The Role of Artificial Intelligence in Enhancing Financial Reporting and Regulatory Compliance

Abstract

The integration of Artificial Intelligence (AI) in financial systems is transforming the way organizations manage financial reporting and ensure regulatory compliance. This study investigates the role of AI in enhancing the accuracy, efficiency, and timeliness of financial reporting, while also strengthening regulatory compliance frameworks. Based on primary data collected from 100 financial professionals in Bangalore, the research provides empirical insights into the adoption, benefits, and challenges associated with AI in finance. Findings suggest that AI significantly contributes to data accuracy, anomaly detection, and automation of compliance tasks, although concerns around data privacy, system integration, and high implementation costs remain. The study concludes with recommendations for organizations aiming to leverage AI for financial governance.