Market Overview
The Global
Generative AI in Audit Market is expected to reach a value of
USD 111.7 million by the end of 2024, and it is further anticipated to reach a market value of
USD 2,708.5 million by 2033 at a
CAGR of 42.5%.
Auditing assesses the accuracy of financial &non-financial data and the systems recording it. Professional auditors adapt to changing technology. Automation & analytics mark the starting phase towards a GenAI-powered audit, automating mundane tasks to enhance efficiency & quality, which enables auditors to focus on improving their skills & making informed decisions.
The adoption of automation and analytics is gaining momentum among auditors and organizations, marking a foundational step toward a Generative AI (GenAI)-enabled audit landscape. GenAI streamlines repetitive tasks, providing deeper insights and enhancing audit quality and efficiency.
This allows auditors to focus on higher-value activities, such as refining their skills, expertise, and strategic decision-making. A notable application of GenAI is in analyzing contract agreements and identifying atypical terms or clauses that require additional scrutiny.
A survey conducted by KPMG in October 2023 analyzed the impact of GenAI on audit methodologies. The survey included 210 U.S.-based business leaders, primarily VPs and above, within finance-centric functions of organizations generating over $1 billion in annual revenue and employing 500 or more individuals.
Key findings revealed that 52% of respondents believed that increased AI adoption would attract talent to financial reporting, while 55% anticipated AI's transformative impact on the accounting and auditing sectors. Furthermore, 65% of organizations surveyed reported integrating AI into financial reporting processes, with 36% utilizing it extensively. These results highlight the growing influence of GenAI in shaping the future of auditing and financial reporting practices.
Key Takeaways
- The Global Generative AI in Audit Market is expected to grow by 2,596.8 million, at a CAGR of 42.5% during the forecasted period.
- By Technology, the Natural Language Processing (NLP) segment is expected to lead in 2024 & is anticipated to dominate throughout the forecasted period.
- By Application, the Financial Auditing segment is expected to have a lead throughout the forecasted period.
- By End User, the Banking & Finance sector is expected to take the lead as the prominent end-user segment in 2024
- North America is expected to hold a 35.9% share of revenue in the Global Generative AI in Audit Market in 2024.
- Some of the use cases of Generative AI in Audit include fraud detection & simulation, anomaly detection, and more.
Use Cases
- Fraud Detection and Simulation: Generative AI can be used to act in various scenarios of fraudulent activities based on historical data. By training the model on past fraud, it can create synthetic data providing potential fraudulent transactions or patterns, which then can be used by auditors to test the efficiency of their fraud detection algorithms or to train their staff on identifying red flags associated with fraudulent behavior.
- Anomaly Detection: It can assist auditors in recognizing anomalies within large datasets. By learning the typical patterns & structures of the data, the model can create synthetic data points that conform to these patterns.
- Risk Assessment and Scenario Planning: It can also help auditors look into risks by creating many scenarios based on historical data & market trends. By looking into different scenarios through generative models, auditors can gain insights into potential risks & their potential impacts on the audited entity, which can support in development of stronger risk assessment frameworks & contingency plans.
- Narrative Generation for Audit Reports: It can also help assist auditors in drafting audit reports by generating narrative descriptions based on the findings from the audit, which can significantly reduce the time and effort required for report writing while ensuring consistency & accuracy in the documentation process.
Market Dynamic
As accounting technology regulations change, firms majorly turn to generative AI to stay ahead & ensure clients remain well-prepared. Generative AI stands out as a symbol of efficiency in auditing, mainly in the middle of rising audit costs. It proves to be a powerful asset in the financial realm, automating tasks like fulfilling contracts & invoices for irregularities, which not only speeds up audits but also substantially minimizes labor expenses.
However, the complexity of generative models creates challenges, often operating as "black boxes.", which makes it complex to involve their decision-making processes, critical for audit validation & regulatory compliance. Further, these models need advanced training on sensitive client data, raising
cybersecurity concerns. Without strong protections, AI systems could be at risk of cyber-attacks, leading to data breaches and major legal and reputational repercussions.
Driving Factors
Generative AI in Audit Market The Generative AI market in Audit is driven by the need for precise and efficient audit processes. Traditional methods often entail manual data analysis which can take too much time and result in human errors; Generative AI streamlines these processes by automating data extraction, pattern recognition, anomaly detection and speedy analysis of large volumes of financial data quickly which improves accuracy while decreasing fraud risks significantly.
Increasing regulatory complexity also compels organizations to utilize AI powered audit tools in order to comply with complex regulatory requirements; increasing accuracy while productivity further contributes towards Generative AI adoption into this sector sector.
Trending Factors
Integrating Generative Artificial Intelligence with Predictive Analytics and Blockchain technology is an increasingly popular trend in the audit market, utilizing AI powered systems to forecast financial risks, assess compliance probabilities and detect any possible fraud cases.
Combining blockchain with other security measures provides organizations with secure, transparent, and tamper proof audit trails. Organizations also benefit from real time insights and automated verification of transactions that strengthen decision making and trustworthiness.
This convergence of technologies supports smarter auditing practices that reflect the industry's digitization process. As more firms adopt predictive models and blockchain integration, Generative AI becomes an increasing feature in audits shaping its future within this sector.
Restraining Factors
Generative AI auditing presents several unique challenges, such as high implementation costs and data privacy concerns. Deploying Generative AI solutions often requires significant investments in technology, infrastructure and training which may deter smaller firms.
Furthermore, auditing involves handling sensitive financial data that raises concerns over data security regulations such as GDPR; to mitigate risk organizations must implement robust cybersecurity measures while meeting legal compliance regulations such as GDPR to avoid any breach in security.
In response to these hurdles it would be advantageous for the Generative AI market to implement affordable AI solutions and enhanced data protection frameworks so as to increase wider acceptance within audit services market.
Opportunties
Generative AI presents businesses with significant opportunities in real time auditing and continuous monitoring, as they increasingly demand tools that provide instant insights and detect irregularities during operations rather than post mortem. AI powered audit systems enable continuous tracking of transactions, flagging anomalies and ensuring compliance proactively an invaluable capability in sectors like finance, healthcare, and e commerce where regulatory standards are stringent.
Real time auditing aligns with global efforts to provide more transparent and efficient financial reporting, so Generative AI's real time audit capabilities could transform traditional audit practices while opening up new growth prospects in the market.
Research Scope and Analysis
By Technology
Natural Language Processing (NLP) is anticipated to be the leading technology in the Generative AI in the Audit Market in 2024, as its ability to understand, analyzing, and crafting human-like text, is important for inspecting documents, financial reports, & regulatory filings.
NLP's ability makes it easy to dig out meaningful insights from complex, unstructured data, a common challenge in audits. By automating the switch through large volumes of text, NLP greatly improves efficiency, and precision, along with widening the scope of audit tasks.
Despite NLP anticipating the lead,
Machine Learning Algorithms, Predictive Analytics, and Other AI Technologies are also expected to make significant contributions. Machine Learning helps in spotting patterns & anomalies, Predictive Analytics forecasts possible risks & irregularities, while other AI tools add to the data interpretation & decision-making, together enhancing the audit process's depth & effectiveness.
By Application
Financial Auditing is expected to lead the way in the application of Generative AI in Audit in 2024, majorly because financial auditing plays an important role in ensuring accuracy, compliance, & transparency in financial reporting.
Generative AI expands the financial auditing process by using in-depth data analysis, pinpointing irregularities, & providing deeper insights into financial statements. Its integration improves the efficiency & effectiveness of financial audits, allowing auditors to delve deeper into complex financial data, identify potential issues, & ensure the integrity of financial reports.
By End User
In the Generative AI in Audit Market, the Banking & Finance sector is expected to take the lead as the primary end-user segment in 2024 by capturing a significant revenue share, as it heavily depends on Generative AI to handle complex financial data, ensure compliance to regulations, and enhance the efficiency & accuracy of audits. With its major transaction volumes & stringent regulatory requirements, the Banking &Finance sector finds advanced tools like AI indispensable for conducting audits efficiently.
Further, other industries like Healthcare, Manufacturing, Retail, and others also use Generative AI in their audit processes. Healthcare uses AI for patient data & billing audits, manufacturing for process & compliance audits, while the retail sector uses it for financial &inventory audits, as each industry benefits from AI's ability to manage large datasets & offer insights.
The Generative AI in Audit Market Report is segmented on the basis of the following
By Technology
- Natural Language Processing (NLP)
- Machine Learning Algorithms
- Predictive Analytics
- Others
By Application
- Financial Auditing
- Compliance Auditing
- Risk Assessment
- Fraud Detection
By End User
- Banking & Finance
- Manufacturing
- Retail
- Others
Regional Analysis
North America is expected to lead the Generative AI in Audit market, by capturing a
35.9% share in 2024, which is driven by the region's strong financial sector & strict regulations. The US and Canada are home to many global accounting firms and corporations, that demand high-end compliance & audit accuracy.
Generative AI helps boost efficiency, cut errors, and handle the growing volume of financial transactions. Further, the region's tech expertise & renowned AI research institutions support innovation and adoption in auditing.
Further, the Asia-Pacific region is anticipated to experience rapid market growth due to its expanding economy & digital shift, as countries like China, Japan, & India experience growth in business activity & support digital financial practices. The need for accurate auditing to support this growth drives AI usage. With a focus on innovation & financial process enhancement.
By Region
North America
Europe
- Germany
- The U.K.
- France
- Italy
- Russia
- Spain
- Benelux
- Nordic
- Rest of Europe
Asia-Pacific
- China
- Japan
- South Korea
- India
- ANZ
- ASEAN
- Rest of Asia-Pacific
Latin America
- Brazil
- Mexico
- Argentina
- Colombia
- Rest of Latin America
Middle East & Africa
- Saudi Arabia
- UAE
- South Africa
- Israel
- Egypt
- Rest of MEA
The global generative AI in the Audit Market is experiencing strong competition among many players. Companies look to innovate & provide solutions that improve efficiency &accuracy in auditing processes. Key focus areas include automation, anomaly detection, & data analysis. With the growth in the adoption of AI technologies in auditing, players are constantly looking to meet the growing demands of the market.
Some of the prominent players in the global Generative AI in Audit Market are:
- Deloitte
- PwC
- KPMG
- IBM Corp
- SAP SE
- NVIDIA
- Hitachi
- BlackLine
- UiPath Inc
- Workday
- Other Key Players
Recent Developments
- In November 2023, AWS Audit Manager unveiled the first version of AWS best practices framework for generative AI that automates verification for Amazon Bedrock, which can harness the full potential of generative AI while addressing concerns around ethical & responsible use.
- In October 2023, Deloitte unveiled the development and deployment of "DARTbot," an internal chatbot developed by advanced Generative Artificial Intelligence, as it is capable of generating intelligent responses & providing valuable insights to support nearly 18 thousand of Deloitte's U.S. Audit & Assurance professionals in their daily tasks & decision-making processes.
- In July 2023, KPMG & Microsoft announced a major expansion of their global relationship which will allow KPMG professionals to leverage the latest developments in artificial intelligence (AI) across many business areas. As part of a multi-billion-dollar collaboration, KPMG professionals will pilot Microsoft Cloud and Azure OpenAI Service capabilities for five years.
- In May 2023, PwC plans to focus on tapping generative AI & other emerging technologies to innovate key areas like audits, as they are investing an additional USD 1 billion into its auditing services, an investment, which will help the company to achieve transformation in the way it delivers its audit work and the technology that highlights the delivery.
- In April 2023, Deloitte launched a new practice designed to assist clients control the power of Generative AI & Foundation Models to exponentially improve productivity & accelerate the pace of business innovation. The new practice integrates world-class services, AI talent, and deep industry experience, which would design their Generative AI strategies & use the disruptive new technology to build innovative AI-fueled applications.
Report Details
| Report Characteristics |
| Market Size (2024) |
USD 111.7 Mn |
| Forecast Value (2033) |
USD 2,708.5 Mn |
| CAGR (2024-2033) |
42.5% |
| Historical Data |
2018 – 2023 |
| Forecast Data |
2024 – 2033 |
| Base Year |
2023 |
| Estimate Year |
2024 |
| Report Coverage |
Market Revenue Estimation, Market Dynamics, Competitive Landscape, Growth Factors and etc. |
| Segments Covered |
By Technology (Natural Language Processing (NLP),
Machine Learning Algorithms, Predictive Analytics,
and Others), By Application (Financial Auditing,
Compliance Auditing, Risk Assessment, and Fraud
Detection), By End User (Banking & Finance,
Manufacturing, Retail, and Others) |
| Regional Coverage |
North America – The US and Canada; Europe – Germany, The UK, France, Russia, Spain, Italy, Benelux, Nordic, & Rest of Europe; Asia- Pacific– China, Japan, South Korea, India, ANZ, ASEAN, Rest of APAC; Latin America – Brazil, Mexico, Argentina, Colombia, Rest of Latin America; Middle East & Africa – Saudi Arabia, UAE, South Africa, Turkey, Egypt, Israel, & Rest of MEA
|
| Prominent Players |
Deloitte, PwC, KPMG, IBM Corp, SAP SE, NVIDIA,
Hitachi, BlackLine, UiPath Inc, Workday, and Other
Key Players |
| Purchase Options |
We have three licenses to opt for: Single User License (Limited to 1 user), Multi-User License (Up to 5 Users), and Corporate Use License (Unlimited User) along with free report customization equivalent to 0 analyst working days, 3 analysts working days and 5 analysts working days respectively. |
Frequently Asked Questions
The Global Generative AI in Audit Market size is estimated to have a value of USD 111.7 million in 2024
and is expected to reach USD 2,708.5 million by the end of 2033.
North America is expected to have the largest market share in the Global Generative AI in Audit Market
with a share of about 35.9% in 2024.
Some of the major key players in the Global Generative AI in Audit Market are Deloitte, PwC, KPMG, and
many others.
The market is growing at a CAGR of 42.5 percent over the forecasted period.