Authors: Dr. Lakshmipathi K N, Prof A.Seshachalam
Abstract: The role of artificial intelligence (AI) in transforming financial accounting and tax compliance is one of those areas that have become very intricate in terms of regulation. Based on the systematic review and synthesis of recent empirical research and industry surveys (2021–2026), the study evaluates how AI, including machine learning, natural language processing, and generative AI, transforms essential accounting and tax processes. As follows, the implementation of AI technologies leads to efficiency gains, including 81% productivity increases and the enhancement of accuracy up to 98%. Companies using AI-powered compliance solutions attain the accuracy rate in fraud detection of more than 98%, while the processing time is reduced to less than a second. However, despite numerous benefits, there are still some challenges identified, including the lack of appropriate internal skills among 44% of respondents and low data readiness among 80% of respondents. Thus, the paper concludes that effective application of AI technologies is possible only through effective collaboration between humans and AI and appropriate governance, which requires significant investments into data infrastructure.
DOI: http://doi.org/
