The Role of AI and Automation in Improving Accounting Efficiency

Abstract

This research examines how artificial intelligence (AI) and automation enhance accounting efficiency, focusing on reducing human error, increasing processing speed, and shifting accountants’ roles toward strategic advisory functions. The accounting profession faces challenges from complex financial transactions, regulatory demands, and the need for real-time insights. Manual processes are inefficient and error-prone, making AI and automation, including robotic process automation (RPA) and machine learning, critical for streamlining operations and improving compliance. Utilizing a qualitative desktop research model, this study synthesizes peer-reviewed literature from 2016–2025, employing thematic analysis to explore efficiency, automation scope, role transformation, and implementation challenges. By synthesizing these diverse streams of literature within an integrated theoretical framework, this study provides a roadmap for practitioners and identifies critical knowledge gaps, demonstrating that AI transforms accounting by automating routine tasks and fostering strategic roles, but successful adoption demands robust governance, technical compatibility, and targeted upskilling to ensure compliance and trust in the digital era. Sources were selected from reputable databases like Scopus and Web of Science, prioritizing recent, credible publications. AI and automation significantly reduce errors (up to 60%) and processing times (e.g., 43% shorter reporting cycles), enhance fraud detection, and improve audit accuracy. They enable real-time financial insights and shift accountants to strategic roles. However, challenges include ethical risks like algorithmic greenwashing, integration with legacy systems, and skill gaps, necessitating robust training and governance. AI transforms accounting by automating routine tasks and fostering strategic roles, but successful adoption requires addressing ethical, technical, and skill-related challenges to ensure compliance and trust in the digital era.

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