INTERNATIONAL JOURNAL OF RESEARCH CULTURE SOCIETY

Abstract:    Generative AI is transforming financial reporting and decision-making by automating complex tasks, enhancing accuracy, and enabling real-time insights, yet it introduces risks like hallucinations and biases that demand robust governance. This paper examines these dual impacts through empirical studies and industry cases.

Recent advancements in tools like ChatGPT and custom models streamline financial statement preparation, expense categorization, and narrative generation, reducing errors and compliance burdens while improving auditor judgment on issues such as speak-up rates in remote audits. In decision-making, AI excels at personalized forecasts, fraud detection, and portfolio optimization, shifting professionals toward strategic roles.

However, challenges persist: AI's lower skepticism in critical audits like going-concern assessments risks quality degradation, and agent herding could destabilize markets. Empirical evidence from auditor experiments and surveys highlights benefits in analytics but warns of over-reliance.