Exploring the Impact of Generative AI on Financial Planning and Analysis: Assessing Efficiency, Accuracy and its Implication with EU’S CSRD Regulation

Abstract

The finance and accounting sector is under constant pressure to adapt to technological advancements while maintaining accuracy and compliance with regulatory standards. With the integration of AI like ChatGPT and Microsoft Copilot, a new horizon opens up, offering possibilities for enhanced efficiency and decision-making accuracy. However, this integration presents a research problem: the need to measure and validate the accuracy of these AI tools in calculating financial ratios to analyze the financial health of a company. Given the fact that the year of 2024 is where EU companies are finally implementing EU’s CSRD, there will be implications with financial planning and analysis.