Title: The Impact of Artificial Intelligence on Modern Accounting: A Literature Review

Authors: Haoyi Li, Song Haohao, Fu Ming

Affiliations:

1. Wing-Yu Ng CPA, PLLC, New York, USA

2. Nanjing University of Aeronautics and Astronautics, Nanjing, China

3. Yonyou Network Technology Co., Ltd, Nanjing, China

Abstract:

This paper focuses on review of role of artificial intelligence (AI) on different accounting

processes according to the research works carried out recently. The study will consider the effect

of AI on traditional accounting business processes, on evolution of the accounting theory and the

skills needed for accounting professionals. AI assessment shows the major changes in the

accounting paradigms from digital liberation of a variety of time-consuming and repetitive tasks

to the development of decision-support systems for the management lending wisdom behind the

automation mechanism variant parts of theory, management accounting theory, value, and

creation theory, and controlling intelligent mechanism theory. As a result, the article focuses

upon the accountants' skills needed in the wake of AI waves, providing support for community

learning, interdisciplinary competences, and joint activities between academia and business.

Introduction:

The 4th industrial revolutions started the surge of AI, its impact that are profound across all

industries ranging from accountancy. The pathway is outlined from theorizing stage to

practicalize the milestones selection rendering those best in describing the series in a short period
of time. Major trends amid these shifts include the appearance of smart financial systems and

sharing service centers that signal the accounting sector is called to change the shape of its

approaches and reinvent ways of working due to the AI progress.

Artificial Intelligence’s Influence on Accounting Business:

This section of the essay is dedicated to showing the different ways in which AI is transforming

accounting business operations by replacing routine jobs and enhancing the reliability of the data

besides creating business information that will be used for decision-making (Varzaru, 2022).

Robots together with sharing service centers are being considered as saving mechanisms to

accelerate accounting and economize on the time used. The power of AI to dramatically redefine

financial procedures: analysis and forecasting is illustrated.

Accounting Theory in the Context of Artificial Intelligence: Accounting

The review examines the evolution of accounting theory in response to the integration of AI,

focusing on three main theories: The AFT theory of new management accounting, the theory of

value creation, and the mechanism of intelligent control theory (Monteiro, 2023). It highlights this

by recent results in which AI helps process data faster, analyze value chains, and produce

adaptive control mechanisms. Therefore, accounting models are transformed into tools for

strategic decision-making.

Reconstruction of Accounting Personnel's Ability:

In this part of my academic paper, I describe the certain skills which accountants must know and

also developing skillsets needed for the profession in the age of AI. It brings to the fore respect

for updates and upgrades, digital literacy (Halim, 2023), communication, and critical thinking.

Besides it also explicates the part that educative institutes play in revolutionizing accounting
training programs to suit the industry standards and inculcating the ability of interacting between

various disciplines in the students.

Conclusion and Future Study:

The final paragraph of the literature review sums up the major findings and underlines the

revolutionary fashion in which the AI technology may impact the practice and the position of the

accouters. It drives to the essence that we have to keep on collecting the data for implementation

of these challenges which are security legal boundaries, and technology dependence in the

accounting field. The study concludes the joint work of local authorities, academics, and

industrial and policy-making leaders to control AI and its risks both existential and social.

At the end, the literature review outlined the different facets of AI effect accounting in the

current world, while giving recommendations on how research and practice should be developed

in the future.

References:

Halim, M., & Aspirandi, R. M. (2023). PERAN AKUNTANSI MANAJEMEN STRATEGIK TERHADAP

PENGAMBILAN KEPUTUSAN BISNIS MELALUI ANALISIS BIG DATA DAN ARTIFICIAL INTELLIGENCE:

SUATU STUDI LITERATURE REVIEW. JIAI (Jurnal Ilmiah Akuntansi Indonesia), 8(1), 110-128

Li, C., Haohao, S., & Ming, F. (2020, April). Research on the impact of artificial intelligence technology on

accounting. In Journal of Physics: Conference Series (Vol. 1486, No. 3, p. 032042). IOP Publishing

Monteiro, A., Cepêda, C., Da Silva, A. C. F., & Vale, J. (2023). The Relationship between AI Adoption

Intensity and Internal Control System and Accounting Information Quality. Systems, 11(11), 536.
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Intelligence in Accounting: A Quantitative Economic Perspective for the Future of US Financial

Markets. Finance & Accounting Research Journal, 6(1), 56-78.

Varzaru, A. A. (2022). Assessing the impact of AI Solutions’ ethical issues on performance in managerial

accounting. Electronics, 11(14), 2221.

Yu, S. J., & Rha, J. S. (2021). Research trends in accounting fraud using network analysis. Sustainability,

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