KUALA LUMPUR: Some 10 per cent of companies have widely adopted artificial intelligence (AI) in financial reporting, while nearly 72 per cent are piloting or using it selectively, according to a global survey by KPMG International.
The survey titled "AI in Financial Reporting and Audit: Navigating the New Era” also reported that 99 per cent of organisations are expected to adopt AI into their financial reporting processes in the next three years.
KPMG Malaysia head of audit Foong Mun Kong said the growing adoption of AI in financial reporting signifies a transformative shift beyond mere technological advancements.
"The roles of auditors are being redefined as businesses are looking to their auditors to lead the AI transformation due to their deep understanding of financial reporting processes and their abilities to pinpoint areas where AI can add the most value.
"As a result, audits are shifting towards being more real-time and predictive, significantly transforming how insights are delivered,” he said in a statement today.
The survey also reported that over four out of 10 companies already reported greater employee productivity and efficiency, and this figure is expected to rise to six out of 10 within three years
As AI development gains pace, the survey discovered that 64 per cent of companies expect auditors to conduct a more detailed review of the control environment relating to their use of AI in financial reporting.
The KPMG survey further found that more than half (52 per cent) of businesses want their auditors to prioritise predictive analysis, 47 per cent desire faster speed of delivery and 45 per cent seek real-time auditing throughout the year. - Bernama
