Artificial Intelligence (AI) in Corporate Financial Reporting

Overview

The rapid advancement of Artificial Intelligence (AI) technologies is transforming the landscape of corporate financial reporting. As businesses strive to enhance the accuracy, efficiency, and transparency of financial disclosures, AI is emerging as a transformative force across various aspects of financial reporting and corporate disclosure practices. From automating routine tasks to enhancing predictive analytics, AI has the potential to revolutionize how financial data is collected, processed, and disclosed. Businesses have increasingly adopted AI-driven tools such as machine learning, natural language processing (NLP), and robotic process automation (RPA), the traditional methods of financial reporting are undergoing a profound transformation. This project seeks to explore the impact of AI on corporate financial reporting practices, with a focus on understanding how AI can improve the accuracy, transparency, and efficiency of financial disclosures.

AI has the potential to address several longstanding challenges in financial reporting, including the need for greater accuracy, timeliness, and transparency. For instance, AI-powered algorithms can automate the extraction and processing of financial data from diverse sources, reducing the risk of human error and enhancing the efficiency of reporting processes. Additionally, AI can enable real-time financial reporting, allowing stakeholders to access up-to-date financial information and make more informed decisions. Predictive analytics, powered by machine learning, can also provide forward-looking insights, helping companies anticipate future financial trends and risks. However, the adoption of AI in financial reporting is not without its challenges. Issues such as data privacy, algorithmic bias, and the interpretability of AI-driven insights pose significant ethical and regulatory concerns. Furthermore, the integration of AI into financial reporting processes requires a careful balance between innovation and compliance with existing accounting standards and regulations. This project will critically examine these challenges and explore how they can be addressed to ensure the responsible and effective use of AI in financial reporting.

Aim and Objectives

The aim of this research is to provide a comprehensive understanding of how AI technologies are reshaping corporate financial reporting and to identify best practices for their implementation. The specific objectives of the project are:

1, To assess the current state of AI adoption in corporate financial reporting and identify key trends and drivers.

2, To evaluate the impact of AI on the quality and reliability of financial disclosures, including the potential for real-time reporting and predictive analytics.

3, To explore the ethical and regulatory challenges associated with the use of AI in financial reporting, including issues of transparency, accountability, and bias.

Method

This project will adopt a flexible and data-driven approach, leveraging a combination of quantitative and qualitative methods to analyse the impact of AI on corporate financial reporting. Potential methodologies include:

• Machine Learning (Supervised, Unsupervised, and Semi-Supervised Models): To identify trends, patterns, and anomalies in AI-driven financial disclosures across industries.
• Natural Language Processing (NLP): To assess corporate disclosures (e.g., annual reports, earnings calls, and regulatory filings) evaluating AI’s influence on financial reporting transparency.
• Thematic and Content Analysis: To explore the ethical, regulatory, and governance implications of AI in financial disclosures.

By integrating these methods, the study aims to provide a comprehensive understanding of how AI is reshaping financial reporting, ensuring transparency, accuracy, and compliance with corporate governance standards.

Supervisors

Associate Professor Yan Wang

Dr Albert Acheampong

Nottingham Business School is triple crown accredited with EQUIS, AACSB and AMBA – the highest international benchmarks for business education. It has also been ranked by the Financial Times for its Executive Education programmes in 2023 and 2024. NBS is one of only 47 global business schools recognised as a PRME Champion, and held up as an exemplar by the United Nations of Principles of Responsible Management Education (PRME).

Its purpose is to provide research and education that combines academic excellence with positive impact on people, business and society.  As a world leader in experiential learning and personalisation, joining NBS as a researcher is an opportunity to achieve your potential.

Applications for October 2025 intake closes on 1st July 2025 and applications for Jan 2026 intake closes on 1st October 2025.