Artificial Intelligence in Accounting: Revolutionizing Financial Management in the Digital Landscape
Abstract
The use of artificial intelligence (AI) builds up the accounting system efficiency, increases data entry accuracy and simplifying the accounting process. The aim of the study is to prove the effectiveness of modern AI-based information technologies (IT) in accounting and the possibilities of AI application for process optimization. The effectiveness and efficiency were proven using comparison methods, statistical analysis, graphical cause-and-effect analysis, modelling using the linear regression method. The assessment was carried out using quantitative and qualitative indicators of labour productivity and process optimization. The results of the study showed that 18 accounting department employees on average are needed to perform standard transactions in the companies studied without AI. With AI, 1 person can handle such a volume of work. Accordingly, with the implementation of AI, the average reduction in Transaction Processing Time per Week is 696.26 hours. Regression analysis confirmed that the implementation of AI increases the companies’ productivity in terms of Transaction Processing Time. Reducing the Data Processing Complexity by one unit leads to a reduction in transaction processing time by 592.69 seconds. Each percent increase in Data Entry Accuracy contributes to a reduction in processing time by 5135.51 seconds. The prospects for implementing AI in accounting include further improving algorithms to increase the accuracy and speed of transaction processing, optimizing material and time consumed.
References
[1] Abdullah, A.A. H., and Almaqtari, Faozi A. (2024). The impact of artificial intelligence and Industry 4.0 on transforming accounting and auditing practices. Journal of Open Innovation: Technology, Market, and Complexity, 10(1): 100218. DOI: https://doi.org/10.1016/j.joitmc.2024.100218
[2] Al-Okaily, Manaf, Alsmadi, Ayman Abdalmajeed. (2024). The role of metaverse and blockchain in enhancing digital Islamic finance: Empirical perspective. Journal of Islamic Marketing: 1-15. DOI:https://doi.org/10.1108/JIMA-11-2023-0369
[3] Bakarich, K. M., and O'Brien, P. E. (2021). The robots are coming… but aren't here yet: The use of artificial intelligence technologies in the public accounting profession. Journal of Emerging Technologies in Accounting, 18(1): 27-43. DOI: https://doi.org/10.2308/JETA-19-11-20-47
[4] Benko, Mykola, Moskalyuk, Hanna. (2022). Accounting and management reporting in the context of globalization and digitalization: innovations and challenges. In: M. A. Goldenblat (ed.) Державне управління та адміністрування, сфера обслуговування, економіка та міжнародні відносини як рушійні сили економічного зростання держав XXI століття, pp. 1-18. Vinnytsia: European Scientific Platform. DOI:https://doi.org/10.36074/paaaseeirdfegcc.ed-2.07 (in Ukrainian).
[5] Bilous, O., and Kundeus, O. (2023). Transformation of accounting in the digital economy. Galician economic journal, 83(4): 56-61. DOI: https://doi.org/10.33108/galicianvisnyk_tntu2023.04.056 (in Ukrainian).
[6] Brukhansky, R., and Spilnyk, I. (2020). Digital accounting: concepts, roots and current discourse. The Institute of Accounting, Control and Analysis in the Globalization Circumstances, 3(4): 7-20 (in Ukrainian)
[7] Butynets, F. F., Ivakhnenkov, S. V., Davydiuk, T. V., and Shakhraychuk, T. V. (2022). Accounting Information Systems. ZHITI. (in Ukrainian).
[8] Cho, O.-H. (2024). Analysis of the impact of artificial intelligence applications on the development of accounting industry. Nanotechnology Perceptions, 20(S1): 74-83. DOI: https://doi.org/10.62441/nano-ntp.vi.390
[9] Damerji, H., and Salimi, A. (2021). Mediating effect of use perceptions on technology readiness and adoption of artificial intelligence in accounting. Accounting Education, 30(2): 107-130. DOI:https://doi.org/10.1080/09639284.2021.1872035
[10] Emetaram, E., and Uchime, H. N. (2021). Impact of Artificial Intelligence (AI) on Accountancy Profession. Journal of Accounting and Financial Management, 7(2): 15-25. Available at: https://www.iiardjournals.org/get/JAFM/VOL.%207%20NO.%201%202021/Impact%20of%20Artificial%20Intelligence.pdf
[11] Gonçalves, M. J. A., et al. (2022). The future of accounting: How will digital transformation impact the sector?, Informatics, 9(1): 19. DOI: https://doi.org/10.3390/informatics9010019
[12] Gupta, M., et al. (2021). Application of fuzzy logic data analysis method for business development. Lecture Notes in Networks and Systems, 194: 75-93. DOI: https://doi.org/10.1007/978-3-030-69221-6_7
[13] Han, H., et al. (2023). Accounting and auditing with blockchain technology and artificial Intelligence: A literature review. International Journal of Accounting Information Systems, 48: 100598. DOI:https://doi.org/10.1016/j.accinf.2022.100598
[14] Hasan, A.R. (2021). Artificial intelligence (AI) in accounting & auditing: A literature review. Open Journal of Business and Management, 10(1): 440-465. DOI: https://doi.org/10.4236/ojbm.2022.101026
[15] Kulynych, M., Shvorak, A., and Zhilenko, L. (2020). Implementation of digital literacy under conditions of the future changes in accountant profession. Economic journal of Lesya Ukrainka Volyn National University, 1: 216-224. DOI: https://doi.org/10.29038/24114014-2020-01-216-224 (in Ukrainian)..
[16] Leitner-Hanetseder, S., et al. (2021). A profession in transition: Actors, tasks and roles in AI-based accounting. Journal of Applied Accounting Research, 22(3): 539-556. DOI: https://doi.org/10.1108/JAAR-10-2020-0201
[17] Lelyk, L., et al. (2022). An integrated analysis of enterprise economy security. Decision Science Letters, 11(3): 299-310. DOI: https://doi.org/10.5267/j.dsl.2022.2.003
[18] Lysenko, S., et al. (2024). Global cybersecurity: Harmonising international standards and cooperation. Multidisciplinary Reviews, 7: 2024spe021. DOI: https://doi.org/10.31893/multirev.2024spe021
[19] Megits, N., et al. (2022). The «five-helix» model is an effective way to develop business in industry 4.0 of selected countries. Journal of Eastern European and Central Asian Research, 9(2): 357-368. DOI:https://doi.org/10.15549/jeecar.v9i2.920
[20] Nikonenko, U., et al. (2022). Assessing the policy of attracting investments in the main sectors of the economy in the context of introducing aspects of industry 4.0. International Journal of Sustainable Development and Planning, 17(2): 497-505. DOI: https://doi.org/10.18280/ijsdp.170214
[21] Nóbrega, V., et al. (2023). The impact of artificial intelligence in accounting: Application in SMEs. International Journal of Electronic Finance, 12(2): 192-214. DOI: https://doi.org/10.1504/IJEF.2023.129923
[22] Pilevych, D. (2020). Transformation of the accounting system in the conditions of digital technologies development. Problems and Prospects of Economics and Management, 3(23): 149–157. Available at: http://ppeu.stu.cn.ua/article/view/224553 (in Ukrainian).
[23] Pravdiuk, N., Obniavko, M., and Vasylyna, A. (2022). Implementation of innovative technologies in the accounting system: Global experience and prospects of Ukraine. Efektyvna Ekonomika, 11: 32-54. DOI:http://doi.org/10.32702/2307-2105.2022.11.8 (in Ukrainian).
[24] Rane, N. (2023). Role and challenges of ChatGPT and similar generative artificial intelligence in finance and accounting. Available at: https://ssrn.com/abstract=4603206 DOI: https://dx.doi.org/10.2139/ssrn.4603206
[25] Riinawati, R. (2021). The development of information technology and its influence on the field of management accounting. Journal of Financial and Tax, 1(2): 131–149.
[26] Savkiv, U. S., and Kuzmin, T. L. (2023). Improving accounting and reporting in the digital economy. The Actual Problems of Regional Economy Development. 19(2): 87-95. (in Ukrainian).
[27] Smiesova, V., Pylypenko, A., Ivanova, M., and Karpenko, R. (2019). Economic and institutional conditions for the implementation of economic interests in the countries of the world. Montenegrin Journal of Economics, 15(4), 75-86. DOI: http://doi.org/10.14254/1800-5845/2019.15-4.6
[28] Sunardi, N., Husain, T., and Kadim, A. (2020). Determinants of debt policy and company’s performance. International Journal of Economics and Business Administration, 8(4): 204-213. Available at: https://ijeba.com/journal/580
[29] Thapa, C., and Camtepe, S. (2021). Precision health data: Requirements, challenges and existing techniques for data security and privacy. Computers in Biology and Medicine, 129: 104130. DOI:https://doi.org/10.1016/j.compbiomed.2020.104130
[30] Vărzaru, A. A. (2022). Assessing artificial intelligence technology acceptance in managerial accounting. Electronics, 11(14): 2256. DOI: https://doi.org/10.3390/electronics11142256
[31] Wang, A., Guo, S., and Li, Ruixue. (2022). Artificial intelligence technology enables the development of management accounting: The generation of Intelligent Accounting. Paper presented on the 3rd Asia Service Sciences and Software Engineering Conference, February 24-26, in Macau Macao, China. DOI:https://dx.doi.org/10.1145/3523181.3523190
[32] Xu, X., Yang, Z., and Zhou, W. (2021). Research on intelligent accounting system based on management activity theory – from accounting informatization to accounting intelligence. Accounting Research, 3: 11–27. DOI: https://doi.org/10.1109/ACCESS.2023.3333389
[33] Zaporozhets, T. V. (2020). Intelligent management system: Theoretical construction approaches. Public management and administration in Ukraine, 15: 46-52. DOI: https://doi.org/10.32843/2663-5240- 2020-15-9 (in Ukrainian).
[34] Zhang, C., Abigail, Cho, Soohyun, and Vasarhelyi, M. (2022). Explainable artificial intelligence (xai) in auditing. International Journal of Accounting Information Systems, 46: 100572. DOI:https://doi.org/10.1016/j.accinf.2022.100572
[35] Zhylin, M., et al. (2024). Analysis of contemporary methods of integrating emotional intelligence into artificial intelligence systems: Advantages, disadvantages, and perspectives. Journal of Theoretical and Applied Information Technology, 102(7): 2842–2853.
[2] Al-Okaily, Manaf, Alsmadi, Ayman Abdalmajeed. (2024). The role of metaverse and blockchain in enhancing digital Islamic finance: Empirical perspective. Journal of Islamic Marketing: 1-15. DOI:https://doi.org/10.1108/JIMA-11-2023-0369
[3] Bakarich, K. M., and O'Brien, P. E. (2021). The robots are coming… but aren't here yet: The use of artificial intelligence technologies in the public accounting profession. Journal of Emerging Technologies in Accounting, 18(1): 27-43. DOI: https://doi.org/10.2308/JETA-19-11-20-47
[4] Benko, Mykola, Moskalyuk, Hanna. (2022). Accounting and management reporting in the context of globalization and digitalization: innovations and challenges. In: M. A. Goldenblat (ed.) Державне управління та адміністрування, сфера обслуговування, економіка та міжнародні відносини як рушійні сили економічного зростання держав XXI століття, pp. 1-18. Vinnytsia: European Scientific Platform. DOI:https://doi.org/10.36074/paaaseeirdfegcc.ed-2.07 (in Ukrainian).
[5] Bilous, O., and Kundeus, O. (2023). Transformation of accounting in the digital economy. Galician economic journal, 83(4): 56-61. DOI: https://doi.org/10.33108/galicianvisnyk_tntu2023.04.056 (in Ukrainian).
[6] Brukhansky, R., and Spilnyk, I. (2020). Digital accounting: concepts, roots and current discourse. The Institute of Accounting, Control and Analysis in the Globalization Circumstances, 3(4): 7-20 (in Ukrainian)
[7] Butynets, F. F., Ivakhnenkov, S. V., Davydiuk, T. V., and Shakhraychuk, T. V. (2022). Accounting Information Systems. ZHITI. (in Ukrainian).
[8] Cho, O.-H. (2024). Analysis of the impact of artificial intelligence applications on the development of accounting industry. Nanotechnology Perceptions, 20(S1): 74-83. DOI: https://doi.org/10.62441/nano-ntp.vi.390
[9] Damerji, H., and Salimi, A. (2021). Mediating effect of use perceptions on technology readiness and adoption of artificial intelligence in accounting. Accounting Education, 30(2): 107-130. DOI:https://doi.org/10.1080/09639284.2021.1872035
[10] Emetaram, E., and Uchime, H. N. (2021). Impact of Artificial Intelligence (AI) on Accountancy Profession. Journal of Accounting and Financial Management, 7(2): 15-25. Available at: https://www.iiardjournals.org/get/JAFM/VOL.%207%20NO.%201%202021/Impact%20of%20Artificial%20Intelligence.pdf
[11] Gonçalves, M. J. A., et al. (2022). The future of accounting: How will digital transformation impact the sector?, Informatics, 9(1): 19. DOI: https://doi.org/10.3390/informatics9010019
[12] Gupta, M., et al. (2021). Application of fuzzy logic data analysis method for business development. Lecture Notes in Networks and Systems, 194: 75-93. DOI: https://doi.org/10.1007/978-3-030-69221-6_7
[13] Han, H., et al. (2023). Accounting and auditing with blockchain technology and artificial Intelligence: A literature review. International Journal of Accounting Information Systems, 48: 100598. DOI:https://doi.org/10.1016/j.accinf.2022.100598
[14] Hasan, A.R. (2021). Artificial intelligence (AI) in accounting & auditing: A literature review. Open Journal of Business and Management, 10(1): 440-465. DOI: https://doi.org/10.4236/ojbm.2022.101026
[15] Kulynych, M., Shvorak, A., and Zhilenko, L. (2020). Implementation of digital literacy under conditions of the future changes in accountant profession. Economic journal of Lesya Ukrainka Volyn National University, 1: 216-224. DOI: https://doi.org/10.29038/24114014-2020-01-216-224 (in Ukrainian)..
[16] Leitner-Hanetseder, S., et al. (2021). A profession in transition: Actors, tasks and roles in AI-based accounting. Journal of Applied Accounting Research, 22(3): 539-556. DOI: https://doi.org/10.1108/JAAR-10-2020-0201
[17] Lelyk, L., et al. (2022). An integrated analysis of enterprise economy security. Decision Science Letters, 11(3): 299-310. DOI: https://doi.org/10.5267/j.dsl.2022.2.003
[18] Lysenko, S., et al. (2024). Global cybersecurity: Harmonising international standards and cooperation. Multidisciplinary Reviews, 7: 2024spe021. DOI: https://doi.org/10.31893/multirev.2024spe021
[19] Megits, N., et al. (2022). The «five-helix» model is an effective way to develop business in industry 4.0 of selected countries. Journal of Eastern European and Central Asian Research, 9(2): 357-368. DOI:https://doi.org/10.15549/jeecar.v9i2.920
[20] Nikonenko, U., et al. (2022). Assessing the policy of attracting investments in the main sectors of the economy in the context of introducing aspects of industry 4.0. International Journal of Sustainable Development and Planning, 17(2): 497-505. DOI: https://doi.org/10.18280/ijsdp.170214
[21] Nóbrega, V., et al. (2023). The impact of artificial intelligence in accounting: Application in SMEs. International Journal of Electronic Finance, 12(2): 192-214. DOI: https://doi.org/10.1504/IJEF.2023.129923
[22] Pilevych, D. (2020). Transformation of the accounting system in the conditions of digital technologies development. Problems and Prospects of Economics and Management, 3(23): 149–157. Available at: http://ppeu.stu.cn.ua/article/view/224553 (in Ukrainian).
[23] Pravdiuk, N., Obniavko, M., and Vasylyna, A. (2022). Implementation of innovative technologies in the accounting system: Global experience and prospects of Ukraine. Efektyvna Ekonomika, 11: 32-54. DOI:http://doi.org/10.32702/2307-2105.2022.11.8 (in Ukrainian).
[24] Rane, N. (2023). Role and challenges of ChatGPT and similar generative artificial intelligence in finance and accounting. Available at: https://ssrn.com/abstract=4603206 DOI: https://dx.doi.org/10.2139/ssrn.4603206
[25] Riinawati, R. (2021). The development of information technology and its influence on the field of management accounting. Journal of Financial and Tax, 1(2): 131–149.
[26] Savkiv, U. S., and Kuzmin, T. L. (2023). Improving accounting and reporting in the digital economy. The Actual Problems of Regional Economy Development. 19(2): 87-95. (in Ukrainian).
[27] Smiesova, V., Pylypenko, A., Ivanova, M., and Karpenko, R. (2019). Economic and institutional conditions for the implementation of economic interests in the countries of the world. Montenegrin Journal of Economics, 15(4), 75-86. DOI: http://doi.org/10.14254/1800-5845/2019.15-4.6
[28] Sunardi, N., Husain, T., and Kadim, A. (2020). Determinants of debt policy and company’s performance. International Journal of Economics and Business Administration, 8(4): 204-213. Available at: https://ijeba.com/journal/580
[29] Thapa, C., and Camtepe, S. (2021). Precision health data: Requirements, challenges and existing techniques for data security and privacy. Computers in Biology and Medicine, 129: 104130. DOI:https://doi.org/10.1016/j.compbiomed.2020.104130
[30] Vărzaru, A. A. (2022). Assessing artificial intelligence technology acceptance in managerial accounting. Electronics, 11(14): 2256. DOI: https://doi.org/10.3390/electronics11142256
[31] Wang, A., Guo, S., and Li, Ruixue. (2022). Artificial intelligence technology enables the development of management accounting: The generation of Intelligent Accounting. Paper presented on the 3rd Asia Service Sciences and Software Engineering Conference, February 24-26, in Macau Macao, China. DOI:https://dx.doi.org/10.1145/3523181.3523190
[32] Xu, X., Yang, Z., and Zhou, W. (2021). Research on intelligent accounting system based on management activity theory – from accounting informatization to accounting intelligence. Accounting Research, 3: 11–27. DOI: https://doi.org/10.1109/ACCESS.2023.3333389
[33] Zaporozhets, T. V. (2020). Intelligent management system: Theoretical construction approaches. Public management and administration in Ukraine, 15: 46-52. DOI: https://doi.org/10.32843/2663-5240- 2020-15-9 (in Ukrainian).
[34] Zhang, C., Abigail, Cho, Soohyun, and Vasarhelyi, M. (2022). Explainable artificial intelligence (xai) in auditing. International Journal of Accounting Information Systems, 46: 100572. DOI:https://doi.org/10.1016/j.accinf.2022.100572
[35] Zhylin, M., et al. (2024). Analysis of contemporary methods of integrating emotional intelligence into artificial intelligence systems: Advantages, disadvantages, and perspectives. Journal of Theoretical and Applied Information Technology, 102(7): 2842–2853.
Published
2025-03-31
How to Cite
ALNAIMAT, Mohammad Ahmad et al.
Artificial Intelligence in Accounting: Revolutionizing Financial Management in the Digital Landscape.
Theoretical and Practical Research in Economic Fields, [S.l.], v. 16, n. 1, p. 130 - 141, mar. 2025.
ISSN 2068-7710.
Available at: <https://journals.aserspublishing.eu/tpref/article/view/8783>. Date accessed: 16 apr. 2025.
doi: https://doi.org/10.14505/tpref.v16.1(33).11.
Section
Articles
Non-Exclusive License under Attribution 4.0 International Public License (CC BY 4.0):
This ‘Article’ is distributed under the terms of the license CC-BY 4.0., which lets others distribute, remix, adapt, and build upon this article, even commercially, as long as they credit this article for the original creation. ASERS Publishing will be acknowledged as the first publisher of the Article and a link to the appropriate bibliographic citation (authors, article title, volume issue, page numbers, DOI, and the link to the Published Article on ASERS Publishing’ Platform) must be maintained.