KPMG: Audit is moving from digital to the era of artificial intelligence

By: Trademagazin Date: 2024. 06. 14. 09:52

Artificial intelligence is starting a real revolution in the field of financial reporting and auditing. Almost three-quarters of companies already use this to some extent to prepare their financial reports, and this will rise to 99 percent within three years, KPMG states in its new research. Of course, there are many obstacles in the way of the application of artificial intelligence, many are worried about issues related to accuracy, data security or privacy, for example. However, the use of AI has many advantages, such as the ability to predict trends and impacts, to understand risks in real time, or to make better decisions based on data. New skills in auditing are now essential. So companies need to invest in AI technologies and prepare their entire organization for it.

“We are moving from the digital era to the AI era in the field of financial reporting and audit; the transformation is inevitable, and it’s already around the corner,” affirms Albert Simonyi, the new head of KPMG’s auditing business in Hungary, referring to the company’s recent survey. With laser-precision and highly detailed audit processes powered by artificial intelligence, financial reporting in the future will be smarter and better than ever. In the case of audit, all of this means not only a technological change, but also a paradigm shift, redefining the role of auditors and reshaping the accounting industry as a whole.

KPMG wanted to know how financial reporting leaders are progressing with the introduction of artificial intelligence in the finance function, what impact it has on internal finance teams, and what they expect from external auditors. The experts therefore surveyed 1,800 financial reporting managers and board members in six industries, ten countries and companies with different sales revenues between February and March 2024.

The board of directors of every company in the survey has already taken strategic steps related to AI. Artificial intelligence spending now accounts for 10 percent of the IT budget, and this proportion will rise significantly in the future. Although only 10 percent of businesses currently use artificial intelligence extensively in this area, almost three-quarters of companies already use AI in part or on an experimental basis, and another 27 percent plan to do so. And within three years, the proportion of those who use artificial intelligence at some level will rise to 99 percent.