1 McKinsey and Company, Texas, USA.
2 Department of Finance, Hult International Business School, Boston MA.
3 Department of Finance, Hult International Business School Boston.
4 Focal Point Associates and Company, Lagos, Nigeria.
5 Financial Technology and Analytics Department, Naveen Jindal School of Management, Dallas, Texas, USA.
Review Article
World Journal of Advanced Research and Reviews, 2024, 21(01), 172–188
Received on 23 November 2023; revised on 30 December 2023; accepted on 01 January 2024
This paper delves into the transformative impact of Artificial Intelligence (AI) on traditional accounting practices, examining its role in reshaping financial reporting, auditing, and decision-making processes. The study explores the evolution from manual, labor-intensive accounting methods to sophisticated, AI-driven approaches by setting it against the backdrop of rapid technological advancements. The aim is to critically assess how AI integration is redefining the landscape of accounting, highlighting both the opportunities and challenges it presents.
The study meticulously analyzes peer-reviewed articles, case studies, and industry reports from the last decade by employing a systematic literature review and bibliometric analysis. This methodology ensures a comprehensive understanding of AI's integration in accounting, its effectiveness in enhancing accuracy and efficiency, and the strategic implications for accounting professionals and firms.
The findings reveal that AI significantly improves the accuracy and efficiency of financial reporting, automating routine tasks and enabling predictive analytics for strategic decision-making. However, challenges such as the need for skilled personnel adept in AI, data privacy concerns, and the high costs of AI integration are notable. The study also highlights the resistance to change as a significant barrier to AI adoption in accounting practices.
In conclusion, the paper recommends a balanced approach to AI integration in accounting, emphasizing the need for continuous learning, adaptation, and strategic planning. It advocates for investment in training and development to build AI competency and stresses the importance of ethical considerations and regulatory compliance. The study concludes that while AI presents challenges, its potential to revolutionize accounting practices is undeniable, offering new avenues for growth and innovation in the digital era.
Artificial Intelligence; Accounting Practices; Financial Reporting; Technological Advancements; Systematic Literature Review.
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Beryl Odonkor, Simon Kaggwa, Prisca Ugomma Uwaoma, Azeez Olanipekun Hassan and Oluwatoyin Ajoke Farayola. The impact of AI on accounting practices: A review: Exploring how artificial intelligence is transforming traditional accounting methods and financial reporting. World Journal of Advanced Research and Reviews, 2024, 21(1), 172-188. Article DOI: https://doi.org/10.30574/wjarr.2024.21.1.2721