According to the KPMG Global Audit Head of AI, companies worldwide are investing heavily in artificial intelligence (AI), with Australia leading the way. An international study found that 75% of Australian companies are currently using or testing AI in their financial reporting, with expectations of increased investment in AI in the coming years.
The study, conducted by KPMG and surveying 1,800 company leaders across 10 countries (including 100 in Australia), revealed that Australian companies rank third in AI adoption, behind only Canada and the UK. KPMG predicts that AI adoption in financial reporting by Australian companies will reach 100% within the next three years.
Currently, traditional AI and rule-based AI are the most valued technologies by Australian firms for financial reporting, followed by robotic process automation, machine learning, and deep learning. However, generative AI, such as ChatGPT, is expected to surpass other technologies in the near future.
While only 9% of Australian companies currently use generative AI, 52% of surveyed leaders consider it a top priority for financial reporting by 2027. Additionally, there is a growing trend in AI investment among Australian companies, with over half allocating 10-20% of their IT budget to AI.
Despite the push for AI adoption, concerns about the risks associated with the technology remain. Around 31% of leaders surveyed expressed significant concerns about copyright issues related to AI, with the percentage increasing to 40% for those implementing generative AI. Data sovereignty and management concerns also rose significantly with generative AI adoption.
KPMG emphasizes the importance of addressing AI risks and implementing robust AI governance to ensure the ethical and safe use of the technology. As companies continue to embrace AI in financial reporting, staying informed about regulatory changes and maintaining trustworthiness in AI algorithms are crucial.
The study’s findings coincide with a government survey showing that a majority of Australians distrust articles written by AI, highlighting the need for transparency in AI usage by news outlets. Please rewrite this sentence.
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