Introduction
The world of finance and reporting is changing not just because of new standards, but because of new tools. AI and automation are increasingly making their way into accounting processes. But here’s the key question: When an entity implements IFRS, can AI handle it all alone? The short answer: no, it can’t.
While AI can crunch data, automate journals, and flag anomalies, IFRS is not a checklist of entries it’s a framework of judgment, disclosure, and transparency. Combine that with the latest insights from regulators and firms, and you see a clear pattern: AI can assist, but human expertise is still central.
A Snapshot of Where We Are
A recent guide from KPMG states that while “intelligent tools” are rapidly entering the financial reporting realm, firms must establish entity-level controls, process controls and detailed governance before relying on them.
In a 2025 review, the Financial Reporting Council (UK) found that major audit firms were not formally assessing how their AI tools impacted audit qualitydespite wide usage.
These developments suggest that when IFRS and AI tools converge, the challenge is not machine vs human, it’s alignment of process, control and interpretation.
Where IFRS and AI Overlap And Where They Don’t
Here are some places where AI adds value to IFRS-based reporting and where it falls short:
Where AI helps:
- Automating data extraction and journal-entry generation (freeing teams from manual posting)
- Identifying unusual patterns, anomalies or possible material misstatements in large data sets
- Speeding up close-process and initial reporting drafts
Where AI still needs help:
Applying professional judgment: IFRS often requires interpreting “significant estimate”, “material”, “substance over form” etc. AI may flag but cannot conclude.
Ensuring robust disclosures and transparent narratives: AI may draft text, but selecting what to disclose and how much context to provide is still a human exercise.
Governance, controls and ethics: The technology must be embedded within an environment of control, review and accountability not deployed as a “set-and-forget” tool.
What Firms Need to Do Right Now
If you’re advising clients or building your practice around IFRS and AI here’s what you should focus on:
- Train your team for hybrid workflows: People must know both IFRS concepts and how the tech supports them.
- Disclose the use of tools (where relevant): Regulators and auditors now want transparency as the KPMG and FRC reviews highlight.
- Use AI to enhance not replace the story behind the numbers: Financial reports under IFRS aren’t just totals, they’re narratives of position, performance, risks and uncertainties.
Conclusion
Piloting AI in accounting is exciting but the promise of IFRS is bigger than automation alone. Tools can accelerate, detect, assist but they cannot entirely take over the accounting lens of judgment, transparency and integrity.
So the next time a client says, Let’s just plug in the latest AI tool and interpret IFRS that way, your answer should be clear: Yes, let’s use the tools but only after the standards, controls and disclosures are firmly in place.
Because at the end of the day when AI meets IFRS it’s not machine vs man. It’s a machine plus method.
