Influence of Artificial Intelligence (AI) Integration on Financial Reporting Quality – the United States and African Business Ecosystem in Focus

Abstract

Evolution of Artificial Intelligence (AI) marks a paradigm shift in the way organizations generate, analyze, and communicate financial reports to the relevant stakeholders. It therefore remains unclear whether the integration of AI-driven technology has an impact on the quality of financial reports in the United States and Africa using Nigeria as a proxy for Africa. The current study, therefore, investigated the Influence of Artificial Intelligence integration on financial reporting quality. Online survey questionnaire was administered among 170 chartered accountants/certified public accountants through their WhatsApp platform. The online survey questionnaires employed a 5-point Likert scale, ranging from 1-Strongly Disagreed (SD), 2-Disagreed (D), 3-Undecided (U), 4-Agreed (A), to 5 Strongly Agreed (SA). A response of 165 was harvested from the survey, which constituted a response rate of 97% and was considered valid for a study of this nature. After removing 5 outliers based on incomplete responses to the overall questionnaire items, 160 responses were ultimately used and analyzed for data validation through ANOVA. The study’s finding was documented with the F-test result which has a value of 642.162 with a p-value of 0.000<0.05. This means that the overall regression results show that the independent variable - AI-powered technology integration, has significant influence on the dependent variable - financial reporting quality in the United States of America and Nigeria. The study therefore concluded that AI-powered technology has significant influence on financial reporting quality by enhancing its accuracy, reliability, tracking of errors and frauds, timely and efficient delivery of financial reports, categorization of transactions, mitigation of potential risks, elimination of information asymmetry, and lastly promotes thematic presentation of modern-day financial reports in the United States of America and Africa. AI-powered technology is therefore recommended for massive deployment in the preparation and presentation of financial reports in order to enjoy the inherent benefits of AI-driven technology in financial reporting.

Keywords: Artificial Intelligence, Large Language Model, Natural Language Processing, Machine Learning Algorithms & Financial Reporting Quality.

DOI: 10.7176/RJFA/16-8-02

Publication date: October 31^st 2025