ADOPTION OF ARTIFICIAL INTELLIGENCE IN ACCOUNTING AND ITS IMPACT ON FINANCIAL REPORTING QUALITY AND TRANSPARENCY

Abstract

The rapid advancement of Artificial Intelligence (AI) technologies is transforming traditional accounting practices and significantly influencing financial reporting processes across organizations. AI-driven systems are increasingly used to automate accounting tasks, improve data accuracy, and enhance transparency in financial information. However, empirical research examining the impact of AI adoption on financial reporting quality and transparency remains limited, particularly in emerging economies. Therefore, this study aims to examine the relationship between Artificial Intelligence adoption in accounting and its impact on financial reporting quality and transparency. The study adopts a quantitative research approach and collects primary data from accounting professionals and finance employees working in organizations that utilize AI-based accounting systems. A structured questionnaire was used to gather responses, and the data were analyzed using statistical techniques including descriptive statistics, reliability analysis, correlation, and regression analysis with the help of IBM SPSS Statistics and SmartPLS. The results of the study reveal that the adoption of Artificial Intelligence in accounting has a significant positive impact on financial reporting quality and transparency. AI technologies help reduce manual errors, improve data processing efficiency, and enhance the reliability and timeliness of financial information. The findings indicate that organizations implementing AI-driven accounting systems experience improved financial reporting practices and greater transparency in financial disclosures. This study contributes to the existing literature by providing empirical evidence on the role of Artificial Intelligence in improving accounting practices and financial reporting outcomes. The findings also offer valuable insights for organizations, policymakers, and accounting professionals regarding the effective integration of AI technologies in modern accounting systems.