Emerging trends in accounting with AI and ESG

The accounting profession is undergoing significant transformation driven by the rise of artificial intelligence (AI) and growing emphasis on environmental, social and governance (ESG) factors. 

AI is streamlining processes from automating routine tasks such as data entry to enhancing predictive analytics and decision-making capabilities. With these, accountants are freed up to focus more on strategic advisory roles and less on mundane tasks.

At the same time, ESG is becoming a pivotal part of financial reporting. Investors and stakeholders are increasingly demanding transparency around a company’s sustainability practices, making ESG reporting a critical aspect of modern accounting. 

This Roundtable talks to a group of senior industry professionals on how the accounting profession is managing the twin developing trends in AI and ESG.

Digital transformation in accounting and finance

BT: Automation and AI have transformed traditional roles within the accounting profession. How are organisations adapting to the digital transformation in accounting?

Cheung Pui Yuen, reputation and risk leader, Deloitte Southeast Asia: Accounting roles have the potential to be augmented by automation and AI. These technologies can track key performance indicators, review supporting documentation, and even generate a report on findings and make relevant recommendations. 

Recent advances in AI, particularly generative AI (Gen AI), can now mimic the human creative process by creating novel data. In accounting and finance, use cases include creating project summaries for key stakeholders, drafting accounting standards interpretations, and even providing scenario analysis to aid in strategic CFO advisory. 

However, the adoption of AI in finance and accounting-related functions is still nascent. Deloitte’s inaugural edition of its State of Generative AI in the Enterprise survey found that companies with only little to some expertise in Gen AI were least likely to adopt the technology in their finance, risk and compliance functions. On the other hand, companies with very high expertise adopted Gen AI relatively uniformly across functions.

Greg Unsworth, digital business and risk services leader, PwC Singapore: There are challenges and opportunities created through AI. There is significant potential to enhance productivity and the effectiveness of finance functions, as well as free up professionals to make higher strategic impact for businesses. The ongoing challenges for organisations include cutting through the hype to identify and adopt meaningful usage of AI for their business; ensuring that AI is deployed responsibly and in a trusted way; and continually upskilling and reskilling teams to optimise the use of the technology. 

Jean Lee, vice-president of business operations, transformation division, CX International, Nice Systems: The introduction of automation and AI has created a ripple effect within the accounting profession, altering the career paths of accountants. As organisations introduce more automation and AI initiatives to simplify routine work, many are taking the opportunity to realign resources, integrate similar roles globally, reduce duplicate functions, and create specific pillars and departments with a focus on digitalisation and transformation of finance functions in both the front and back offices for greater efficiency. As a result, resources are being redeployed from traditional controllership responsibilities into business partnering roles. So human resources and senior management are looking at transferability of skillsets into these adjacent remits accordingly. 

BT: What are the ethical considerations surrounding the use of AI in financial decision-making?  

Mustajab, chief operating officer and head of finance, Bird & Bird ATMD: The adoption of AI in financial decision-making entails potential risks that need to be carefully managed to ensure ethical and responsible use. The key risks are transparency, accountability and bias. These underscore the importance of oversight in AI development and implementation for the financial sector. Transparency risks involve the opaque nature of AI algorithms. This makes it difficult to understand decision-making processes and leads to distrust, regulatory issues and challenges in explaining decisions. The “black box” nature of some of these AI models impedes the ability to identify errors, biases and unethical behaviour. 

Cheung: A key concern is the “black box” nature of AI, as well as the challenge of accountability for the decisions made based on AI-produced results. In addition, a lack of trust is one of the biggest barriers to large-scale adoption and deployment of Gen AI. Namely, trust in the quality and reliability of Gen AI’s output, and trust from workers that Gen AI will make their jobs easier and not replace them.

To address this, organisations should adhere to the principles of transparency – where stakeholders are aware that AI is being used – and explainability – where stakeholders can understand how outcomes and decisions were derived. 

At the crux of the issue is the need to place humans at the centre of AI adoption. Accounting is a very human endeavour: the products of the accounting and finance function are ultimately for human consumption, to facilitate and improve decision-making.

Unsworth: The ethical considerations around AI are important for any organisation to evaluate, particularly regarding financial decision-making. The reliability of AI solutions, including large language models (LLMs) to provide trusted outcomes depends on the reliability, neutrality, scale and depth of data sources available, as well as ensuring that algorithms are operating effectively.  

For any organisation seeking to deploy AI, it is important to ensure effective human oversight, fully evaluate the risks, and design effective controls and governance from the outset of technology deployment. The evolving regulatory landscape will also be an important area to monitor for finance professionals and business leaders alike, to stay abreast of ongoing developments and ensure compliance in what is likely to be an increasingly complex environment. 

BT: How can organisations balance the efficiency gains from automation with the need for human oversight? 

Lee: Efficiency gains from automation is not just about reducing resources in accounting departments. Human oversight and having appropriate governance in place are paramount. They can help to further improve accuracy, assist the organisation to make the right decisions, and course-correct on a timely basis. Appropriate human oversight should not be seen as an additional cost, but rather a critical value-add to augment and provide safeguards for enhanced automation.

Cheung: Human-centricity is not just an end state but also about the journey of getting there – ensuring workers of varying AI literacy are supported in the adoption of these technologies and are not left behind.

Focusing on the journey also gives leaders time to build trust, both in the technology and from workers. This reduces the pressure to show immediate return on investment. Any short-termism will end up counterproductive to enterprise-wide adoption because many of the critical elements for successful deployment. For example, data infrastructure, talent development, AI governance and risk controls, and experimentation need time to develop.

Embracing this human-centred framework will enable the accounting profession to navigate the challenges and opportunities of AI, ensuring a future where technology and human expertise work hand in hand to drive success.

Unsworth: It is important that businesses plan for and utilise technology in a way that is strategically aligned with their organisational objectives, ambitions and core business purpose. There can be a tendency for some organisations to chase the next “flashy” innovation, particularly as the hype develops around recent technology trends such as Gen AI. 

A human-led, technology-enabled approach is essential for long-term success. The opportunities to drive efficiency and improve outcomes using AI are very real, although such initiatives should be overseen by business leaders and finance professionals to ensure that technology is deployed in a way that helps achieve overall business objectives and that related risks of AI adoption are professionally managed.  

The key is to ensure that leaders start with the business strategy and purpose first, and then evaluate where AI and other technologies can help achieve better outcomes. Ultimately, it does come down to the humans being in charge and using technology to help, rather than the other way around.  

Haryane: Striking a balance between automation and human oversight is crucial to ensuring that while machines handle tasks, humans remain responsible for supervision and decision-making.

Automation involves using technology to perform tasks without human intervention, while human oversight ensures systems operate ethically and safely. For instance, AI in hiring can perpetuate biases without human checks, but human workers still manage quality control and complex decisions.

Sustainability and ESG reporting

BT: ESG is growing in importance within the realm of financial reporting. How will the role of accountants evolve as ESG is increasingly embedded into the DNA of organisations?  

Cheung: ESG is changing the game in accounting and auditing. Finance professionals need to move beyond the numbers and dive into how companies operate on ESG fronts. This shift means that businesses will need to do well at analysing ESG factors, and how these factors can intersect with financial performance and risk management. As this becomes more of a norm, I see the role of accountants and auditors evolving into one where they are not just crunching numbers, but helping guide strategic decisions that balance profit with purpose.

Unsworth: ESG is clearly a boardroom issue, and with increasing regulatory and stakeholder expectations, it is important for all organisations to ensure effective, relevant and reliable reporting. While ESG considerations often concern the entire organisation, it is typically the finance team that is asked to take the lead for ESG reporting purposes. This is natural given the experience and capabilities developed by accountants for external financial reporting and management purposes, as these skillsets can be directly applied to address increasing non-financial reporting needs. 

Beyond financial reporting, this represents an opportunity for accountants to broaden their roles, providing greater impact to benefit their organisations and help address a real societal issue for the future. 

Haryane: As ESG becomes deeply embedded in the fabric of organisations, the role of accountants will evolve into one of multidisciplinary expertise, balancing traditional financial stewardship with new responsibilities in sustainability reporting, risk management, strategic planning and ethical oversight. Accountants will be central to ensuring that ESG is not just a compliance exercise, but a driver of long-term value and corporate accountability.

BT: How can finance professionals drive the sustainability agenda in organisations? 

Cheung: Finance professionals are uniquely positioned to drive sustainability efforts, given their comprehensive understanding of an organisation’s data, processes and corporate reporting. The finance department is often deeply embedded within the organisational network and equipped with the necessary professional tools to align ESG priorities with the company’s profitability objectives.

Unsworth: Beyond ESG reporting, there will be opportunities for finance professionals to take on a bigger role in helping to drive broader strategic ESG initiatives for many organisations. One way to do this is by helping to develop integrated ESG reporting platforms for organisations to enhance the reliability, efficiency and effectiveness of reporting. This can be expected to generate more timely reporting, enhance the quality of insights developed and improve the reliability of external reporting. 

Moreover, an integrated ESG reporting platform can significantly aid in the independent assurance process by providing a centralised, transparent and comprehensive repository of all relevant data. This facilitates easier verification and validation of information, thereby increasing stakeholder confidence in the reported data and ensuring compliance with regulatory standards. 

Haryane: Drive the sustainability agenda by integrating ESG principles into financial planning, investment decisions, risk management and reporting. By aligning sustainability with financial goals, promoting transparent reporting and advocating for long-term value creation, finance teams can ensure that organisations not only comply with evolving regulations but also thrive in a future where sustainability is central to business success.

The future of work in finance

BT: What skills will be critical for finance professionals in a post-pandemic world? How can organisations support continuous learning and development for finance professionals?   

Lee: Learnability is one of the top skillsets that accountants must have. Due to shortages in resources who are experienced in new technology, organisations need to recruit and retrain employees who show potential for learning and have adaptive and inventive thinking skills. In addition, given new roles of accountants as business partners, skills in relationship-building, communication and social awareness are top priorities to advance their careers. 

The profiles of team members in accounting, business and finance operations have extended beyond qualified accountants. Your team members now may be data scientists, data strategists, data analysts or visualisation experts. Many tenured managers have to reskill to stay relevant and stay ahead of the curve.

Cheung: Data analytics has emerged as a key skill. The ability to interpret complex datasets and derive actionable insights is crucial in the world of finance. To stay relevant, finance professionals should develop a proficiency in emerging technologies such as machine-learning and AI, which can help to speed up decision-making and innovation. These skills should also be complemented by a keen awareness of cybersecurity risks and AI ethics. 

Another key area is sustainability, driven by changing investor priorities, regulatory pressures and a growing awareness of sustainability issues. 

Beyond technical expertise, finance professionals should develop a global perspective and be able to communicate effectively across cultures. As finance teams take on a more strategic role at the organisational level, finance professionals need to be able to see the big picture and provide insights that shape high-level decision-making.

To foster these skills, organisations should ensure that their approach to learning and development stays relevant. With technology such as AI, they can offer personalised learning paths in place of one-size-fits-all training programmes. They can also plan mentorship programmes and partnerships with educational institutions to keep their people up to date with the latest industry trends. 

Haryane: In a post-pandemic world, finance professionals must develop a diverse set of skills to navigate the evolving landscape effectively. Organisations play a crucial role in supporting continuous learning and development by providing tailored training, access to resources, mentorship opportunities and a culture that values growth. By investing in their finance teams, organisations can enhance resilience, adaptability and strategic decision-making, ultimately driving long-term success.

Unsworth: The skills required for finance professionals will continue to evolve as business needs change, although we already see a pressing need to develop more ESG and digital-related skills within finance teams. There will also be a need to continually enhance leadership, management skills and creativity. This will enable teams to play a larger role in partnering the business and helping to drive organisational strategic priorities. 

In this context, it is essential for organisations to invest in their talent development programmes to ensure that leading finance professionals are able to develop, prosper and further increase their positive impact for the business. 

CPA Australia’s Singapore Presidents on leadership and progress in the accounting profession

How has CPA Australia contributed to advancing Singapore’s accounting profession?

Low Weng Keong, President and Chair of the Board, CPA Australia (2010-2011) 

“CPA Australia’s work over the decades in Singapore has helped to uplift the visibility and standards of the accounting profession here. We continue to draw inspiration from our growing numbers of members and the recognition by various stakeholders – including regulatory authorities – of the importance of having a recognised accounting qualification. In recent decades, we have been pioneers in championing high standards of corporate governance through strategic initiatives such as our sponsorship of the annual Singapore Governance and Transparency Index, a widely followed benchmark that ranks Singapore-listed companies on their governance and transparency practices.”

Loh Hoon Sun, Divisional President (1997-2005)

“Since 1984, CPA Australia was among the first professional bodies in Singapore to require its members to undergo continuing professional development. To help our members meet their structured training requirements, CPA Australia organised a wide range of business, finance and accounting courses, as well as educational talks – probably more than 100 annually over the decades. But we did not stop there, and widened our offerings to include social events for members and their families. This not only helps to build members’ capabilities, but also fosters friendships and professional relationships in our Singapore accounting fraternity.

CPA Australia has signed three mutual recognition agreements with the national accounting body, ISCA, since 2004. This is good for members of both bodies. It’s a win-win arrangement.”

Steven Lim, Divisional President (2006-2008)

“The CPA designation conferred by CPA Australia helps our members gain better recognition from employers. In my view, this is the most valuable contribution to advancing the Singapore accounting profession. Both young and more experienced members have benefited over the years from proactive initiatives by the association to create networking opportunities and quality training programmes to help members succeed.”

Chaly Mah, Divisional President (2008-2010)

“For accountants to successfully navigate today’s fast-paced and transformational changes in the profession, they have to continue to think forward. My advice would be to embrace the changes, continue to learn new things and innovate, and stay nimble. AI and Gen AI will have a transformational and permanent impact on the way we do things today. Accountants should leverage AI and Gen AI to improve productivity and enhance decision-making. Then the profession can continue to stay relevant and be trusted advisers to their stakeholders.”

CPA Australia has supported its members and grown the Singapore profession through deepening the skills of its members. In your view, how has lifelong learning helped accounting and finance professionals stay relevant amid the disruptive changes to the profession?

Soh Yew Hock, Divisional President (2005-2006)

“Accountants’ understanding of sound financial management, risk management and internal control issues have been recognised by employers as critical attributes for organisations. CPA Australia’s extensive education curriculum and its network of resources and experience have added much value to the career advancement of accounting and finance professionals.

I think this bodes well for CPA Australia members as they provide broader avenues for career advancement.”

Deborah Ong, Divisional President (2011-2012)

“Continuous learning is essential for staying relevant in today’s fast-changing and complex business world. Regular training helps accounting professionals upgrade their critical skills in response to greater technology adoption and sustainability shifts in organisations. Ongoing training allows for reflection on career paths. For CPA Australia members, lifelong learning builds on their professional qualification exams and can help them decide between public accounting and corporate roles, or even specialised areas such as internal audit or valuations. These will provide good foundations for leadership roles.”

Themin Suwardy, Divisional President (2013-2014)

“The accounting profession has been an early believer in lifelong learning, requiring all members of professional bodies to commit to Continuing Professional Development (CPD). This has allowed accounting and finance professionals to stay on top of the developments in the industry, be it analytics, digital transformation, sustainability or climate reporting, as well as other developing areas. Such commitment to ongoing learning is important because accounting plays a crucial part in ensuring the integrity of financial and sustainability reporting, which contribute to the trust and transparency that are fundamental to economic stability and corporate responsibility.”

Philip Yuen, Divisional President (2015-2016)

“Accounting professionals are trained in the “language of business” and have specialised skills that are transferable across industries. Beyond financials, they are trusted advisers, providing critical insights that facilitate sound business decisions. In today’s volatile, uncertain, complex and ambiguous world, agility, adaptability and a lifelong learning mindset are important to drive value and be successful in any career they choose.”

How do you see the accounting profession evolving to be ready for the future of work?

Yeoh Oon Jin, Divisional President (2017-2018)

“The accounting profession is evolving for the future of work by harnessing technology to transform data into insights. I think CPA Australia can play a pivotal role in equipping professionals with the skills needed to navigate these fast-paced changes.”

Chng Lay Chew, Divisional President (2019-2020)

“Sustainability and ethics are now at the forefront of accounting practices, reflecting the profession’s commitment to a responsible and resilient future. In this regard, CPA Australia has useful resources to guide its members to integrate ESG principles and ethics into their work and prepare them as responsible leaders in business.”

Max Loh, Divisional President (2021-2022)

“Digitalisation and AI are reshaping our profession in transformational ways. As custodians of data, accounting professionals are well-placed to leverage their analytical and problem-solving skills, portraying themselves as key strategic partners to drive innovation, productivity and sustainability in organisations.”