Impact of Artificial Intelligence on Traditional Accounting - An Overview of Opportunities and Challenges

Pepperdine University, Malibu, 90263, United States

^* Corresponding author: xiaogeng.tang@pepperdine.edu

Abstract

Artificial intelligence (AI) has had a significant impact on the accounting industry by improving accuracy, automating repetitive tasks, and increasing efficiency. In addition to financial automation, auditing, tax compliance, and predictive analysis, advanced AI technologies like machine learning (ML), robotic process automation (RPA), and natural language processing (NLP) are becoming more and more integrated into various accounting functions. These innovations enable businesses to reduce operational costs and help more educated and appropriate decision-making. Despite its benefits, AI still has some disadvantages. Worries about different problems still persist, including the “black box” problem, the lack of transparency in AI decision-making, job displacements, threats to data security, and professional limitations. This report examines the benefits and drawbacks of AI for the accounting industry. Additionally, it looks at how accountants can reevaluate their roles, effectively integrate AI-driven tools, and acquire new skills. Organizations should strike a balance between AI techniques and human expertise in order to maximize the benefits of AI while reducing its challenges. This report addresses the importance of ensuring AI applications adhere to market standards and ethical requirements while supporting compliance.