recommendations, AI has permeated our work and personal lives. Many vocations have been disrupted by AI, and the accountancy profession is no exception.
As Head of Assurance at Ernst & Young LLP in Singapore, Lee Wei Hock has a front-row seat observing how AI is weaving itself into every aspect of the accountancy profession. He has witnessed firsthand the adoption of AI in areas such as risk assessments, transaction scoring (extensive data analyses of voluminous transactions to identify anomalies for targeted investigations), data and information extraction from jargonistic legal contracts, and valuation reports, etc. He expounds that AI is increasingly being leveraged to perform manual and repetitive tasks. This frees up accountancy professionals for higher-value tasks which require more human judgement, interpretation and analyses. This phenomenon is not unique to Singapore. As the world gravitates towards a more efficient AI-driven global business environment, it is imperative that the accountancy profession in Singapore keeps pace with the rapid developments in AI technology, to maintain its relevance to the nation’s economy.
However, the international study titled “AI and the Future of the Global Chartered Accountancy Profession” (AI study) reveals an interesting finding. The research was conducted by Chartered Accountants Worldwide, with participation from 13 professional accountancy organisations, including the Institute of Singapore Chartered Accountants.
According to the research report released in April 2025, about 54% of the accountancy professionals surveyed in Singapore feel that the accountancy profession is not moving fast enough to adopt AI technology. Lee attributes this resistance to change by organisations to a couple of reasons.
1) Lack of understanding
Firstly, the organisations do not have sufficient understanding of the AI technologies available in the market, and how some of these technologies can benefit them in their businesses and operations. Hence, they often adopt a “wait-and-see” approach.
2) Costs
Secondly, the organisations are concerned about the costs required to implement an AI strategy. In the current uncertain global economic climate, organisations tend to be more conservative in their spending. They will focus on the bread-and-butter issue of business survival. Investing in AI is a distant second.
For organisations embarking on the AI journey, what does it take for a successful rollout of an AI strategy? Lee advocates a few critical success factors:
1) Commitment
At the outset, organisations must demonstrate an unwavering commitment from their leaders towards the AI strategy. The leaders have to walk the talk and clearly articulate their AI vision to the rest of the employees. This will convey a strong message throughout the organisations that AI technologies would be key to their overall competitiveness and long-term success.
2) Leadership
Also, the leaders must take the lead to encourage innovation so that employees feel empowered to think out of the box in their work, instead of sticking to the “same old, same old” way of doing things. Leaders must accept that failures are part and parcel of experimentation, and it is more important to learn from those failures to avoid the same mistakes. All these will contribute to the development of a workforce that will embrace AI in their work.
3) Resources
In addition, AI implementation will require investments, and this is where resource allocation becomes vital. Organisations have to ensure that the essential technologies, infrastructure and talent are present to support and progress the strategy. This calls for a robust planning and budgeting process to be in place.
Accountancy professionals in Singapore are keen to adopt AI in their work. Based on the AI study, 83% of accountancy professionals surveyed in Singapore are willing to use AI technologies if given the opportunity. Having said that, 51% feel that insufficient skills and training is the biggest barrier to the adoption of AI by the accountancy profession. This indicates an apparent skills gap that needs to be closed.
Given the diversity in the accountancy profession, Lee opines that a concerted effort by the entire accountancy ecosystem will be needed to level up AI capabilities among accountancy professionals. For example, government funding can be made available to support smaller organisations which are genuinely attempting to incorporate AI as part of their business strategy. For economies of scale, aspiring organisations in the same industry can be clustered to collectively uplift them in common areas where possible.
At the same time, it is crucial to ensure that future accountants are well-versed in AI. Going forward, this means curating fit-for-purpose modules on AI to better equip accountancy undergraduates with the right skill sets before they enter the workforce. Collaborations between Institutes of Higher Learning, professional accountancy bodies and firms, business associations and organisations at the forefront of AI technologies, will be instrumental to achieving this objective.
AI is not looming in the horizon. It is already here – and here for good. Although change is painful, the consequences of not changing could be catastrophic for the accountancy profession. As accountancy professionals, we will do well to prepare ourselves to brace for the impact of AI while there is still time.
© 2024 Institute of Singapore Chartered Accountants
