Research into the use of AI and complementary technologies in corporate reporting

By Steven Young, Professor Of Accounting and Associate Dean at Lancaster University Management School

Artificial intelligence (AI), including machine learning, generative AI, and autonomous AI agents, is emerging as a disruptive force in corporate reporting, promising unprecedented gains in efficiency, insights, and data integrity. Structured digital reporting (such as XBRL taxonomies and digital filing) is further amplifying opportunities for AI and complementary technologies such as robotic process automation, advanced data analytics, and blockchain to reshape the production of financial and non-financial information in corporate reports.

The FRC has commissioned a team from Lancaster University to conduct independent research into the real-world adoption and impact of AI and other automation technologies by UK PIEs in all areas of corporate reporting including production of annual reports and accounts, sustainability reports, and other investor communications. The work will inform the FRC’s regulatory practice and policy. (See project announcement here.)

The research will address three core areas:

• Methods and application
• Benefits and barriers
• Governance

Internal audit is expected to play an important role in ensuring that tech. adoption delivers high-quality, accurate and truthful corporate reporting. Potential contributions include providing oversight that AI and automation are being applied appropriately and with due consideration in the reporting process, assurance around the quality of data inputs and outputs, and assurance over broader AI risks and opportunities.

We are conducting in-depth interviews with teams involved in the production and oversight of investor communications, and we are interested in exploring these issues from the perspective of internal audit.

We are keen to speak with representatives at different levels of the control hierarchy working for UK PIEs at different stages of AI adoption maturity.

Project partners include the ICAEW and the IR Society who are facilitating access to participants and sharing sector expertise.

Participation in the research will remain confidential to the research team, and all information will be fully anonymised when reporting results to the FRC.

To express an interest in participating in the research, please complete this short online form.

If you have any questions about this project, please get in touch with us at ai-reporting@lancaster.ac.uk.