Executives Embrace AI in Reporting and Auditing, Study Finds

A groundbreaking study published in the forthcoming issue of Review of Accounting Studies sheds light on the attitudes of financial executives towards the utilization of Artificial Intelligence (AI) in financial reporting and auditing processes. Authored by Cassandra Estep from Emory University, Emily Griffith of the University of Wisconsin, and Nikki MacKenzie from Georgia Tech, the research delves into the perceptions and responses of financial executives, including CFOs and controllers, regarding the incorporation of AI technologies.

MacKenzie, one of the researchers, emphasizes the importance of understanding how financial executives embrace AI-generated insights, given the collaborative nature of financial statement preparation between companies and auditors. Contrary to previous assumptions, the study reveals that financial executives exhibit cautious optimism rather than aversion towards AI adoption. Many respondents expressed excitement about AI’s potential to enhance their companies’ financial reporting processes.

While concerns about job displacement by AI persist, the survey results suggest that financial executives view AI as a complement rather than a replacement to human expertise. The human element in decision-making remains pivotal, particularly when AI is integrated into corporate operations.

In an experimental segment of the study, financial executives’ reactions to audit adjustments varied depending on whether AI was utilized by both the company and the auditor or only by one party. Executives were more receptive to audit adjustments when both parties employed AI technology, highlighting the importance of technological alignment between stakeholders.

MacKenzie underscores the implications of these findings beyond the realm of accounting, suggesting that considerations of technological parity could influence client receptivity in professions like consulting.

In conclusion, MacKenzie advocates for a balanced approach towards AI integration, emphasizing its potential to enhance efficiency and effectiveness in financial processes. The study’s findings serve as a reassuring affirmation for the accounting profession, signaling that while job functions may evolve with technological advancements, the fundamental role of accountants remains intact. This, in turn, could inspire the next generation of accountants to embrace and leverage advanced technologies in their careers.