Beyond adoption: Supporting AI-informed financial judgments

AI is moving deeper into the financial estimates and judgments that shape reported results and undergo external audit review. From forecasts and tax calculations to valuations and impairment assessments, finance teams are applying AI in areas involving estimation uncertainty, consequential assumptions and management judgment.

The 2026 Audit Innovation survey reveals an important tension: AI adoption and investment are advancing faster than the governance, documentation and evidence needed to fully support AI-assisted outputs. As AI becomes more embedded in financial reporting, confidence will increasingly depend on whether organizations can clearly explain how conclusions were reached, demonstrate effective oversight and combine technology with professional judgment.

BDO’s third annual Audit Innovation Survey polled 200 finance leaders, exploring how AI is reshaping finance and the audit, including:

  • How AI is influencing financial estimates and judgments
  • The gap between AI adoption and organizational readiness
  • The governance, documentation and evidence needed to support AI-assisted outputs
  • How finance leaders expect AI to strengthen audit quality
  • The foundations organizations need to prepare for more continuous auditing

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Here’s a glimpse into what finance leaders have to say:

99%

of finance leaders report that their organization uses AI to generate or inform at least one financial estimate or judgment reviewed by its external auditor. 

95%

say they are very or somewhat prepared to explain AI-generated estimates, forecasts and other financial information and provide supporting evidence to their external auditor. 

49%

say they have the documentation and processes needed to explain and substantiate all AI-assisted outputs. 

Nearly two-thirds

believe AI can make audits more rigorous by reducing human error and helping drive audit quality. 

86%

are concerned that overreliance on AI could reduce human judgment, reinforcing the expectation that technology should complement auditor expertise rather than replace it.