Modernising UK Corporate Reporting: The use of AI in corporate reporting

On 7 September 2026, the government published a Consultation on modernising corporate reporting to support long-term economic growth. We have published a series of posts to draw out the key points of the consultation (listed below) and this post focuses on the use of AI in corporate reporting.

Background

In early 2026 the Financial Reporting Council commissioned a survey (The use of Artificial Intelligence Technologies in Corporate Reporting) which received 103 replies from a range of respondents from across FTSE 350, AIM and Small Cap companies as well Public Interest Entities, private non-PIEs and overseas entities. The survey found that 61% of respondents used AI in drafting narrative sections of corporate reports, with interviews revealing that it was largely used for “first draft” activities. 36% of the AI users are also using it to interpret reporting standards and track regulatory changes, with a higher proportion planning to do so in the next twelve months.

As a related issue, this survey also pointed to a possible disconnect in AI use within organisations with it being used widely at a junior level but in a way which is not visible to senior members of the team. This raises an important point around governance of AI use within organisations, relevant to corporate reporting as well as all other aspects of the business.

Where do we go from here?

This is the question the government is asking for views on. It is clear that AI is being widely used within corporate reporting. Some commentators (including Falcon Windsor and EY in recent publications on the subject) have set out principles for using AI in preparing annual reports however the consultation is clear that the government do not want to put in place any specific measures on this at the moment. Rather, the government is now looking to understand the role which AI can play in preparing annual reports and accounts.

The consultation also acknowledges the role that AI plays in helping third parties to review and interpret corporate reporting and anticipates that this use-case will only become more established as AI tools become increasingly widespread and sophisticated.

What should I do now? The government is seeking views on how AI could affect the preparation and use of corporate reporting. If this is an area of interest, you should consider responding to question 50 of the consultation (How do you anticipate new technologies (such as a hypothetical successor to iXBRL or sophisticated AI tools) will change how companies prepare or how investors and creditors will use corporate reporting in their decision making? Please set out any implications this may have for Companies House rules and FRC technical standards.).

How long do I have to reply to the consultation? The consultation closes at 11:59pm on 30 November 2026.

Further information

We have published a short series of updates on other suggestions for key reforms.

• Modernising UK Corporate Reporting: company categories, thresholds and exemptions
• Modernising UK Corporate Reporting: financial and narrative reporting reform
• Modernising UK Corporate Reporting: streamlining the annual report or eroding the value of corporate reporting?

If you would like to discuss this update or any of the others we have published, please speak to you usual Burges Salmon contact, AJ Venter (Partner, Corporate and M&A), Guy Francis (Director, Corporate and M&A), Charlotte Hamilton (Senior Associate, Corporate and M&A) or Nick Graves (Head of the Corporate Department).

It is not clear how to best future-proof the corporate reporting framework given the rapid pace of change around available AI tools.