AI in financial reporting: From roadmap to revolution
Our new report details AI’s widespread utilization, expanded funding, and leading practices from companies at the forefront.
Estimated read time: 3-4 minutes
Artificial intelligence (AI) has transformed financial reporting and auditing over the last few years, with more than 7 in 10 companies using it in some form today, per KPMG research.
And based on our latest report, that trend is fast becoming a full-on revolution: All of the 300 US companies in our new survey are either already using AI in their financial reporting or plan to deploy it within the next three years.
That shift from roadmap to reality has major implications for finance teams and their auditors—and it brings plenty of opportunities as well. As AI increasingly becomes a core capability for many companies, finance leaders are actively planning to expand its utilization in areas like data automation and generative AI (GenAI), backed by significant new funding allocations. They’re also bullish on the related return on investment (ROI), which many companies are already seeing from improved data accuracy, more valuable and rapid insights, increased employee productivity, streamlined audits, and more.
Put simply, AI and financial reporting continue to be a power coupling. It’s a theme that runs throughout our new report, which captures insights, learnings, and leading practices from finance leaders at 300 US companies. Here’s a look at some of the highlights.
The big-picture trends
Above all, our new survey on AI in financial reporting and accounting reveals that the vast majority of companies have now moved from ideation to execution. And while last year’s survey found that 18 percent did not plan to use AI, the number of those on the sidelines evaporated down to 0 this year.
The level of AI implementation and sophistication is rapidly advancing as well. Leading companies have moved AI finance initiatives from proof-of-concept pilots to full-scale rollouts, tapping into new operating capabilities and competitive advantages while maintaining strong governance. In fact, based on an AI maturity framework, 33 percent of the US companies in our survey this year rated as AI finance leaders—with another 39 percent ranking as solid implementers.
Two other overall trends of note:
25%
The AI leaders in our survey plan to increase AI budgets by 25 percent next year and 28 percent over three years. And all other companies in our survey—regardless of their AI maturity level—plan at least 10 percent-plus funding increases for AI next year and at least 20 percent-plus over three years.
46%
Just 46 percent of companies said they were using or piloting GenAI, which was slightly down from last year’s report (48 percent). Concerns around cybersecurity, regulatory activity, and data utilization have slowed progress. But excitement and intent for GenAI in finance remain very strong: 97 percent of survey respondents said they plan to be using or piloting GenAI within the next three years.
Learning from the leaders
With one-third of the companies in our survey identified as strong leaders in AI for financial reporting—using AI with ever-increasing scale and sophistication—our new report offers an expansive window into highly effective approaches.
One big example is how companies can best navigate the many barriers to AI implementation and adoption. Because AI and GenAI don’t fit neatly into long-standing technology use and governance policies, barriers like security, legal, and privacy challenges can slow progress for many companies.
But, as we found in our survey, the AI leaders surpassed these barriers with highly effective steps that included:
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Crucially, leaders are better able to clear the hurdles because they lay the groundwork for using AI in reporting—they are AI-ready from the start. The leaders in our survey ranked significantly ahead of other companies on these top eight indicators of AI readiness:
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Don’t forget the auditors
For AI in financial reporting to be truly impactful and sustainable, independent auditors will need to continue to enhance their own AI understanding and capabilities as well. Indeed, 83 percent of the finance leaders in our survey believe it is important for auditors to use AI in their own processes—a big increase from the 63 percent who cited this in last year’s survey.
Respondents said they will be relying on their external auditors to thoroughly evaluate their use of AI through techniques like detailed reviews of their control environment and AI governance maturity assessments. And to unlock GenAI, financial reporting leaders expect their auditors to speed up their timetables for GenAI adoption.
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