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      How is AI transforming financial reporting and auditing today?

      Artificial intelligence (AI) is reshaping the finance sector — from automating financial reporting to enhancing audit quality and enabling predictive analytics. But how far can AI go in transforming the role of the auditor and improving decision-making in financial institutions?

      According to the KPMG Global AI in Finance Report (Nov. 2024), 73% of companies in Switzerland are piloting or already using AI in financial reporting. This number is expected to reach nearly 100% within the next three years.

      The growing use of AI in finance brings substantial benefits:

      • It automates repetitive, manual tasks, improving speed and accuracy.
      • It enables real-time analysis, including fraud detection and anomaly recognition.
      • It supports predictive analytics, allowing companies to forecast financial outcomes and anticipate risk.

      At the same time, AI introduces new challenges such as algorithmic transparency, data quality issues, and ethical concerns. Responsible use and oversight of AI systems are essential to maintain trust among regulators, investors and stakeholders.

      Florian
      Florian Häller

      Director Audit Corporates and Co-Head Audit & Assurance Technology

      KPMG Switzerland

      Joao Adams Vieira KPMG Switzerland
      João Adams Vieira

      Director, AI Lead, Technology Advisor

      KPMG Switzerland

      KPMG Global AI in Finance Report

      AI in financial reporting & audit report

      AI in financial reporting & audit report - November 2024

      In early 2024, KPMG conducted a global survey with 1’800 financial reporting executives. A follow-up study in November 2024 expanded this effort to 23 developed and emerging markets — including Switzerland

      Download

      Find the most important study highlights

      73%

      of companies in Switzerland use AI in financial processes, highlighting the rapid growth of AI adoption in finance.

      42%

      apply it to a moderate or significant extent. The most advanced regions are North America, ASPAC and Europe.

      53%

      of firms allocate only 5-15% of their IT budget to AI initiatives, indicating that despite rising usage, many companies still invest cautiously in AI.

      What are the most common use cases?

      Participating companies most frequently use AI for:

      • Research and data analysis
      • Fraud detection and prevention
      • AI powered and automated financial reporting
      • Risk assessment

      As adoption increases, companies are also integrating AI across departments — including compliance, tax and treasury. This cross-functional use enables stronger risk management and more consistent reporting practices.

      Top AI cases in finance > Click on the image to enlarge it

      What are the main barriers to AI adoption?

      As organisations adopt AI, data security emerges as a critical concern - especially in early stages. Without robust safeguards, sensitive information may be exposed, undermining trust and compliance. Leading companies counter this risk by investing in strong cybersecurity and cloud infrastructure, forming the foundation for secure and scalable AI operations.

      A shortage of AI expertise can slow progress and increase operational risk. In early adoption phases, many teams lack the skills to deploy and govern AI effectively. Successful organisations prioritise AI-specific training and structured change management to build internal capabilities and support long-term innovation.

      As AI maturity increases, ensuring consistent, high-quality data becomes a top priority. Inconsistent or fragmented data can compromise model performance and increase the risk of bias - especially in generative AI applications. Mature organisations address this by aligning governance frameworks with regulatory demands and investing in scalable data infrastructure.

      What are the key benefits of AI in financial reporting?

      AI is actively transforming how finance teams operate. The benefits include:

      • Automated financial reporting

        AI reduces manual workload and improves consistency with standards such as IFRS, GAAP etc.

      • AI-powered audits

        Improve audit trail transparency and reduce false positives

      • AI in risk management

        Algorithms identify anomalies and risks in real-time

      • Natural Language Processing (NLP)

        Extracts key insights from unstructured data sources like contracts or emails

      • Predictive analytics

        Supports better forecasting and strategic planning

      • Financial statement analysis

        AI supports identifying discrepancies and patterns across vast datasets

      How can companies assess their AI readiness?

      To assess how far AI has progressed in financial reporting and other finance functions, KPMG created an AI maturity framework centered on three main survey questions:

      • Current use of AI in financial reporting: Over the past six months, how much progress has your company made in the use of AI, specifically in financial reporting? How much progress does your company plan to make in three years?
      • Adoption level of generative AI: Over the past six months, how much progress has your company made in the use of generative AI, specifically in financial reporting? How much progress does your company plan to make in three years?
      • Integration of AI across risk, treasury, accounting, tax and planning: How much progress has your organization made in leveraging AI across the following financial areas? (Risk management, treasury management, accounting, financial planning, and tax operations, reporting, and planning).

      Beyond the initial assessment, organisations should review how their AI efforts align with broader business strategy. This includes evaluating whether AI tools deliver measurable benefits — such as reduced audit cycles, better reporting quality or improved compliance.

      • Building trust through cross-functional working groups

        Successful companies often establish cross-functional AI working groups that bring together finance, IT, internal audit and compliance to ensure a coordinated approach.
        These efforts help build trust, standardise practices and improve scalability.

      Want to benchmark your organisation?

      Try our AI Maturity Assessment Tool to identify your current AI stage and key areas for development.

      Click here for the analysis

      What does the future of AI in auditing look like?

      AI is set to make audits faster, smarter and more predictive. Rather than replacing auditors, it will support them by automating routine tasks and enabling data-driven insights. Companies increasingly expect auditors to integrate AI into their work and advise on governance and controls.

      Key developments in AI-driven auditing include

      • Real-time and continuous auditing

        AI enables early detection of risks and financial inconsistencies

      • Predictive analytics

        Auditors can identify emerging issues before they escalate

      • Generative AI

        Assists in analysing unstructured data and drafting standardised reports

      As these technologies mature, the role of the auditor evolves — focusing more on interpretation, ethics and strategic insight, while AI handles data-heavy processes.

      These digital audits, powered by machine learning and generative AI, will offer greater transparency, speed and insight than traditional approaches.

      Audit powered by KPMG Clara

      How to get started?

      • Determine your ambition
        • How important is AI to your business or financial reporting function?
        • Do you want to be an AI leader in your industry?
        • How do you see your business evolving based on AI?
        • Which opportunities does AI open up for your company?
      • Determine your maturity level based on our assessment
        • Where do you fit in KPMG’s AI Maturity assessment?
        • How much progress has your company made in terms of how it uses AI for financial reporting?
        • Which AI-related steps has your company already taken?
      • Align your ambition, maturity and strategy
        • Are you funding AI sufficiently?
        • Do you have established AI governance and frameworks?
        • Are you addressing barriers to AI and financial reporting?
      • Look for support

        Look to leaders for ways to enhance your financial reporting with AI. KPMG's Trusted AI approach emphasizes principles such as fairness and transparency. This option supports an ethical use of AI that adds value and benefits clients.

        KPMG can also demonstrate how AI is capable of improving both corporate governance and audit quality.

      Partnering for success: submit your interests and open question

      Reach out to discuss how we can support your needs and drive innovation together.

      Audit powered by KPMG Clara

      Meet our experts

      Florian
      Florian Häller

      Director Audit Corporates and Co-Head Audit & Assurance Technology

      KPMG Switzerland

      Joao Adams Vieira KPMG Switzerland
      João Adams Vieira

      Director, AI Lead, Technology Advisor

      KPMG Switzerland

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