In recent years, the accounting industry has been in the forefront of embracing technological shift. The Accounting Entity (AE) survey, an annual report released by the Accounting and Regulatory Authority (ACRA) has shown that up to 85% of Accounting firms in Singapore have adopted one or more technology solution in the past year, a jump of 3% from the preceding period. Particularly, a 5% increase on firms adopting AI adoption can be seen.
In the coming years, this number is expected to increase with several government grants and schemes that push for more focus on the use of AI. In YA 2027 and 2027, the list of qualifying activities that qualify businesses for up to 400% tax deductions on up to SGD 50,0000 of expenditure per year, have been updated to include AI adoption, under the Enterprise Innovation Scheme (EIS).
The Institute of Singapore Chartered Accountants (ISCA) in partnership with the Infocomm Media Authority (IMDA) has recently launched AIxAccountancy, a national AI training initiative for industry practitioners. It covers 30 hours of self-administered courses backed with practical assessments and real-world AI agents as requirements for training completion.
What are AI Agents?
The age of generative Artificial Intelligence (AI) has paved the way for a new phase of automation, the agentic AI. While generative AI responds to a set of prompts, AI agents go a step further. Within defined boundaries and guided by set rules, AI agents work towards a goal, autonomously decide on the next steps and interact with authorised systems, data and knowledge resources to accomplish the set goals.
In Accounting this could mean agents taking on mundane and repetitive tasks, further allowing time and capability for accounting professionals to focus on the more complex side of the job in areas such as audit opinions, accounting estimates and complicated tax decisions.
What does this mean for your Business?
If you are engaged with an accounting or advisory firm, you can anticipate faster turnaround times on quality reports and more automated workflows.
Further, the opportunity extends beyond the services you can receive from your service provider. Your organisation can also explore how AI agents can be integrated into your own finance and operational processes. AI agents can provide you with a stronger visibility over financial information that creates a more responsive process between you and your advisors that then reduce bottlenecks and back-and-forth communication during peak periods and reporting deadlines.
Governance and Responsible AI Use
The Institute of Singapore Chartered Accountants has recently released a framework for the responsible use of AI in Accountancy. Parallel to such, the IMDA has also published a comprehensive governance guidelines on the use of Agentic AI that both supplements an accounting firm’s internal AI policy.
These resources serve as implementation guide for accounting professionals on responsibly adopting AI, with particular emphasis on protecting client data, maintaining appropriate human oversight, managing AI-related risks and ensuring accountability for AI-assisted work.
As Agentic AI will soon be at the core of workflows and business operations, strong governance in place is imperative. For Accounting firms, this means ensuring the agents are trained in clear defined boundaries, governed by appropriate controls, and all works are still reviewed with strict professional judgment remaining firm in place.
How can Businesses Navigate the Agentic Era of AI
For businesses, navigating this next stage will mean ensuring that financial data is reliable, internal controls remain robust and AI is adopted with appropriate governance and human oversight. As routine processes become increasingly automated, the value of accounting professionals will shift further towards interpreting results, challenging assumptions and helping businesses make informed decisions.
For Accounting firms, embracing AI agents mean improving on the outcomes delivered and earning quality time and capabilities for tasks that require professional judgment, industry expertise, human interpretation. This is tied up to the promise of delivering a more responsive, insightful and value-adding solutions that adapt to changing business needs.
Reach out to our team to learn how we commit to providing bespoke client services whilst ensuring we remain relevant to the changes in the profession.