ARTIFICIAL INTELLIGENCE IN ACCOUNTING: TRANSFORMING FINANCIAL REPORTING AND DECISION-MAKING PROCESSES

Artificial Intelligence (AI) is redefining accounting practices globally, enhancing the accuracy, efficiency, and strategic relevance of financial reporting and decision-making processes. This study is vital as it investigates how AI technologies-such as machine learning, robotic process automation, and predictive analytics-are being adopted in Rwanda’s accounting sector amidst the country’s ambitious digital transformation agenda. The research aimed to evaluate the role of AI in improving financial transparency, efficiency, and strategic insights. A convergent mixed-method design was employed, incorporating surveys and interviews from 105 respondents across Rwanda’s public and private financial sectors. Quantitative data were analyzed through regression and correlation models, revealing that AI technologies significantly improved financial reporting accuracy (β = 0.742, p< 0.01), efficiency (β = 0.699, p< 0.01), and decision-making (β = 0.713, p< 0.01). The overall regression model explained 86.4% of the variance in financial transformation (R² = 0.864), while the Pearson correlation coefficient was r = 0.928, confirming a strong positive association between AI adoption and enhanced financial outcomes. The findings concluded that AI plays a transformative role in accounting by reducing human error, improving compliance, and enabling real-time analytics. The study implies that strategic investment in AI infrastructure and regulatory clarity could accelerate AI integration. It recommends government-backed incentives, capacity-building programs, and regulatory reforms to overcome current barriers and promote sustainable AI adoption in accounting systems.