The Impact of Artificial Intelligence on Accounting and Financial Reporting: Opportunities, Challenges, And Future Directions

Artificial Intelligence (AI) is transforming accounting and financial reporting through automation, predictive analytics, fraud detection, and real-time financial intelligence. This study empirically investigates the impact of AI adoption on accounting efficiency, reporting quality, and professional transformation in India. Primary data were collected from 300 respondents including chartered accountants, auditors, finance executives, academicians, and corporate professionals across India. Quantitative techniques including descriptive statistics, reliability testing, correlation, regression, and ANOVA were employed. Results reveal that AI significantly improves accounting efficiency, reporting accuracy, fraud detection capability, and strategic decision-making. However, barriers such as cybersecurity concerns, implementation cost, skill gaps, and ethical risks remain substantial. The findings suggest that AI complements accounting professionals by shifting their role toward analytical and advisory functions. The study contributes to the literature on digital accounting transformation in emerging economies and provides policy implications for regulators, educators, and practitioners.