Pwc Australia is currently trialling its new AI-powered audit software with five local clients. This is part of a $1.5 billion global initiative intended to automate more elements of the corporate audit process. While the system greatly accelerates tasks such as data gathering and testing, it still depends on skilled auditors to review and confirm results, meaning human input remains vital. Due to high initial investment, client discounts are not on offer at this stage.
This move places PwC into a global technology race alongside Deloitte, KPMG and EY. These firms are also adopting artificial intelligence to boost audit quality, scale up data analysis and identify risks more efficiently than traditional methods allow. In Australia, PwC auditors are now working alongside AI agents to carry out more than 150 processes. The firm aims to roll out the technology to all clients by 2028.
Pwc reports that the software significantly reduces the time needed for certain audit tasks. For example, validating a listed company's financial statements, previously a one to two day job, can now be completed in under an hour with just 30 minutes of setup. The system quickly sorts and compares data such as bank balances or loan agreements, though auditors still manually investigate discrepancies to confirm accuracy.
The main auditing regulatory board has weighed in, saying AI does not replace human judgement. While AI increases efficiency, auditors must direct the output, compare AI findings with original documents and stay alert to possible errors or false outputs. These include so-called "AI hallucinations" where the system produces realistic yet incorrect information.
In the long run, greater adoption could change what audits deliver to clients and investors, with the potential for more frequent and even real-time financial insights. For now, however, the main challenge remains building trust and transparency around how AI systems operate. Firms are easing concerns by keeping sensitive data in secure environments and ensuring every decision made by an AI tool is auditable by a human.
Although AI-enabled audits save time, PwC states they are currently more expensive due to infrastructure, development and licensing costs. This means that while quality and speed are improving, clients should not expect immediate cost reductions. However, PwC anticipates that future pricing will evolve in response to market demand and efficiency gains as the system scales.
