Finance Executives Embrace AI to Enhance Corporate Reporting

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The 2024 EY Global Corporate Reporting Survey reveals a growing trend among finance leaders: turning to Artificial Intelligence (AI) to address concerns about data integrity and reliability in corporate reporting. This shift comes as businesses face increasing pressure to provide accurate financial and nonfinancial disclosures.

Key Survey Findings

  1. Data Integrity Concerns: 96% of finance leaders worry about the reliability of their nonfinancial data.
  2. Sustainability Reporting Challenges: Only 47% of finance leaders and 53% of investors believe most companies are on track to meet stated sustainability goals.
  3. Increased Stakeholder Focus: 69% of finance leaders note heightened investor interest in nonfinancial value drivers compared to two years ago.
  4. Greenwashing Fears: 55% of respondents express concern about potential greenwashing allegations in their industries.

The Promise of AI in Corporate Reporting

Despite apprehensions, many see AI as a potential solution:

  • 57% of investors believe AI could be very useful in assessing the credibility of financial and nonfinancial disclosures.
  • 52% think AI could help evaluate alternative data.
  • 51% see AI’s potential in spotting discrepancies in company disclosures.

Challenges in AI Adoption

While 43% of finance leaders are enthusiastic about using AI in corporate reporting, concerns remain:

  • 29% are waiting for better understanding of AI risks.
  • 39% are apprehensive about costs.
  • 36% worry about compliance with AI-related regulations.

Expert Perspectives

Myles Corson, EY Global and Americas Strategy and Markets Leader, emphasizes the critical role of data in guiding organizations through short-term volatility while maintaining long-term growth.

Nicolas Lecoq, EY Global Financial Accounting Advisory Services Leader, highlights the growing importance of building confidence in sustainability reporting, noting its impact on investor trust and public perception.

Looking Ahead

As businesses navigate these challenges, finance leaders are advised to:

  1. Focus on creating sustained value
  2. Build confidence in reporting
  3. Harness technology to enhance data analytics

While AI adoption in corporate reporting is still in its early stages, its potential to transform data analytics and reporting is undeniable, promising benefits for all stakeholders in the financial ecosystem.

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