Role of Artificial Intelligence in Modern Accounting Practices

Abstract

Artificial Intelligence (AI) is increasingly changing the way accounting activities are performed by automating routine processes, analysing large volumes of financial data, identifying unusual transactions, and supporting professional decision-making. This paper examines the role of AI in modern accounting practices, with particular attention to accounting automation, financial analysis, fraud detection, auditing, and managerial decision-making. AI-based technologies can improve operational efficiency by reducing repetitive manual work and allowing accounting professionals to devote greater attention to interpretation, control, and advisory activities. Recent research also indicates that generative AI can support productivity and financial reporting quality, although its effectiveness depends on appropriate human oversight. At the same time, AI adoption creates challenges relating to data privacy, cybersecurity, algorithmic bias, explainability, professional responsibility, and employee skills. The paper concludes that AI should be viewed as an augmentation technology rather than a complete replacement for accounting professionals. Successful adoption requires reliable data, effective internal controls, ethical governance, appropriate training, and continuous human review.