THE IMPACT OF ARTIFICIAL INTELLIGENCE ON THE TONE OF ACCOUNTING DISCLOSURE IN FINANCIAL REPORTS AND ITS REFLECTION ON AUDIT QUALITY

Abstract

This research seeks to investigate the influence of advanced artificial intelligence (AI) applications on the tone of accounting disclosures within financial reporting. The AI applications explored include big data analytics, machine learning, and financial robotics. A robust research methodology was employed, comprising the design of questionnaires for financial industry professionals and interviews with experts in both artificial intelligence and accounting. Data necessary for the study’s objectives and recommendations were gathered through these instruments. The findings of this research underscore the significance of enhancing understanding and awareness regarding the role of technology in advancing accounting practices, particularly in terms of improving the quality of financial reporting. This study contributes to the existing body of literature by introducing a novel concept concerning the impact of AI applications on accounting disclosure, highlighting their role in fostering transparency and financial accountability. The results provide valuable insights for researchers and financial and accounting institutions regarding using technologies to optimize systems performing a competitive edge in the financial services sector.