The KPMG survey reveals that approximately two-thirds of senior executives and board members within prominent Irish organisations are either deploying or testing artificial intelligence (AI) for financial reporting. The implications of this development, as stated by Niall Savage, KPMG’s leader of audit markets in Ireland, are monumental, with AI set to drastically impact operational aspects such as governance, systems, controls and processes of financial reporting in foreseeable future.
According to this international survey by KPMG, Ireland’s latest data is part of a large-scale study spanning multiple countries including the US, UK, Australia, Canada, France, Germany, Japan, the Netherlands, Spain and the Republic. The focus of the research was major corporations earning between $250 million (€234 million) and over $1 billion annually. These corporations are involved in sectors like retail, energy, chemicals, healthcare, industrial manufacturing, technology and financial services.
As per the survey, Irish executives engaged in financial reporting pinpoint key benefits of AI to include trend forecasting and understanding the implications (68%), facilitating superior, data-powered decisions (65%), and delivering real-time insights into risks and data precision enhancement (both at 62%). The survey also shows AI forming 10% of typical IT budgets amongst respondent companies in Ireland. Over half anticipated boosting their AI investment by over 25% in the coming year.
It has also been observed that Irish and international company boards are progressively making strides to responsibly utilise AI throughout their operations, as mentioned by KPMG. Globally, the majority of leading companies prefer their auditors to incorporate AI for quality control, risk identification and mitigation, and data analysis purposes. Despite issues with data exactitude and privacy, adopting AI is seen to be beneficial due to enhanced decision-making and efficiency, as stated by Keith Stafford, audit IT partner at KPMG in Ireland.
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