Project Report On "The impact of Artificial Intelligence on accounting practices"

Abstract

This report is about the change in accounting brought by Artificial Intelligence (AI); it details the conditions and challenges AI has brought to our profession. As traditional manual and data-based accounting processes become more automatic, AI technologies-including machine learning, natural language programming (NLP), robotic process automation (RPA), and predictive analytics, have emerged as tools for improving accuracy and efficiency. They help us make strategic decisions more effectively than ever before. The main charge point for the paper is to partly meet the BBA program academic requirements of the University of International Business Studies. The other purposes are to analyze AI's role, making financial reporting more effective and supporting both auditing processes and decision-making in accounting, while examining what risks and skill gaps exist as part of a comprehensive study. Using a qualitative, exploratory research design, secondary data sources such as scholarly articles, industry reports, and professional publications from 2017 to 2024 were employed. The researcher aimed for maximum clarity through AI's systemic inclusion into accounting. Key findings show that AI dramatically So AI is dramatically better than humans at accuracy and speed in financial reporting. Auditing becomes easier and more accurate, compliance swifter and less costly for firms unable to bend speed rules. As well, accountants in this new environment are, above all, knowledge workers rather than data-entry personnel. However, there are also challenges. To begin with, data protection worries that AI can give us biased algorithms (especially when it comes to credit scores or lending decisions). Ethically, it poses risks. And on the whole, it’s going to take substantial investment in infrastructure and retraining of the workforce if we’re going to pull this off right. The report ends with proposed recommendations, including investments in secure and scalable AI systems; ongoing training for accountants; and sturdy ethical governance principles in place to ensure accountable AI integration. As AI continues to refine our profession, a balanced approach that combines innovation and responsibility is vital for continuing success. Key Words: Artificial Intelligence (AI) in Accounting, Financial Automation, and Accounting Technology Integration.