The Effect of Artificial Intelligence Utilization on Financial Reporting Quality: The Mediating Role of Users’ Trust in Accounting Systems

Abstract

The objective of this study is to examine how artificial intelligence utilization influences financial reporting quality through the mediating role of users’ trust. This applied research employed a descriptive-correlational design. The statistical population consisted of accountants, financial analysts, and managers in Tehran, and data were collected through convenience sampling. A researcher-made questionnaire with 30 items across three constructs—AI utilization, users’ trust, and financial reporting quality—was used, rated on a five-point Likert scale. A total of 357 valid responses were analyzed. Content validity was approved by experts, construct validity was confirmed using CFA, and reliabilities (Cronbach’s alpha 0.84–0.91) were acceptable. Structural equation modeling was performed using SmartPLS, and model fit indices indicated satisfactory fit. AI utilization showed a positive and significant effect on financial reporting quality (β=0.343, p<0.001). AI utilization strongly increased users’ trust (β=0.915, p<0.001), and users’ trust significantly improved financial reporting quality (β=0.621, p<0.001). The mediating role of trust was supported, with the indirect effect exceeding the direct effect. Model fit indices (SRMR=0.056, NFI=0.91, GOF=0.64) confirmed good structural adequacy. The findings suggest that the enhancement of financial reporting quality in AI-driven environments depends not only on the technological capabilities of AI systems but also on strengthening users’ trust through increased transparency, data security, and ethical practices.