AI-Driven Industry 4.0 : Enhancing Auditing, Corporate Governance, and Financial Performance

Ahmed, Amanj Mohamed and Hágen, István Zsombor (2026) AI-Driven Industry 4.0 : Enhancing Auditing, Corporate Governance, and Financial Performance. REGIONAL AND BUSINESS STUDIES, 18 (1). pp. 175-188. ISSN 2061-2311

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Abstract

Industry 4.0, driven by artificial intelligence and digital technologies, has rapidly transformed corporate auditing, governance, and overall firm performance. This paper explores how AI-driven Industry 4.0 influences audit efficiency, enhances corporate governance, and improves business performance. By leveraging AI, blockchain technology, big data analytics, and automation, organizations can improve risk assessment, optimize processes, and support better decision-making. These technologies enhance accountability and control efficiency while improving fraud detection, ensuring data privacy, and reducing auditing costs. The study further examines how Industry 4.0 reshapes corporate governance by requiring digitally competent directors, more active shareholder participation, and redefined board roles. Moreover, Industry 4.0-related innovations, such as machine learning and the Internet of Things (IoT), contribute to competitive advantage, market expansion, and financial performance through process optimization, supply chain integration, and enhanced customer experiences. This study is based on a conceptual and integrative literature review, synthesizing existing research to develop a comprehensive understanding of the relationship between Industry 4.0, auditing, governance, and firm performance. The findings highlight the critical role of AI in shaping corporate auditing, governance, and financial sustainability, providing valuable insights for policymakers, business leaders, and auditors navigating digital transformation.

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