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.
Authors
- Baso Amir
- Asharin Juwita Purisamya
- Noor Ismawati Jaafar (ORCID: https://orcid.org/0000-0002-8604-6004)
- Audrey Michelle Wenny Yolanda (ORCID: https://orcid.org/0000-0002-4929-5706)
- Darmawati Darmawati (ORCID: https://orcid.org/0000-0003-0536-3225)
- Haniek Khoirunnissa Baja (ORCID: https://orcid.org/0009-0005-7682-4123)
- Muhammad Reza Pahlevi Juanda
Institutions
- University of Malaya (MY)
- Hasanuddin University (ID)
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
Funders
- Universitas Hasanuddin