Executives Embrace AI for Financial Reporting: Study

Financial executives and auditors are increasingly embracing Artificial Intelligence (AI) to enhance financial reporting and auditing processes. A study from the Review of Accounting Studies explores how financial executives perceive and respond to AI in these areas.

Researchers surveyed executives, including CFOs and controllers, to gauge their views on AI in financial reporting and auditing. While cautious, many executives see significant benefits in AI for their companies. They believe AI will augment, not replace, human roles, emphasizing the importance of human decision-making alongside AI.

The study also conducted an experiment on how executives respond to audit adjustments when AI is used by both their company and the auditor. Results showed executives were more receptive to AI when used by both parties, compared to when their company used humans to value assets. This suggests the importance of aligning technological approaches between parties.

Overall, the study highlights the growing integration of AI in finance and the evolving role of professionals in leveraging these technologies.

Financial executives and auditors are increasingly embracing Artificial Intelligence (AI) to enhance financial reporting and auditing processes. A study from the Review of Accounting Studies explores how financial executives perceive and respond to AI in these areas. Researchers surveyed executives, including CFOs and controllers, to gauge their views on AI in financial reporting and auditing. While cautious, many executives see significant benefits in AI for their companies. They believe AI will augment, not replace, human roles, emphasizing the importance of human decision-making alongside AI.

The study also conducted an experiment on how executives respond to audit adjustments when AI is used by both their company and the auditor. Results showed executives were more receptive to AI when used by both parties, compared to when their company used humans to value assets. This suggests the importance of aligning technological approaches between parties. Overall, the study highlights the growing integration of AI in finance and the evolving role of professionals in leveraging these technologies.