Effect of Artificial Intelligence on Accounting Practice in Nigeria
TL;DR
The study concludes that Artificial Intelligence represents the future of accounting practice in Nigeria and recommends increased investment in digital infrastructure, continuous professional development for accountants, regulatory reforms, curriculum modernization in tertiary institutions, and stronger collaboration among professional accounting bodies, policymakers, and technology developers to maximize the benefits of AI while minimizing its associated risks.
Abstract
Artificial Intelligence (AI) has become one of the most transformative technological innovations influencing accounting practice worldwide. The integration of AI technologies into accounting functions has significantly enhanced the efficiency, accuracy, transparency, and reliability of financial reporting, auditing, taxation, management accounting, and forensic accounting. In Nigeria, the increasing adoption of AI by accounting firms, financial institutions, multinational corporations, and government agencies has reshaped traditional accounting processes by automating repetitive tasks, improving analytical capabilities, and strengthening fraud detection mechanisms. Despite these advancements, several challenges continue to hinder the effective implementation of AI in accounting practice, including inadequate digital infrastructure, shortage of AI-skilled accounting professionals, cybersecurity threats, high implementation costs, ethical concerns, poor regulatory frameworks, and resistance to technological change. This article examines the effect of Artificial Intelligence on accounting practice in Nigeria by reviewing current conceptual, theoretical, and empirical literature. The study adopts a quantitative survey research design using primary data to demonstrate the relationship between AI adoption and accounting performance indicators. The sample size is 400 respondents out of a population of 788. The findings reveal that AI significantly improves accounting efficiency, financial reporting quality, audit effectiveness, fraud detection capability, decision-making processes, and organizational productivity. The study concludes that Artificial Intelligence represents the future of accounting practice in Nigeria and recommends increased investment in digital infrastructure, continuous professional development for accountants, regulatory reforms, curriculum modernization in tertiary institutions, and stronger collaboration among professional accounting bodies, policymakers, and technology developers to maximize the benefits of AI while minimizing its associated risks.