Building on a solid foundation, financial reporting functions will accelerate the adoption of both AI and GenAI.
AI Adoption
Finding 1
Top priorities for financial leaders are GenAI, cloud migration, D&A, and robotic process automation.
Benefits and hype
Finding 2
47% of financial reporting leaders agree GenAI will deliver on the hype, while 38% disagree.
Financial reporting leaders believe AI will bring many benefits:
51%
Increased efficiency and reduced staff burden
50%
more accurate and reliable data
48%
better ability to find outliers
27%
a solution to staff shortages
25%
cost savings
Audit Quality
Finding 3
of financial reporting leaders believe external auditors are ahead of financial reporting functions on using AI and expect AI to enhance audit quality.
72%
Financial reporting leaders expect:
AI Concerns
Finding 4
Financial reporting leaders have different concerns for AI and GenAI.
AI concerns center on the transparency of models and data privacy while GenAI concerns are focused on accuracy, data management and bias.
The main barriers to AI adoption are concerns about reliance on algorithms, the pace of changing regulatory guidelines and data quality.
Evaluating use
Finding 5
When evaluating AI in financial reporting:
of financial reporting leaders want external auditors to evaluate their use of AI.
65%
When considering the entire company’s use of AI:
of financial reporting leaders expect AI to attract more talent to financial reporting roles
AI and Talent
FINDING 6
52%
of financial reporting leaders do not expect AI to shrink teams
55%
believe AI will grow their team’s size to enhance value
21%
6-to-1 believe AI will positively affect diversity, equity, and inclusion
While AI anxiety among the workforce is commonly discussed, financial reporting leaders expect a boon to talent and diversity.
65%
29%
36%
conducting third-party attestation
detailed reviews of control environments
51%
of financial reporting leaders believe third-party attestations will be valuable
When considering the entire company’s use of AI:
65%
of financial reporting leaders report their functions are using AI
46%
Auditors to use AI to conduct data analysis
43%
GenAI to be used to find risks/anomalies
42%
GenAI to drive more continuous auditing throughout the year
48%
Auditors to use AI for asking the right questions and willing to challenge
have already either piloted or deployed GenAI solutions in some fashion
48%
of leaders expect the function
to be transformed
18%
of leaders report they expect AI to be used extensively in 3 years
71%
of leaders whose companies are already using AI report they expect to roll out AI solutions more broadly over just the next two years
70%
Building on a solid foundation, financial reporting functions will accelerate the adoption of both AI and GenAI.
AI Adoption
Finding 1
Top priorities for financial leaders are GenAI, cloud migration, D&A, and robotic process automation.
of financial reporting leaders report their functions are using AI
65%
have already either piloted or deployed GenAI solutions in some fashion
48%
of leaders whose companies are already using AI report they expect to roll out AI solutions more broadly over just the next two years
70%
of leaders report they expect AI to be used extensively in 3 years
71%
of leaders expect the function to be transformed
18%
Benefits and hype
Finding 2
47% of financial reporting leaders agree GenAI will deliver on the hype, while 38% disagree.
Financial reporting leaders believe AI will bring many benefits:
51%
Increased efficiency and reduced staff burden
50%
more accurate and reliable data
48%
better ability to find outliers
27%
a solution to staff shortages
25%
cost savings
Audit Quality
Finding 3
of financial reporting leaders believe external auditors are ahead of financial reporting functions on using AI and expect AI to enhance audit quality.
72%
Financial reporting leaders expect:
48%
Auditors to use AI for asking the right questions and willing to challenge
46%
Auditors to use AI to conduct data analysis
43%
GenAI to be used to find risks/anomalies
42%
GenAI to drive more continuous auditing throughout the year
AI concerns center on the transparency of models and data privacy while GenAI concerns are focused on accuracy, data management and bias.
The main barriers to AI adoption are concerns about reliance on algorithms, the pace of changing regulatory guidelines and data quality.
AI Concerns
Finding 4
Financial reporting leaders have different concerns for AI and GenAI.
Evaluating use
Finding 5
When evaluating AI in financial reporting:
When considering the entire company’s use of AI:
65%
of financial reporting leaders want external auditors to evaluate their use of AI.
of financial reporting leaders believe third-party attestations will be valuable
51%
65%
29%
conducting third-party attestation
36%
detailed reviews of control environments
6-to-1 believe AI will positively affect diversity, equity, and inclusion
of financial reporting leaders expect AI to attract more talent to financial reporting roles
52%
of financial reporting leaders do not expect AI to shrink teams
55%
believe AI will grow their team’s size to enhance value
21%
While AI anxiety among the workforce is commonly discussed, financial reporting leaders expect a boon to talent and diversity.
AI and Talent
FINDING 6