University of Twente Student Theses
Financial reporting in the era of AI : the response of companies in the Netherlands to the challenges posed by machine readership
Pocriciuc, Arina (2024) Financial reporting in the era of AI : the response of companies in the Netherlands to the challenges posed by machine readership.
|
PDF
413kB |
| Abstract: | This thesis investigates the impact of Artificial Intelligence (AI) on financial reporting practices in medium to large, listed companies in the Netherlands. By surveying financial managers, accountants, and related professionals, the study explores how AI tools are influencing financial disclosures, the challenges this entails for companies and the strategies companies adopt in response. The findings highlight a dual effect of AI integration on the side of the financial markets: while AI enhances the efficiency and precision of financial analysis, it also introduces significant risks. The overreliance on AI-generated outputs can lead to biases and a reduction in human oversight, complicating investment decisions and market operations. In response, companies are planning on implementing several strategic measures, such as meticulous drafting of financial statements, compliance with existing regulations, enhanced employee training with AI tools, fostering open communication with both employees and investors, and conducting internal audits to mitigate risks. These adaptations underscore the necessity of balancing AI's advantages with continuous human involvement to get the best out of this intelligent tool. The paper also addresses broader implications, including ethical concerns about fairness and transparency, the need for updated legal standards for AI use in finance, and the societal impact it could have on employment and skills. Therefore, it calls for interdisciplinary collaboration to maximise AI benefits, while aligning its use with important societal values. To sum up, this study provides valuable insights into the challenges and opportunities of AI in financial reporting, emphasising the need for a balanced approach to ensure an ethical and effective integration of AI in the financial sector. That way, all sorts of stakeholders can benefit from this invention and increase social welfare together. And despite the importance of this paper and its findings, it still has its limitations and as AI continues to evolve and become more common in the future, there will certainly be more room for other research projects into this novel topic. |
| Item Type: | Essay (Master) |
| Faculty: | BMS: Behavioural, Management and Social Sciences |
| Programme: | Business Administration MSc (60644) |
| Link to this item: | https://purl.utwente.nl/essays/102078 |
| Export this item as: | BibTeX EndNote HTML Citation Reference Manager |
Show download statistics for this publication
Show download statistics for this publicationRepository Staff Only: item control page