As AI does more of the routine work of accounting and finance functions, this is a strategic opportunity to develop the trusted business leadership of professional accountants, and from the start of their careers, writes Professor Michelle Carr of UCC. In the ongoing conversations around artificial intelligence (AI), few topics are as paradoxical as the role of AI in accounting and finance. Despite being one of the most vital functions in any organisation, finance is often seen as particularly vulnerable to disruption by AI. This narrative persists, even as CEOs and boards continue to elevate their expectations for the finance function. Today’s organisations are demanding much more from their finance teams than just periodic reporting. They look to finance to provide forward-looking insights, scenario modelling, risk intelligence, and a clear view of organisational resilience. The growing importance of sustainability reporting, geopolitical volatility, and the need for real-time decision-making only reinforce the strategic significance of high-quality financial leadership. However, a structural tension exists. Many finance teams remain tied to the operational workload that has historically defined the accountancy profession: reconciliations, compliance cycles, manual data preparation, and regulatory documentation. While essential, these activities consume valuable capacity that could otherwise be directed toward strategic analysis and value creation. This tension is something I have experienced firsthand. While teaching a group of Chartered Accountants Ireland students preparing for their FAE exams – bright and dedicated future professionals – we were working through models on international pricing decisions, part of the Advanced Performance Management course. In the middle of the session, one student trainee asked me: “Will I ever actually get to use these things? My work is nothing like this.” His question was heartfelt, and it struck a chord. I realised that we train some of the brightest and best for years, yet so often, at least in the initial years of their careers, they are channelled into working at repetitive tasks that fail to utilise their full potential. Surely, there must be a better way. And there is. AI represents that opportunity. Rather than displacing or replacing accounting and finance professionals, AI has the potential to unlock the strategic contributions organisations have long sought from them. Intelligent automation can streamline routine processes, real-time analytics can uncover emerging risks and opportunities, and AI-powered financial systems can significantly accelerate decision-making cycles. The result is not a diminished finance function, but a more trusted and elevated one. When AI handles mechanical tasks, finance professionals can focus on work that truly drives organisational value: guiding strategic decisions with trusted insights; improving capital allocation and financial stewardship; strengthening risk management and organisational resilience; ensuring ESG integrity and long-term sustainability; advising on value creation through responsible leadership; connecting operations, sustainability, and financial impact. These capabilities are at the heart of organisational competitiveness and rely on human reasoning, ethical judgement, and contextual understanding – qualities that cannot be automated. It is these qualities that build trust, trust that accounting professionals will not only safeguard financial integrity but will also lead organisations towards their strategic goals with foresight, responsibility, and a focus on long-term value. For leaders, the message is clear: AI is not a cost-cutting tool, it is a capability-building tool. When implemented thoughtfully, AI enables finance teams to deliver the trusted insight, foresight, and governance that modern organisations require. The future of accounting should not be viewed through the lens of workforce reduction, but as an opportunity for strategic enablement and trusted leadership. AI equips accounting and finance professionals with the tools and bandwidth to step into more influential roles, which align with the priorities of executives and boards and uphold the core values of trust and integrity. At University College Cork, akin to Chartered Accountants Ireland, we view AI not as a threat to the accountancy profession, but as a powerful catalyst for its evolution. The redesign of our BSc Accounting programme and the accounting and finance modules across the business school reflect a deliberate shift away from training students for routine compliance work and towards preparing them for strategic, judgement-intensive roles in AI-enabled finance functions. When This shift is delivered through four interconnected initiatives: Preserving technical excellence while reducing the dominance of mechanistic content increasingly handled by technology. Cultivating a broader perspective and adaptability by exposing students to different institutional, regulatory, and cultural contexts. Embedding AI, digital technologies, and sustainability as foundational elements of modern financial judgement. Fostering integrative, ethical, and strategic thinking through modules focused on ambiguity, trade-offs, and long-term value creation. As machines take on and cover off more of the work of calculation and reporting, accounting education and professional development must focus on human insight, responsibility, and strategic judgement. This is an opportunity to recognise AI not as a threat to the accountancy profession, but as a catalyst for its renewal and ongoing relevance, built on a foundation of trusted business leadership. Dr Michelle Carr is Professor of Accounting, and Head of the Department of Accounting and Finance at Cork University Business School, University College Cork

In Irish news, the first Fiscal Monitor for 2026 has been released and Revenue has published updated guidance on the application of Relevant Contracts Tax to mixed contracts. In UK news this week, we review the progress of the current Finance Bill through the parliamentary process, and there’s still time to share your thoughts on tax supports for entrepreneurs. In International news, Accountancy Europe reports on the key tax risks for SMEs.  Ireland 1. The Department of Finance and the Department of Public Expenditure and Reform have published the Fiscal Monitor for January 2026 which confirms an Exchequer surplus of €0.1 billion in the month. 2. Revenue has issued updated guidance clarifying how Relevant Contracts Tax applies to mixed contracts. UK 3. The current Finance Bill has reached report stage in the House of Commons. 4. There’s still time to share your thoughts on tax supports for entrepreneurs. International 5. Read the recent Accountancy Europe report on identifying and managing key tax risks for SMEs. Keep up to date with all the latest Irish, UK, and international tax developments through Chartered Accountants Ireland’s Tax Newsletter. Subscribe to the Tax News by updating your preferences in MyAccount. You can also read this week’s Cross-border developments and trading corner here.  

The Financial Reporting Council (FRC) has updated its Guidance on the Strategic Report. The Guidance, which was first published in 2014, is designed to help UK entities meet their reporting requirements to prepare a Strategic Report under the Companies Act 2006. As well as companies, the Guidance is also relevant to other entities such as limited liability partnerships and qualifying partnerships that are required to prepare a strategic report. The updated guidance supersedes the previous edition of the guidance issued in June 2022 and incorporates the following; Various changes in the corporate reporting framework including the Corporate Governance Code 2024, the Companies (Accounts and Reports) (Amendment and Transitional Provision) Regulations 2024, the Companies Directors’ Report (Payment Reporting) Regulations 2025 and other developments in sustainability-related and wider corporate reporting practice Changes which emphasise the status of the guidance. Mandatory requirements are clearly indicated and distinguished from good practice guidance in the updated document Updates which emphasise the purpose and objectives of reporting and communication principles Structural improvements to the Guidance which should make it easier to navigate and more accessible. Sections are now ordered by general principle instead of by entity type The scoping tables are now published as a separate document  

Revenue has updated its stamp duty guidance on transfers of land to young trained farmers to reflect the Finance Act 2025 extension of this relief. The relief has been extended by a further four years making it available for instruments executed up to and including 31 December 2029. The guidance has also been updated to provide instructions for claiming a stamp duty repayment under section 81AA Stamp Duty Consolidation Act 1999 through Revenue’s eRepayments system.

Revenue has published a further warning of fraudulent emails, SMS (text messages) and phone calls seeking personal information from taxpayers. Revenue has updated its website to highlight recent fraudulent emails claiming that taxpayers are ‘due an audit’ and providing a link instructing them to schedule the audit by a specified date. Taxpayers who have provided Revenue account details in response to an email, SMS or phone call are advised to reset their password immediately. Taxpayers are advised to contact their bank or credit card provider if they have provided bank or card details.

The guidance relating to PAYE monthly and annual estimates has been archived as it relates to payroll reporting obligations applicable up to and including 31 December 2018.

Revenue has published updated guidance on the automatic exchange of information between tax administrations to provide details of the expansion of DAC3 and other further clarifications. The updates to the guidance are as follows: Paragraph 3.5.1 has been updated to reflect the expansion of DAC3 from 1 January 2026 to include certain cross-border tax rulings involving natural persons.     The paragraph also outlines that from 1 January 2026, DAC8 requires advance cross‑border tax rulings issued to individuals to be exchanged with EU tax authorities. This applies when the ruling concerns the individual’s tax residency in the Member State issuing the ruling, or when the value of the transaction or series of transactions exceeds €1,500,000 (or the equivalent in another currency) and that amount is referenced in the ruling. Paragraph 3.2.2 has been updated to remove reference to DAC2/CRS exchanges taking place under the Ireland - Hong Kong DTA as these exchanges are now made under The Convention. Paragraph 4.1 has also been deleted to reflect this change. Paragraph 3.2.2 has been revised to clarify the restrictions on the use of data exchanged under the Convention. Details regarding the exchange of information on crypto asset transactions under the Crypto-Asset Reporting Framework (CARF) and DAC8 have been included in paragraph 3.9. Appendix 1 has been updated to include new exchange relationships.  As a consequence of these changes, the guidance on returns in relation to foreign accounts has been updated accordingly.

The latest Finance Bill, which is officially titled Finance (No. 2) Bill 2024-26, continues its progress through the parliamentary process. The Bill will eventually become Finance Act 2026. Last week the Bill completed Committee Stage on 6 February and is now at Report Stage, the final stage where amendments can be made. Report Stage, the date for which has not yet been set, will be followed by Third Reading in the House of Commons before the Bill moves on to the House of Lords. At Public Bill Committee stage, a range of amendments were made to the Bill details of which are set out in a policy paper published last month. The amendments to the Bill to increase the £1 million allowance for agricultural property relief and business property relief to £2.5 million were previously debated and agreed during the Committee of the Whole House debates which took place on 12 and 13 January 2026.

Revenue has updated its accelerated wear and tear allowances guidance on gas vehicles and refuelling equipment and energy efficient equipment to reflect an extension of these reliefs to 31 December 2030, as provided for by Finance Act 2025.

Revenue has updated its capital acquisitions tax exemptions guidance to reflect the update provided by Finance Act 2025 in relation to retirement benefits. The update confirms that the meaning of a ‘retirement fund’ extends to any remaining balance in an Automatic Enrolment account where the participant dies after reaching pensionable age.

Revenue has published its Q4 2025 service delivery report, outlining key data and insights on real‑time reporting, taxpayers’ online access to information, and the direct engagements initiated by taxpayers during the quarter. The report outlines that 464,085 tax returns were filed via ROS and 2,382,427 LPT transactions were processed in the quarter which is reflective of the relevant deadlines in the quarter. A total of €3.46 billion was repaid by Revenue. In terms of online inquiries, the report confirms that 604,301 MyEnquiries were received by Revenue in the last quarter of 2025 and an estimated response time was applied in 114,909 cases. The report outlines that the estimated response time given was met or exceeded in 64 percent of the responses. A total of 467,162 calls had the ‘hold my place in queue’ service available and the percentage of relevant callers who availed of this service had increased to 19.5 percent from the previous quarter which had been at 14.75 percent.

Revenue has updated its relevant contracts tax (RCT) guidance on relevant operations providing  clarification that, in the case of mixed contracts, it is only the construction services which are within the scope of RCT. Where a mixed contract involves a single consideration, the principal must apportion the consideration to identify the amount relating to the construction services. Examples of mixed contracts are outlined in the guidance, which include the following: A contract for construction services and the supply of land, a contract to supply design and build services, and a contract for the supply and installation of systems in a building or structure. The guidance outlines that in all cases, it is only the construction services which are subject to RCT and VAT reverse charge. In the case of the examples above, the supply of land, design services and the supply of materials are not subject to RCT. The guidance on who is a principal contractor has also been updated to reflect the Finance Act 2025 changes which amended references to housing legislation contained in section 530A TCA1997. The Finance Act 2025 changes did not alter the range of principals who are required to operate RCT.