AI campaign: the responsible use of AI in reporting
Here you can find out all about Claire’s campaign for the responsible use of AI in reporting, and download the guidance for Boards and management on approach and disclosure. You can also find out about our research project which aims to develop recommendations for how AI tools can be used appropriately and responsibly in reporting – aiming to publish later in 2025.
“Truth and accountability are the bedrock of corporate reporting. Early in 2023, when ChatGPT started to gain traction, I realised that the wholesale use of AI, particularly large language model systems (LLMs) would raise issues for the accuracy of corporate reporting in general; and for directors’ duties in terms of ensuring that reporting is fair, balanced and understandable.
“So I started my campaign, first for regulation including submitting a proposal to the Government consultation. Then, with the input of 40+ corporates, advisors and investors (to whom enormous thanks!), I turned that into guidance, published on 22 November 2023. With AI tools starting to be adopted inside companies, and many changes coming to reporting, we realised more practical recommendations would be helpful for everyone. As long as, of course, any recommendations support the purpose of reporting and are based on how people are actually likely to be using these tools!”
Launch webinar
Claire discusses the 2023 guidance with Fiona Cuttell, Assistant Company Secretary and Head of Non-Financial Reporting at FTSE 100 Haleon; Neil Murphy, then CEO of FTSE 250 Bytes Technology Group, which sells AI systems to corporates and the public sector; and Charlotte Lush then of ShareAction, representing the investor view.
FT’s The Banker covers our campaign – again!
16 April 2024
In February we reported that Silvia Pavoni, editor of the FT’s international financial affairs publication The Banker, had highlighted our campaign and research in a piece entitled The risks of ‘hallucinating’ financial reports. We’re delighted to note that we’ve made the news again, in Silvia’s latest editorial Banking, journalism and reasoning AI. Focusing on the idea that ‘reasoning AI’ poses an existential threat to banking professionals and analysts – an idea Claire explores in the context of corporate reporting – Silvia also mentions that EFRAG, the European Financial Reporting Advisory Group, invited Claire to discuss AI and its responsible use in reporting with their staff. For a campaign that’s just beginning to gain traction in the sector, recognition and support from such an august source is gold dust, and very much appreciated.
FT’s The Banker covers our campaign
06 February 2024
A ringing endorsement this week from The Banker, the FT’s international financial affairs publication. In an editorial titled The risks of ‘hallucinating’ financial reports, editor Silvia Pavoni mentions KPMG’s research in the US on the use of AI – then goes on to say: ‘In the UK, a far smaller consultancy than KPMG has been sounding the alarm bell. Claire Bodanis, the founder of Falcon Windsor, a minute company offering corporate reporting services, has been knocking at the door of the body regulating auditors and accountants — the Financial Reporting Council — asking for intervention.’ She also refers to our academic research with Imperial College and Insig AI (see below).
We’ll happily take ‘minute’. As Insig AI’s ESG Research Director Diana Rose put it: ‘Minute but mighty’!
2024/25 research project with Insig AI: research complete; recommendations coming!
Claire says: ‘After a busy summer and early autumn talking to corporates and investors, we have some fantastic insights into how people are starting to use AI tools inside companies, and what investors think about the potential impact this may have on reporting. We also have some great data about the state of play from Insig AI’s analysis of all FTSE company reports.
‘As of mid-January 2025, we’re now developing our practical recommendations for how AI tools can be used thoughtfully and usefully in reporting. Not forgetting of course what types of tools shouldn't be used and when/where.
‘We’re all enormously grateful to everyone who took part, and to the team at Imperial College London who worked with us on our initial research plan, and look forward to publishing our recommendations in the next few months. If you’re interested in how we’re getting on, please do get in touch – claire@falconwindsor.com.‘
Summer 2024: The team from FW and Insig AI gets our research project under way.
December 2024: A very analogue approach to developing recommendations from our research! Turns out the piano was an ideal post-it wall in my sitting room... Thanks to Miti and Simon (pictured) from the FW team and Diana and Steve (not pictured, sorry) from Insig AI for a fascinating day – we look forward to publishing our ideas soon!
The campaign in blogs
On the campaign trail
13 June 2024
Going head to head with Microsoft on a panel at the Center for Corporate Reporting’s annual conference
22 May 2024
Presentation for Investor Forum members
24 April 2024
Panellist at the Chartered Governance Institute UK & Ireland’s event – AI: What Corporate Governance Professionals and Boards need to know
12 April 2024
FT’s The Banker talks to Claire about the potential impact of ‘reasoning AI’, announced earlier in the week by OpenAI and Meta – Banking, journalism and reasoning AI
10 April 2024
Presentation to the European Financial Reporting Advisory Group, or EFRAG, key advisor to the European Commission on corporate reporting
8 April 2024
Presentation to the Institute of Directors’ quarterly update meeting for Chartered Directors
05 March 2024
Presentation to the UK branch of the Corporate Reporting Users’ Forum on the responsible use of AI in reporting
06 February 2024
FT’s The Banker covers our campaign - The risks of ‘hallucinating’ financial reports
24 November 2023
Presentation to The-Pensions-Net-Work
23 November 2023
Headlined in the Sustainable Views at Financial Times daily briefing - 'Should ChatGPT do your ESG reporting?'
23 November 2023
Zoom chat with students at the University of Oulu
25 September 2023
Panellist for The-Women’s-Insurance-Net-Work
10 July 2023
Panellist for the Institute and Faculty of Actuaries
Our response to the FRC consultation – opportunities for future digital reporting.