How AI is Transforming Financial Reporting for Businesses

The accounting profession is undergoing a deep change, not by the spreadsheet, but by artificial intelligence. In Australia, firm and professional AI agents, future-stage analytics, and machine learning are changing how financial reporting, auditing, forecasting, and advisory services are distributed.

1. A Surge in AI Adoption Among Australian Firms

According to KPMG’s 2024 survey, 75% of Australian companies are already using or piloting AI for financial reporting, with projected full adoption by 2027. Many invest between 10-20% of their IT budgets in AI, with expectations to grow significantly in 2025. This high adoption stems from AI’s unparalleled benefits: automation of data entry, anomaly detection, and real-time forecast capabilities.

2. Big Four & Beyond: Transforming Audit & Advisory

Australia’s Big Four firms (EY, PwC, Deloitte, KPMG) are leading the charge:

• EY has launched the EY.ai Agentic Platform, investing AUD 1 billion to embed AI agents across audit, tax, and finance workflows. These platforms handle thousands of transactions, previously sampling-flagging anomalies and reducing audit time dramatically.
  

  
  

• Similarly, RSM (US-based) is investing USD 1 billion in AI-driven compliance and audit tools, reflecting a broader global shift.
  

• EY also reports that its AI tools have cut manual audit work in half, freeing accountants to focus on strategic and interpretive tasks.

These investments aren’t replacing accountants-they’re enhancing their roles and injecting strategic value into advisory work.

3. AI’s Strategic Edge Beyond Automation

AI is more than a productivity booster. Its real value lies in:

• Predictive Cash Flow and Forecasting: Machine learning identifies trends and alerts for cash shortage.
  
• Real-Time Reporting: Cloud-ignorant AI (eg, zero, QuickBooks) enables data-supported decision making and risk management.
• Detection of Enhanced Risk and Fraud: Full-detected analysis replaces samples, highlighting discrepancies with high accuracy.
• Smart Client Communication: Chatbots draft client email, submit the meeting briefly, and schedule to make schedule-free professionals strategic.

4. Governance & Ethics: Balancing Power with Responsibility

As AI penetrates finance, governance structures must evolve in tandem:

• ASIC and AUSTRAC report ethical deployment challenges and the need for clear AI-use policies, bias mitigation, and human oversight.
• KPMG found that 75% of firms are constructing an AI framework responsible for reducing risks such as privacy violations and algorithm bias.
• Ethical auditing becomes important, ensuring that AI outputs are clear and obedient.

5. Real-Time Reporting: The Next Frontier

The trend toward continuous financial insight continues:

• Companies now demand real-time tracking of liquidity, expenses, and performance shift, enabled by AI integrated into cloud accounting.
  

• This provides CFOs with live dashboards, proactive risk management tools, and enhanced decision agility.

6. Upskilling Australia’s Finance Talent

As AI liberates accountants from manual tasks, they are pivoting toward strategic roles:

• KPMG reports that 80% of Australian firms consider technical skills (eg AI) to be essential for development.

• Many professionals integrate AI in routine functions such as completing writing, cash flow forecasting, and summarizing, saving firms up to 79 minutes per day. 

• Cultural Changes: Firms are focusing on increasing the efficiency of employees to flourish in morality training, overseas committees and hybrid AI-human environment.

7. Emerging Innovations to Watch

• Blockchain and Triple-Element Systems: A-Nhens blockchain and triple-entry accounting promise unique audit transparency and fraud resistance.

• Quantum Security: Early-phase research examines Quantum Inceive SAFE encryption for a future-proof financial system.

• Embedded Finance and ESG Reporting: A-ST equipment automated ESG revelations and integrate banking services in non-financial platforms, increase compliance and customer value.

8. The Human+AI Future

Professionals increasingly view AI not as a replacement, but as an amplifier of human insight:

“AI speeds up the boring parts-humans interpret the nuance.”

This partnership enables accountants to step into strategic advisors, focusing on analysis, relationships and governance. The efficiency benefit of 30–40% allows for active, price-operated finance departments.

Conclusion

Australia leads a global AI change in accounting. From audit automation to real-time finance insights and elevated roles for professionals, AI is re-shaping the profession for better. But the revolution is only sustainable with a balance of:

• Governance - Ethical frameworks and human oversight

• Talent Growth - Training in emerging tech and advisory skills

• Strategic Integration - Align AI with financial goals and operational workflows

The success of 2025 and beyond means rebuilding finance around the smart system and human decision-making working in harmony.