As AI adoption rises, job fears grow across US

Smarter agents could lead to offices without young people, but also create opportunities

- Bhagyashree Garekar US Bureau Chief

It did not take long for the myth to crumble.

A year ago, artificial intelligence (AI) was dismissed as too dimwitted for the front lines of finance. But Mr David Yin, a partner at Informed Ventures, has now backed an outfit that runs bookkeeping, tax compliance and financial analysis for startups and small firms, powered by both generative agents and licensed professionals.

Two young coders helm the startup that provides end-to-end accounting at a fraction of the fees traditional firms charge for transaction sorting, bank reconciliation, book closing and analysis.

“As an investor, I have been shocked at how quickly companies are progressing in underlying technology,” said Mr Yin, a 35-year-old Singaporean who has worked in the San Francisco Bay Area for around five years.

“A year ago, for instance, it was said that AI was too dumb to do finance, but over the last six months, people have started using AI assistants to do just that. I’m not saying they are perfect, but they have started becoming very powerful.”

Mr Yin’s Menlo Park, California-based venture capital fund has poured around US$300 million (S$384 million) into early healthcare and fintech bets.

The accounting startup employs certified public accountants to vet the bots’ output, keeping the essential human oversight on taxes and audits.

Still, Mr Yin spots the chill. Firms are not hiring - they are pruning.

“A lot of us underestimate how powerful AI is and how good the models could become in the next three to five years. Most of the companies I’m talking to are trying not to hire people. They are trying to cut people, if anything.”

A ripple of unease is spreading across the US economy as the prospect of AI-related job losses conjures up dark scenarios like offices without young people because entry-level jobs are no longer open. And, maybe, even mass unemployment if the trend accelerates.