Fintech
KPMG: The era of artificial intelligence in financial reporting insights
Scott Flynn, Vice President Audit at KPMG US, says: “It is clear that financial reporting leaders are rapidly accelerating investments to use AI and AI generation to not only drive efficiency, but also create more value for their organizations by predicting trends and identifying emerging risks.
“Understanding the range of complementary investments in cloud, data and governance is critical for both financial reporting leaders and external auditors to mitigate risks arising from this rapid transformation.”
Benefits and risks of artificial intelligence for financial journalists
With plans across all US companies to expand AI and Gen AI capabilities into the financial reporting function, KPMG reports that 73% of companies will see increased benefits in real-time risk analytics, fraud, and weak controls .
Additionally, 67% will see increased data accuracy and reliability, while 62% will be able to reap the benefits of reduced costs.
On the other hand, despite plans to advance the onboarding of AI and Gen AI capabilities, 56% of KPMG respondents indicated that data security and privacy concerns are the biggest barriers to implementing success of this new technology.
Additionally, 46% of organizations surveyed are concerned about the limited skills and talent needed to effectively use Gen AI. Meanwhile, 44% express concern about the quality of their data for AI to be put to good use, and 43% say they need greater funding and levels of investment to improve their technology.
Therefore, while barriers remain to the successful adoption of AI and Gen AI in financial reporting, the industry is unanimous in believing that AI and Gen AI can drive efficiency and create more value at the organizational level.