The impact of AI on auditing and financial reporting is at the heart of our 2024 global study AI in financial reporting and audit: Navigating the new era.
In early 2024, KPMG surveyed 1,800 business leaders across 10 countries, including 100 from Australia. Globally we found that although AI claims around 10 percent of IT budgets today, substantial investment increases are on the way – nearly half of the respondents anticipate a 25 percent rise in AI investment in 2025.
When looking deeper into AI uses across financial reporting and auditing, leadership expectations are also growing – most organisations deem AI as crucial for external audits, and highly value its automation and data analytics capabilities.
We explore some of the key insights from our report and look into the perceived benefits and risks facing organisations as they invest in this evolving technology.
Benefits and risks of using AI in financial reporting
Historically, financial reporting and auditing has the reputation of being time-consuming and error-prone, requiring statistical sampling and manual data checking. Today, AI is enabling more rigorous, accurate and timely audits, while offering predictive insights throughout the year.
Learnings from the research indicate that AI significantly reduces company costs, boosts employee productivity, and attracts talent.
- Anomaly detection (61%)
- Trend, impact and risk predictions (60%)
- Improved evidence-based decision-making (58%)
- Real-time risk, fraud and weakness insights (56%)
- Increased data accuracy and reliability (51%)
- Relevant, consistent data collection (49%)
- Uncertain ROI (49%)
- Financial reporting and auditing data accuracy (46%)
- Cyber security (45%)
- Regulation compliance (44%)
Download the report
AI in financial reporting and audit: Navigating the new era
Discover what leaders are saying about the use of AI in financial reporting and auditing, and how it has been successfully implemented around the globe.
AI in financial reporting and audit: Navigating the new era
Financial reporting leaders’ AI expectations for their companies and external auditors
How KPMG can support AI disruption in financial reporting
KPMG has established a strong mindset of innovation through our smart audit platform, KPMG Clara – designed to deliver a consistent risk-focused audit. It offers embedded digital capabilities that use data directly from client financial systems to improve client collaboration.
Our clients are also supported by deep subject matter expertise, industry knowledge and a unique strategic framework that helps design, build, deploy, and use AI solutions in a responsible and ethical manner while accelerating value.
KPMG's AI in Audit specialists
