Artificial Intelligence and Financial Reporting Quality in Nigerian Deposit Money Banks: An Empirical Analysis

Abstract

This study examines the impact of Artificial Intelligence (AI) on financial reporting quality in Nigerian Deposit Money Banks (DMBs). The rapid advancement of digital technologies has transformed accounting systems, auditing procedures, and financial reporting practices across the banking sector. Despite increasing adoption of AI-driven accounting systems, empirical evidence regarding their influence on financial reporting quality in Nigeria remains limited. This study adopts a quantitative research design using secondary data obtained from annual reports of selected Nigerian Deposit Money Banks between 2018 and 2025. The study employs descriptive statistics, correlation analysis, and multiple regression analysis to investigate the relationship between AI adoption indicators and financial reporting quality proxies. Findings reveal that AI adoption significantly improves reporting accuracy, timeliness, transparency, and audit quality among Nigerian banks. The study also identifies challenges such as cybersecurity threats, high implementation costs, inadequate technical expertise, and regulatory limitations. The study concludes that Artificial Intelligence has substantial positive effects on financial reporting quality in Nigerian Deposit Money Banks. The study recommends increased investment in 1.0 Introduction AI infrastructure, regulatory reforms, digital accounting education, and enhanced cybersecurity frameworks.