AI is shaking things up in financial reporting and auditing, and the changes are happening fast. Imagine replacing manual processes and statistical sampling with automated data collection, real-time anomaly detection, and predictive insights. That’s exactly what companies are doing with AI—and it’s a total game-changer.

But it’s not just about efficiency; AI empowers auditors and financial leaders to manage risks better and unlock deeper value from their audits. According to KPMG’s survey of 300 companies in the US—we’re standing at the edge of an AI-driven revolution.

Let’s dive into the KPMG report and see how this shift is transforming how financial reporting and auditing will be done soon.

AI Transformation in Finance: 99% Adoption Across Industries by 2027

As per the KPMG Global study, AI adoption in financial reporting is accelerating rapidly. Currently, 75% of businesses are leveraging AI, and this figure is expected to reach 99% within three years, highlighting its transformative impact on the industry.

Companies are making AI a strategic priority, with 10% of IT budgets dedicated to it and Boards across all surveyed organizations taking deliberate action to embrace it.

Technology, media, and telecom (49%) lead in adoption, followed by industrial manufacturing (35%), while healthcare and financial services (31% each) are steadily catching up. North America, Europe, and ASPAC are at the forefront of this global trend.

Larger companies (>$10 billion revenue) are ahead, with 41% already using AI, compared to 35% for mid-sized firms and 32% for smaller ones, underscoring the role of resources in adoption.

The study confirms that AI is reshaping financial reporting, with its adoption becoming a strategic imperative for businesses worldwide.

97% of US Leaders Are Betting on GenAI: What’s Driving the Surge?

Every US financial reporting leader expects to adopt AI within the next three years, a big jump from 71% today. Even more intriguing, 97% plan to integrate generative AI (GenAI)—nearly doubling its current use.

This isn’t just about speeding up workflows but fundamentally changing how financial reporting and auditing are done. AI is helping companies automate tasks, identify risks, and generate predictive insights, while GenAI is taking things further—creating reports, streamlining audits, and enabling leaders to focus on strategy over manual work.

The rapid move toward AI-driven processes raises the bar for the entire industry. Let’s dive deeper into how this transformation reshapes finance and what it means for businesses.

What’s Driving 70% of US Leaders to Rely on AI in Financial Reporting?

AI is reshaping financial reporting and auditing, enabling leaders to work smarter and faster with greater accuracy. The benefits outweigh the challenges, but what drives this transformation?

For starters, 70% of financial leaders say AI gives them real-time insights into risks, fraud, and control weaknesses—a game-changer for proactive decision-making. Then there’s the cost factor: 58% report significant savings, proving that AI isn’t just smart, it’s efficient too. In addition, it can predict trends and impacts, which is valued at 57%, and you’ve got a tool that helps companies stay ahead of the curve.

AI is also boosting data accuracy and reliability, with another 57% emphasizing this benefit, and 53% highlighting AI’s role in enabling smarter, data-driven decisions. It’s clear—AI isn’t just improving financial reporting; it’s transforming it.

Why 33% of US Companies Are Leading the Global AI Race?

The US is leading in AI adoption for financial reporting, with 33% of companies recognized as AI leaders—well above the 24% average globally. These leaders, distinguished by their advanced use of AI and strong governance, are transforming financial processes at a pace that others are struggling to match.

Within the US, the gap is clear: 98% of AI leaders are already using AI widely or selectively, compared to just 22% of other companies. This leadership isn’t just about adopting AI—it’s about using it strategically to gain a competitive edge.

Generative AI (GenAI) is emerging as the centerpiece of this transformation. While still in its early stages, 58% of financial reporting leaders have prioritized GenAI for next year, marking it as the most sought-after technology for future growth.

The shift signals a move toward smarter, faster, and more predictive financial processes, with US companies leading the charge. The real challenge for others? Catching up to these trailblazers.

28% Budget Boost: Why US Companies Are Doubling Down on AI?

US companies are leading the charge in AI investments, dedicating a larger share of their IT budgets to AI-related activities than their global peers. This commitment is set to grow significantly, with AI budgets increasing steadily over the next few years.

While companies globally are ramping up investments, US leaders—those most advanced in AI adoption—are making the biggest moves. They plan to increase their budgets by 25% next year and nearly 28% over the next three years, highlighting their strategic focus on leveraging AI to drive innovation and efficiency.

These investments reflect a clear understanding of AI’s transformative potential, from delivering real-time insights to automating complex processes. As the financial reporting landscape evolves, those willing to invest now will gain a decisive edge in shaping the industry’s future.

Why 83% of Companies Are Pushing Auditors to Embrace AI?

With AI becoming central to financial reporting, organizations are now looking to their external auditors to fully embrace this technology. More than 80% of companies want auditors to use AI in their work—up sharply from 61% last year—highlighting the growing demand for smarter, faster, and more precise audits.

AI is expected to transform a wide range of auditing activities, from advanced data analysis and anomaly detection to risk mitigation and fraud detection. Companies also see predictive analysis as a critical tool for auditors, enabling them to provide forward-looking insights rather than relying solely on traditional methods.

For auditors, the takeaway is clear: adopting AI is no longer optional—it’s quickly becoming the standard for delivering deeper insights and maintaining trust in financial processes.

So, Where does this AI-driven transformation leave us? 

AI is no longer just an emerging tool—it’s becoming the foundation of financial reporting and auditing. From real-time insights and predictive analytics to cost savings and improved decision-making, the advantages are clear. US companies, particularly AI leaders, are paving the way with significant investments and a focus on generative AI.

But success isn’t just about adopting technology—it’s about aligning governance, processes, and expertise to make the most of it. As auditors prioritize AI and companies scale their investments, the future of financial reporting is smarter, faster, and more dynamic. 

The challenge now? Moving beyond experimentation to fully unlock AI’s transformative potential.