New research from the Financial Reporting Council (FRC) suggests the use of artificial intelligence in corporate reporting is increasing, but adoption remains cautious and uneven across the market.
The research found that generative AI is emerging as a valuable technology, particularly in narrative reporting, while use in financial statements remains limited.
Conducted by Lancaster University, with a team including academics from Loughborough University, the research reflects the FRC's commitment to understanding how technology and evolving business models are reshaping the reporting landscape, so that regulation remains responsive and proportionate. The FRC was encouraged to see strong interest from market participants in understanding how technology may shape the future of reporting and disclosures.
While companies are beginning to use AI and other technologies to support reporting processes, most deployment is focused on lower-risk, task-specific activities rather than areas requiring significant professional judgement.
Preparers identified trust, data quality, governance controls and concerns about legal, reputational and stakeholder risks as key barriers to wider adoption. Many also reported that the premium that investors and other users of corporate reports place on authenticity, alongside accuracy and accountability, is prompting firms to take a cautious approach in high-judgement areas of reporting.
The findings, alongside ongoing work from the Audit Tech and AI Sandbox and continuous stakeholder engagement, will continue to inform the FRC's work to ensure regulation keeps pace with the changing technological landscape.
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Read the full research here.