ARTIFICIAL INTELLIGENCE IN ACCOUNTING AND AUDITING: TRANSFORMING FINANCIAL DECISION-MAKING AND PROFESSIONAL PRACTICES

Abstract

Abstract: The emergence of Artificial Intelligence (AI) has significantly transformed accounting and auditing practices across organizations worldwide. The increasing availability of financial data, advancements in machine learning algorithms, and the demand for real-time financial information have accelerated the adoption of AI-driven technologies in accounting and auditing functions. Traditional accounting systems primarily relied on manual data processing and periodic reporting, whereas AI enables continuous monitoring, predictive analytics, automated transaction processing, and intelligent decision support. In auditing, AI enhances fraud detection, risk assessment, anomaly identification, and audit quality through automated analysis of large volumes of structured and unstructured financial data. The integration of technologies such as Machine Learning (ML), Natural Language Processing (NLP), Robotic Process Automation (RPA), and Generative AI has redefined professional roles and transformed the manner in which financial information is generated, analyzed, and interpreted. Despite numerous benefits, the adoption of AI also raises concerns regarding data privacy, algorithmic bias, transparency, ethical accountability, and workforce readiness. This paper examines the role of AI in accounting and auditing, explores its influence on financial decision-making, evaluates its benefits and challenges, and discusses future implications for accounting professionals. The study is conceptual in nature and is based on an extensive review of recent academic literature and professional reports. The findings indicate that AI acts as an enabler of enhanced efficiency, accuracy, and strategic decision-making while complementing rather than replacing human expertise in accounting and auditing.