The Role of Artificial Intelligence in Improving the Efficiency and Accuracy of Local Government Financial Reporting: A Systematic Literature Review

Digital transformation has driven the use of artificial intelligence (AI) in local government financial reporting to improve efficiency, transparency, and accountability. This study employs a systematic literature review (SLR) approach to analyze 20 relevant articles, identifying common characteristics of publications, research focus, methods, AI technologies used, key findings, research gaps, and future research directions. The analysis results show the dominance of machine learning and expert systems in detecting fraud, predicting financial performance, and improving reporting accuracy. However, limitations in infrastructure, regulations, and system integration across government agencies remain significant challenges to implementing AI in the public sector. This study proposes the need for the development of practical implementation models, collaboration between academics, government, and technology developers, as well as the formulation of policies that support ethical and responsible AI governance. These findings make a significant contribution to shaping the strategic direction of AI utilization to strengthen local government financial reporting systems sustainably.

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Publication Details

Journal
Journal of risk and financial management
Published
2025-10-27
DOI
https://doi.org/10.3390/jrfm18110601
Citations
2
Primary Topic
Financial Reporting and XBRL
Type
article
Field-Weighted Citation Impact
4.57

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article

The Role of Artificial Intelligence in Improving the Efficiency and Accuracy of Local Government Financial Reporting: A Systematic Literature Review

Baso Amir, Asharin Juwita Purisamya, Noor Ismawati Jaafar, Audrey Michelle Wenny Yolanda et al.
2 citations
Journal of risk and financial management
Financial Reporting and XBRL
4.57
article

The Role of Artificial Intelligence in Improving the Efficiency and Accuracy of Local Government Financial Reporting: A Systematic Literature Review

Baso Amir, Asharin Juwita Purisamya, Noor Ismawati Jaafar, Audrey Michelle Wenny Yolanda, Darmawati Darmawati, Haniek Khoirunnissa Baja, Muhammad Reza Pahlevi Juanda
article en
2 citations

Abstract

Digital transformation has driven the use of artificial intelligence (AI) in local government financial reporting to improve efficiency, transparency, and accountability. This study employs a systematic literature review (SLR) approach to analyze 20 relevant articles, identifying common characteristics of publications, research focus, methods, AI technologies used, key findings, research gaps, and future research directions. The analysis results show the dominance of machine learning and expert systems in detecting fraud, predicting financial performance, and improving reporting accuracy. However, limitations in infrastructure, regulations, and system integration across government agencies remain significant challenges to implementing AI in the public sector. This study proposes the need for the development of practical implementation models, collaboration between academics, government, and technology developers, as well as the formulation of policies that support ethical and responsible AI governance. These findings make a significant contribution to shaping the strategic direction of AI utilization to strengthen local government financial reporting systems sustainably.

Journal of risk and financial managementVol. 18(11)
University of Malaya (MY), Hasanuddin University (ID)
Universitas Hasanuddin
Openalex Percentile: Top 5%
Financial Reporting and XBRL
4.57
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The Role of Artificial Intelligence in Improving the Efficiency and Accuracy of Local Government Financial Reporting: A Systematic Literature Review — Baso Amir, Asharin Juwita Purisamya, et al. · Journal of risk and financial management (2025) | TGRS Research Map | TGRS