Late last year, EY published its 2024 Global Corporate Reporting Survey, which found that 96% of finance leaders were concerned about the integrity and reliability of nonfinancial data, and pointed to the promise of AI in restoring trust to corporate reporting.
Despite its growing importance for stakeholders, many believed this data lacked the robustness for informed decision-making. Of the 2,000 finance leaders and 815 institutional investors surveyed, 39% identified varying data formats as an issue, while 35% noted inconsistencies. These challenges undermined confidence in sustainability reporting and hindered progress toward global goals.
Investor scrutiny of nonfinancial performance has intensified. Of the finance leaders surveyed, 69% reported an increase in investor queries over the past two years, and more than two-thirds noted growing investor interest in nonfinancial drivers of value.
Over half of investors stated that AI tools capable of assessing the credibility and accuracy of company data disclosures would be "very useful." Additionally, 57% of investors believed AI could enhance corporate reporting by detecting inconsistencies and streamlining data validation, offering finance teams a powerful solution to reporting challenges.
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