Adoption of Artificial Intelligence in Accounting: Opportunities, Challenges, and Ethical Implications

Abstract

The implementation of Artificial Intelligence (AI) in accounting has revolutionized the ways in which financial data is processed, analyzed, and interpreted in different industries. Some relevant AI-powered technologies that have enhanced efficiency and accuracy in accounting processes while simultaneously decreasing human error and cost of operations can be seen in predictive analytics, machine learning, and natural language processing. This paper reviews the opportunities, challenges, and ethical considerations related to the use of AI in accounting. It highlights the critical role of AI in automation of audit processes, fraud detection, decision making and prediction of financial outcomes. However, it also notes the emerging issues such as privacy threats, job displacement, algorithmic bias and unresolved ethical concerns of accountability and transparency. The findings underpin the importance of the future of accounting, rooted in creating a dynamic balance between the progress of technology and ethical oversight to guarantee that human oversight remains a part of the picture despite the unparalleled efficiencies made possible by the use of AI.