La IA anuncia el fin de la inflación de los honorarios de auditoría

The news that artificial intelligence (AI) may signal the end of predictable increases in audit fees is making waves. In the past year, company audit invoices rose by less than 2%, almost matching inflation rates. Typically, these invoices have climbed between 4% and 5% annually. However, the past year saw a more modest rise, in line with inflation.

Several factors contribute to this trend. Stricter regulations implemented in recent years have also impacted the industry. During the past five years, fees paid by London's top 100 listed companies increased by 75%. Despite this growth, audit fees are known to be volatile. The constant ebb and flow of operations and expansions between clients generate more work, often at a more complex level.

For instance, pharmaceutical giant AstraZeneca, the largest UK company by market capitalization, spent $34 million (29 million euros) on audit fees and related services last year, marking a more than 6% increase. Meanwhile, the mid-cap sector is experiencing a surge in M&A activity, which, in turn, fuels audit fees. Companies like Bodycote, Gamma Communications, and Capricorn Energy announced acquisitions this week.

On the flip side, some firms are downsizing, shedding personnel, assets, divisions, or even entire units, thus decreasing the workload for auditors. Following the sale of its banking unit, discount retailer Sainsbury's reduced its audit fees last fiscal year by 25% compared to the previous year. Likewise, Diageo, the maker of Guinness and Johnnie Walker whiskey, paid 15% less in audit fees than before.

Overall, one-third of FTSE 350 companies cut their invoices last year. For accountants and professionals in other fields, the challenge lies in convincing clients to accept lower fees due to the growing role of AI. This includes accountants themselves, as they are also consumers of these services. Audit firm KPMG International recently reported a 14% reduction in fees paid to its own auditor, Grant Thornton UK, citing cost savings from technology.

Despite this progress, the benefits of AI might take time to materialize. On one hand, integrating AI into existing systems, coupled with cybersecurity and regulatory compliance, could initially raise costs. Moreover, the widely accepted notion that human intervention remains crucial, especially in a critical area like auditing for error detection, is likely to hold true.

Bill Gates, co-founder of Microsoft, once said that the PC took 20 years to significantly impact workplaces. Similarly, AI is expected to make its impact much faster, but for many users, it remains in its experimental phase. Undoubtedly, the future holds pressure on reducing audit fees. Consulting firms are replacing some of their billable hours with outcome-based or value-added pricing, and measuring and defining results is straightforward for accountants.

Start-ups are adopting this approach from the outset. It is unlikely that the auditors' own finances will improve significantly. The Financial Times Limited holds the copyright for this translation, and Financial Times Limited is not responsible for its accuracy.