The Impact of Artificial Intelligence on Accounting Practices: An Academic Perspective

Abstract

Artificial intelligence (AI) is rapidly transforming the landscape of accounting practices, offering unprecedented opportunities for process automation, enhanced operational efficiency, and improved accuracy in financial reporting, fraud prevention, and regulatory compliance. Here we show that while AI's potential is widely recognized, its adoption in developing economies, particularly in the context of Saudi Arabia's Vision-2030, presents unique challenges and opportunities that warrant focused investigation. Through a comprehensive analysis utilizing structured surveys and composite-based structural equation modeling (SEM) with the ADANCO approach, we evaluate the knowledge, attitudes, and practices (KAP) of accounting academics regarding AI. Our findings reveal AI's significant capacity to streamline operations, execute knowledge-intensive tasks, and bolster fraud detection capabilities. Successful implementation, however, hinges on targeted educational programs, robust regulatory frameworks, and diligent ethical assessments to mitigate risks such as algorithmic biases, workforce displacement, and integrity concerns. This study establishes a direct correlation between educational perspectives on AI and its practical application, underscoring the pivotal role of knowledgeable professionals in driving positive industrial advancements. We recommend fostering AI literacy, promoting socio-economic equality in adoption, and cultivating sustainable learning environments. These insights provide actionable guidance for academics, professionals, organizations, and policymakers to navigate AI's evolving role, ensuring ethical standards are maintained. The enhanced integration of AI in accounting will enable Saudi Arabia to achieve its Vision-2030 goals, setting a benchmark for sustainable, human-centric technological development in the field.