AI is reshaping financial reporting and auditing, empowering businesses to create smarter, more connected information flows. This enhanced connectivity strengthens risk identification and mitigation, while also improving the accuracy of financial oversight.
A comprehensive study, AI in Financial Reporting and Audit: Navigating the New Era, involving senior executives across 1,800 companies globally, underscores the growing role of artificial intelligence in auditing and financial oversight.
We are currently at a turning point as we move toward a new era powered by artificial intelligence in accounting and auditing redefining financial oversight for all stakeholders, whether by strengthening financial controls, optimising operations with outsourced accounting, or improving oversight through advanced bookkeeping and tax preparations.
The Rising Impact of Artificial Intelligence in Auditing
AI is much more than a fleeting trend, it’s a permanent fixture that’s reshaping financial reporting and auditing from the ground up. Currently, nearly 72% of companies are already piloting or using Artificial Intelligence in financial reporting and within the next 3 years, nearly all (99%) will be employing it.
Businesses are turning to Audit Artificial Intelligence to enable greater accuracy, real-time insight, and more data-informed decision-making. This transformation lets financial teams move away from manual routines and focus instead on assessing key judgments, mitigating risks, and strengthening financial controls.
This growing reliance on artificial intelligence in accounting and auditing signals a dramatic shift from the traditional digital age toward a new era powered by advanced technologies, where financial oversight is smarter, more adaptable, and more trustworthy.
AI’s growing role isn’t limited to a few companies, it’s spreading across sectors and jurisdictions. Large enterprises are already at the forefront, nearly 40% of companies with over $10 billion in revenue are classified as “Leaders” in their use of AI for financial oversight, but businesses of all sizes and maturity are following suit. This transformation highlights the growing recognition that Audit Artificial Intelligence drives greater accuracy, efficiency, and financial control.
How Auditors Are Leading the Transformation
Auditors are at the center of this transformation. Companies expect their auditors to lead the way in adopting and utilizing artificial intelligence in accounting and auditing. According to a KPMG study, 64% of companies believe their auditors should perform a more in-depth review of controls related to their use of AI in financial reporting, while 53% say their auditors should carry out an AI governance maturity assessment.
Furthermore, companies want their auditors to leverage AI in auditing in order to:
- Improve the efficiency and accuracy of audits (with two-thirds expecting this).
- Develop more proactive, continuous, and predictive processes.
- Gather additional data and uncover previously hidden patterns and anomalies.
- Provide greater assurance over controls related to financial reporting with AI.
- Support and guide their transformation to a responsible and trustworthy use of the technology.
The Top Benefits of Artificial Intelligence in Auditing
One of the greatest advantages companies gain by employing artificial intelligence in auditing is the ability to drive smarter, more accurate, and forward-thinking financial oversight.
- The ability to predict financial trends at 65%.
- Real-time insight into financial risks at 60%.
- Better data-enabled decision-making at 57%.
- Increased data accuracy at 57%.
Additionally, companies are experiencing greater productivity, improved training for their financial teams, and more robust financial controls freeing up resources for their people to focus on higher-value tasks and strengthening their overall financial oversight.
This reflects the growing role of Artificial Intelligence Audit in delivering greater confidence and assurance in financial processes.
Overcoming Barriers to Artificial Intelligence in Auditing
While companies face barriers ranging from data security (47%) to cybersecurity (45%) and data management is 40% the Leaders in adopting artificial intelligence in auditing show us how these can be successfully overcome:
- Implementing strong controls, framework, and oversight mechanisms.
- Providing training to financial and audit teams.
- Aligning their data and enterprise architecture to enable smooth integration.
- Maintaining ethical and responsible use of AI, supported by clear oversight, fairness, and strong data controls.
- Establishing a strong data foundation and standardising workflows to enable scaling.
- Collaborative oversight by regulators, stakeholders, and internal committees.
- Staying vigilant to evolving regulations and industry standards (such as the EU’s Artificial Intelligence Act).
The Rise of Generative Artificial Intelligence in Auditing
Generative Artificial Intelligence (genAI) is adding a powerful new dimension to financial oversight.
While traditional AI focuses on pattern recognition and data anomalies, genAI brings additional capabilities:
- An ability to produce context-specific explanations, reports, and tailored analyses.
- Supporting the faster delivery of financial information while strengthening operational efficiency.
- Enhanced ability to identify controls weaknesses and unusual transactions.
- The power to aid auditors in focusing their judgments and expertise on higher-risk or complex issues adding greater value to financial stakeholders.
This growing role for Audit Artificial Intelligence reflects a significant transformation in financial oversight, one that helps auditors provide greater assurance, foster trust, and enable more insightful decision-making for stakeholders.
The Road Ahead: Embracing Artificial Intelligence in Auditing
Financial reporting and audit are undergoing a transformation powered by AI and there’s no turning back. Businesses and auditors alike are following a clear path toward greater maturity in their use of artificial intelligence in auditing.
Key steps on this path include:
- Implementing strong governance and controls.
- Developing a clear framework for responsible AI usage.
- Providing training for financial and audit teams.
- Aligning enterprise data and processes to enable smooth and trustworthy implementation.
- Supporting innovation while honoring fairness, explainability, and data safety.
This transformation signals a dramatic opportunity for companies and auditors to collaborate and elevate financial oversight adding greater depth, robustness, and credibility to financial reports and audits in a way that directly benefits stakeholders across the ecosystem.
The growing role of Audit Artificial Intelligence is helping make this future a reality, strengthening confidence and trust in financial information.
Key Facts About Artificial Intelligence in Auditing
- Nearly 72% of companies surveyed are piloting or using AI in financial reporting, a number that is expected to grow to 99% within the next 3 years.
- 64% of companies surveyed expect auditors to play a key role in evaluating their use of AI in financial reporting delivering assurance and attestation over their AI controls.
- 100% of companies said their boards have taken strategic action to guide and oversee their use of Artificial Intelligence in financial oversight.
- 57% of companies plan to implement generative AI for financial reporting over the next 3 years reflecting its growing significance in financial oversight.
- AI currently accounts for 10% of the IT budget and is set to rise significantly in the near future demonstrating companies’ strong financial commitment to adopting and scaling their AI initiatives.
Conclusion
The transformation powered by artificial intelligence in auditing is reshaping financial oversight and delivering greater confidence, accuracy, and insight for stakeholders. This significant shift marks a new era where financial controls are more adaptable, trustworthy, and forward-thinking allowing companies to respond faster to changing regulations, manage financial risks, and make smarter, data-informed decisions.
As Audit Artificial Intelligence continues to grow in maturity and reach, the opportunity for auditors and financial teams to collaborate and drive innovation forward is greater than ever. This collaborative approach not only strengthens financial oversight but also helps businesses position themselves for sustained financial health, compliance, and resiliency in a rapidly evolving landscape.
Especially when supported by financial services outsourcing, companies can maximise their resources and enable internal teams to focus on high-value strategic initiatives further strengthening financial controls and oversight.
