AI in financial reporting and audit: Navigating the new era
AI is revolutionizing financial reporting and auditing, with expectations for widespread adoption and enhanced capabilities in risk management, anomaly detection, and decision-making within three years. Companies seek auditors to lead this transformation responsibly.
(Generated with the help of GPT-4)
| Quick Facts | |
|---|---|
| Report location: | source |
| Language: | English |
| Publisher: | KPMG International |
| Authors: | Sebastian St?ckle, Thomas Mackenzie, Larry Bradley |
| Geographic focus: | North America, Europe, Aspac |
Methods
The research method involved surveying 1,800 financial reporting executives and board members across ten countries and six industries, focusing on their perceptions of AI adoption and its impact on financial reporting and auditing.
(Generated with the help of GPT-4)
Key Insights
The report discusses the transformative impact of artificial intelligence (AI) on financial reporting and auditing, highlighting a significant shift from traditional methods to AI-driven processes. A survey of 1,800 financial reporting executives reveals that nearly 75% of companies are currently using AI, with projections indicating that this figure will rise to 99% within three years. The report emphasizes the strategic importance of AI, which now accounts for 10% of IT budgets, and outlines the expectations companies have for their auditors to lead AI integration. Key benefits of AI include improved trend prediction, real-time risk insights, and enhanced data accuracy. However, challenges such as inadequate funding, uncertain ROI, and regulatory compliance remain. The report identifies four traits of AI Leaders: effective risk management frameworks, overcoming adoption barriers, ethical AI practices, and readiness for AI implementation. The findings suggest that the future of financial reporting will be characterized by smarter, more efficient processes, with auditors playing a crucial role in guiding companies through this transition.
(Generated with the help of GPT-4)
Additional Viewpoints
Categories: 2020s_time_horizon | 2024_time_horizon | aspac_geographic_scope | english_publication_language | europe_geographic_scope | north_america_geographic_scope | ai_adoption | anomaly_detection | auditing_transformation | data_analysis | ethical_ai | financial_reporting | governance_frameworks | investment_strategies | predictive_insights | risk_management