THE ROLE OF ARTIFICIAL INTELLIGENCE ADOPTION IN ENHANCING FINANCIAL REPORTING ACCURACY, AUDITING EFFICIENCY AND INFORMATION ASYMMETRY IN NIGERIA
TL;DR
The study concludes that artificial intelligence adoption is a critical driver of efficiency and transparency in financial reporting systems and recommends that financial institutions invest in technological infrastructure, staff training, and data governance frameworks to optimize artificial intelligence benefits.
Abstract
This study examines the role of artificial intelligence adoption in enhancing financial reporting accuracy, auditing efficiency, and reducing information asymmetry among financial firms in Nigeria. Despite the increasing integration of artificial intelligence in accounting and auditing practices, concerns persist regarding its actual effectiveness and adoption dynamics. The study adopts a survey research design, collecting primary data from accounting professionals, auditors, financial managers, and IT specialists within selected deposit money banks in Nigeria. The study employs Structural Equation Modeling to analyze the relationships among variables. Findings reveal that artificial intelligence adoption significantly improves financial reporting accuracy and auditing efficiency while reducing information asymmetry among stakeholders. The study further establishes that organizational readiness and governance structures play a crucial role in maximizing the benefits of artificial intelligence. The study concludes that artificial intelligence adoption is a critical driver of efficiency and transparency in financial reporting systems. It recommends that financial institutions invest in technological infrastructure, staff training, and data governance frameworks to optimize artificial intelligence benefits.