Research Services into the use of artificial intelligence and other disruptive technologies in corporate reporting

The Financial Reporting Council (FRC) regulates auditors, accountants and actuaries and sets the UK's Corporate Governance and Stewardship Codes. As the Competent Authority for audit in the UK, we set auditing and ethical standards and monitor and enforce audit quality.

The purpose of the FRC is to serve the public interest and support UK economic growth by upholding high standards of corporate governance, corporate reporting, audit and actuarial work.

Companies are using artificial intelligence (AI) and other disruptive technologies within their business operations. However, there is currently a limited understanding of, and evidence on, their use of AI and other disruptive technologies in the production of narrative/financial information in corporate reports ('corporate reporting').

The FRC is seeking research services into the use of artificial intelligence and other disruptive technologies in corporate reporting. This research project will gather evidence about the use of AI and other disruptive technologies in corporate reporting to inform FRC regulatory practice and policy.

The research project will answer the following research questions:

(1). What specific AI and other disruptive technologies are most commonly used in corporate reporting, and how are they being used?

(2). How is the use of AI and other disruptive technologies in corporate reporting influencing changes to governance and audit processes?

(3). How do companies believe their stakeholders perceive the reliability and transparency of corporate reports prepared with the use of AI?

The research population will be companies that meet the UK Public Interest Entity (PIE) definition, i.e. those with transferable securities listed on a UK-regulated market, credit institutions, and insurance undertakings, and their finance and corporate reporting teams.