AI Revolution in Financial Reporting: A Comprehensive Insight from KPMG

A recent survey by KPMG, titled «Navigating the AI Era in Financial Reporting,» reveals a significant trend towards AI adoption among financial reporting leaders in the United States, as stated in FinTech Magazine. According to the report, an overwhelming 100% of leaders expect to be either piloting or actively using AI within the next three years, a substantial increase from the current 71%. The survey also highlights a robust inclination towards leveraging Generation AI for reporting purposes, with 97% of respondents planning to use this technology soon.

This shift is mirrored in financial investments, with US companies allocating 10.1% of their IT budgets to AI-related activities—a figure that is predicted to grow. The push for AI is not just about technology adoption but also involves preparing the workforce. Scott Flynn, KPMG US Vice Chair — Audit, emphasizes the importance of upskilling external auditors to effectively use AI and assess control environments. «Financial reporting leaders are rapidly accelerating investments to use AI and Gen AI to not just gain efficiencies but create more value for their organizations by predicting trends and identifying emerging risks,» Flynn explains.

The survey, which included 1,800 companies across 10 major markets with 300 respondents from the US, was conducted following the launch of KPMG’s Digital Finance platform. This new initiative provides a modern technology stack aimed at enhancing industry-wide financial practices.

Despite the promising advancements, challenges remain. The survey reports that 56% of respondents are concerned about data security and privacy as significant hurdles in AI implementation. Other notable challenges include the need for more skilled personnel, concerns over data quality, and a call for increased funding to further enhance technology capabilities.

As the landscape of financial reporting evolves, KPMG’s findings underscore the critical role of AI and Gen AI in shaping future industry standards, offering both opportunities and challenges for professionals in the field.

Other articles
NCR Voyix Offers US Restaurants a QR Powered Pay-At-Table Software Solution
The Beginning of AI and Embedded Finance: Insights from Visa at the Dubai FinTech Summit
Parkopedia and Irdeto Collaborate to Revolutionize EV Charging
Temenos Launches Responsible Generative AI Solutions for Core Banking
A Micro-Investing App Is Debut by FutureMoney to Assist Families in Securing Their Financial Future
Commerce Bank Adopts FedNow via Temenos Payments Hub to Boost Modernization
Personetics: Examining the Effects of AI on Banking
bunq Enhances AI-Driven Banking and Travel Insurance Offerings
Shaping the Future of Payments: Insights from Tribh Grewal at Pay360
Visa Unveils Digital-First Products for the Modern Age
How Automation is Transforming Financial Institutions’ Ongoing Monitoring
Temenos Unveils Generative AI Solutions for Banking Efficiency and Profitability
Moody’s: AI Rollout Should be a ‘Balancing Act’ for Financial Institutions
Securing the Future: Enhancing Fintech Operations with Dynamic Risk Assessment
April Demands for Mobile Tax Filing with Self-Guided Instructions