AI poised to reshape accounting


SINGAPORE: Artificial intelligence (AI) is transforming accounting work but it has not led to broad-based job cuts, particularly among junior hires, says the Institute of Singapore Chartered Accountants (ISCA) as it sets aside S$1mil in funding after Budget 2026 to strengthen AI skills.

AI 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% employment for those from Nanyang Technological University.

Meanwhile, enrolments in accounting programmes have risen, and ISCA’s student membership grew 50% in 2025. Fewer than 1% of members sought unemployment support. 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,” 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 S$1mil to launch an AI Fluency Programme in partnership with the Infocomm Media Development Authority, following Budget 2026’s strong emphasis on AI adoption. — The Straits Times/ANN

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