This article discusses the implications of artificial intelligence technologies e.g. robotic process automation and machine learning on the efficiency of financial reporting process and accounting operations. Results reveal that AI-driven automation often increases the accuracy of financial reporting and reduces repetitive human tasks. The results demonstrate that AI should be used as a supporting tool for the accounting professionals. AI will be more relevant in the future of financial reporting and accounting processes.
Introduction
In recent years, artificial intelligence (AI) has been increasingly used in accounting and financial management. Small and medium-sized firms (SMEs) are beginning to adopt AI-powered automation technologies to boost efficiency in financial operations and to free up tedious tasks. Organizations are using technologies such as robotic process automation and machine learning to do things more efficiently, such as invoice processing, transaction classification and financial reporting (Davenport & Ronanki 2018; Kokina & Davenport 2017).
Financial reporting is one of the important functions of firms, as managers, investors and other stakeholders use financial information for corporate decision making. Many companies still handle accounting work pretty much by hand. This opens the possibility of human errors. Financial reports may be inaccurate because of miscalculations, misclassification of transactions, and data entry errors that generate problems for firms (International Financial Reporting Standards Foundation 2023).
Recent study focused on the effect of AI-powered automation on the quality of financial reporting in Finnish SMEs and accounting firms. The study aimed to investigate if AI helps to reduce errors, increase productivity and encourage more credible reporting procedures. The research was carried out utilizing a quantitative manner through an online survey issued to professionals working in accounting and finance (Ait bella 2026).
The study’s results indicated that AI-powered automation is usually beneficial for the accuracy of financial reporting. Most respondents thought that AI helps eliminate human errors and enhances the accuracy of financial information. Automated systems can do repetitive activities more consistently and more quickly than manual processes, reducing the possibility of mistakes due to weariness or lack of attention (Ait bella 2026).
Another interesting finding was that AI can potentially improve the efficiency of financial reporting procedures. Automated systems process more financial data in a shorter amount of time and detect inconsistencies that humans may overlook. Also, several participants found that AI helps organizations to maintain more trustworthy financial reporting systems and increase the compliance to reporting standards (Ait bella 2026).
Data quality is essential
The study also found certain barriers despite the benefits of AI. One of the main issues is data quality, since the effectiveness of the AI systems is strongly dependent on the quality and completeness of the data. AI could produce inaccurate findings if it uses wrong or outdated data. Therefore, good data management approaches are needed for businesses before the introduction of AI systems (Warren et al. 2015).
The study also found that AI cannot totally replace human help in financial reporting. Automation can take care of many of the mundane activities of daily living, but accounting professionals are still needed to review the information, monitor the systems and verify that the reports are still accurate and trustworthy. Financial management is an important task of human judgement (World Economic Forum 2021).
Conclusion
AI-based automation is becoming an important feature of accounting and financial reporting in SMEs. The results of the study suggest the ability of AI to increase accuracy, avoid errors and improve efficiency in the operations of financial reporting. But organizations also need to focus on data quality and human oversight to gain the most value. The future of financial reporting will presumably be some mix of new technologies and expert experience.
Authors
Wael Ait bella is a final-year student in Business Administration at LAB University of Applied Sciences.
Sajal Kabiraj, PhD, works as Principal lecturer at the Faculty of Business and Hospitality Management at LAB University of Applied Sciences.
References
Ait bella, W. 2026. AI-Driven Automation and Financial Reporting Accuracy: Assessing the Impact of AI on Financial Reporting Accuracy in SMEs and Accounting Firms in Finland. Thesis. LAB University of Applied Sciences. Cited 20 May 2026. Available at https://urn.fi/URN:NBN:fi:amk-2026052818752
Davenport, T.H. & Ronanki, R. 2018. Artificial Intelligence for the Real World. Harvard Business Review, Vol. 96 (1), 108–116.
International Financial Reporting Standards Foundation. 2023. Conceptual Framework for Financial Reporting. London: IFRS Foundation.
Kokina, J. & Davenport, T.H. 2017. The Emergence of Artificial Intelligence: How Automation Is Changing Auditing. Journal of Emerging Technologies in Accounting, Vol. 14 (1), 115–122.
Warren, J.D., Moffitt, K.C. & Byrnes, P. 2015. How Big Data Will Change Accounting. Accounting Horizons, Vol. 29 (2), 397–407.
World Economic Forum. 2021. The Future of Jobs Report.
Żerdzicki, J. 2026. Trader analysant les graphiques boursiers sur des écrans d’ordinateur avec une calculatrice. Unsplash. Cited 20 May 2026. Available at https://unsplash.com/fr/photos/trader-analysant-les-graphiques-boursiers-sur-des-ecrans-dordinateur-avec-une-calculatrice–DWqOL_d91I
