Review of Management Accounting in a Digital Economy (Published)
The paper gives an overview of the transformation in management accounting practices in a digital economy. Advanced technologies such as big data analytics, cloud computing, artificial intelligence, and blockchain digitised traditional accounting ways by providing real-time data processing, enhanced decision-making, and strategic insights. The review focuses on how technological innovations have changed data collection, analysis, and reporting links, moving attention away from record-keeping to predictive and prescriptive analytics. Discussions are the automation of routine tasks, real-time financial reporting developments, and increased involvement of management accountants in strategic planning and risk management. The review talks about cloud accounting systems, machine learning in managing costs, blockchain for financial transparency and security, and how digital transformation opens up some critical challenges related to data privacy concerns, security risks, and massive upskilling on the part of accounting professionals. The paper addresses these issues by examining strategies to mitigate identified risks and bridging skill gaps through specific training and educational efforts. It further reviews the emerging trends in predictive and prescriptive analytics and discusses their potential applications in Management Accounting. The review sheds light on changing regulatory scenarios that will impact digital practices in accounting. The implications of this digital transformation are huge and thus require a rethink in the role of management accounting within organisations. It calls for management accountants to reposition themselves in the field and stay relevant by embracing new technologies while attaining strategic competencies, enabling them to drive value creation against the drastic changes in the digital age.
Keywords: Artificial Intelligence, Digital Transformation, big data analytics, cloud accounting, machine learning, strategic planning
The Role of AI in Automating Routine Accounting Tasks: Efficiency Gains and Workforce Implications (Published)
The integration of Artificial Intelligence (AI) in accounting has revolutionized the profession by automating routine tasks and streamlining workflows. AI-driven automation in accounting involves the use of advanced algorithms and machine learning techniques to perform repetitive tasks such as data entry, reconciliation, and financial reporting. By leveraging AI, organizations can achieve significant efficiency gains, reduce manual effort, and enhance accuracy in accounting processes. One of the key efficiency gains of AI-driven automation in accounting is the acceleration of repetitive tasks. AI algorithms can process large volumes of data in a fraction of the time it takes for humans, enabling organizations to complete tasks such as data entry and reconciliation more quickly and efficiently. This not only saves time but also allows accountants to focus on more value-added activities such as data analysis and strategic decision-making. Moreover, AI-driven automation improves accuracy in accounting processes by minimizing errors and inconsistencies that are inherent in manual tasks. AI algorithms are trained on large datasets and learn from past experiences, enabling them to identify patterns, detect anomalies, and make accurate predictions. By reducing errors and ensuring data integrity, AI-driven automation enhances the reliability of financial information and strengthens compliance with regulatory requirements. However, the widespread adoption of AI-driven automation in accounting also brings workforce implications that must be carefully considered. While AI streamlines routine tasks, it may also lead to concerns about job displacement and the future of the accounting profession. As AI takes on repetitive tasks, accountants must adapt by acquiring new skills and expertise in areas such as data analysis, strategic planning, and technology integration. Additionally, the role of accountants is evolving from data processors to data analysts and strategic advisors. Accountants are increasingly expected to leverage AI-driven insights to provide strategic guidance, identify opportunities for process improvement, and drive business growth. By embracing AI as a tool to augment their capabilities, accountants can enhance their value proposition and remain indispensable in the digital age. The role of AI in automating routine accounting tasks offers significant efficiency gains and workforce implications for the accounting profession. While AI-driven automation accelerates tasks and improves accuracy, it also requires accountants to adapt to new roles and acquire new skills. By embracing AI as a transformative technology, organizations can optimize efficiency, enhance accuracy, and empower accountants to provide strategic value in an increasingly digital world. Implications.
Keywords: Accounting, Artificial Intelligence, Automation, efficiency gains, workforce
In What Way Does Artificial Intelligence Influences Audit Practice? Empirical Evidence from Southwest, Nigeria (Published)
AI has gained significant traction as an innovative tool for automating tasks, enhancing data analytics, and reducing the risk of errors in auditing processes. This study investigated the impact of adopting artificial intelligence (AI) on the quality of audit practice in Nigeria, focusing on data mining, machine learning, and image recognition as proxies for the independent variable. Population was 251 accounting firms in southwest Nigeria, with a sample size of 159, purposively determined. The study utilized structured questionnaires for data collection, with regression analysis, and correlation matrices adopted for the analysis. The findings revealed a significant positive relationship between data mining and image recognition with the quality of audit practice in Nigeria. Machine learning, however, showed an insignificant negative relationship. This suggests that AI, particularly data mining and image recognition, can enhance audit quality in Nigeria. As a result, the study recommended that Nigerian audit professionals and firms should consider incorporating data mining techniques into their audit processes to improve effectiveness and error detection.
Keywords: Artificial Intelligence, Data mining, Quality of audit practice., image recognition, machine learning
Artificial Intelligence Adoption and Corporate Operating Activities of Deposit Money Banks (Published)
The deposits money banks (DMBs) in Nigeria that invested artificial intelligence (AI) were considered in this study with the objective to know the effect of AI on employee cost and other operating cost in the banking sector. The study adopted ex-post facto research design. Secondary data were gathered between 2012 and 2022 from the respective financial statements of the DMBs and analyzed using panel regression model. It was gathered that the adoption of AI has negative effects on employee cost while it has positive effects on operating expenses of DMBs in Nigeria. The study concluded that the adoption of AI by DMBs in Nigeria will improve their corporate operating activities which will translate to improve financial performance. Government should regulate the activities of DMBs to forestall any form of laying-off.
Keywords: Artificial Intelligence, Financial System, Operating Cost, employee cost