FRC study finds AI use in UK corporate reporting is cautious and uneven

The Financial Reporting Council published research on July 8 into how UK public interest entities use AI in corporate reporting. The FRC commissioned the work from Lancaster University, with researchers from Loughborough University. It found that generative AI is being used in narrative reporting, while use in the financial statements remains limited. Adoption is controlled, targeted and uneven. Companies are putting AI on lower risk, task-specific work rather than judgement-heavy areas. The research listed trust, data quality and governance controls as the main barriers, alongside legal and reputational risk. It also found that market participants value authenticity alongside accuracy and accountability. The FRC said corporate reporting remains human led. Reported by Ellichipuram Umesh at The Accountant.