Adoption of Artificial Intelligence in Accounting Practices: Opportunities, Challenges, and Ethical Issues (Asian Journal of Management and Commerce)

Summary

• The proportion of accounting firms planning to invest and upgrade in AI increased from 48% in 2023 to 57% in 2025 to 64% in 2025.p.1
• A bibliometric study evaluated 261 Scopus-indexed papers focusing on the intersection of AI, forensic accounting, and fraud detection.p.1
• Academic research connecting artificial intelligence to forensic accounting and fraud detection has experienced rapid growth since 2017.p.1
• Machine learning models and natural language processing tools assist investigators by scanning millions of transactions and analyzing deceptive language in emails.p.1
• Over-reliance on automated tools creates automation bias, leading accountants to accept AI analysis without maintaining necessary professional skepticism.p.2
• Effective governance requires explainable AI, clear audit trails, and human-in-the-loop oversight to ensure reliable and legally defensible accounting practices.p.3

Key insights

1. AI tools enhance fraud detection by serving as a mediator between forensic accounting practices and detection outcomes.p.1
2. Algorithm aversion leads professionals to resist algorithmic recommendations even when AI models outperform human auditors.p.1
3. Algorithmic bias stemming from historical training data can trigger improper risk assessments that target innocent individuals or institutions.p.2
4. The combination of human manipulation and AI tools makes tracing the exact origins and accountability of financial fraud increasingly complex.p.2
5. Black-box AI systems present new rationalization opportunities for bad actors when organizational governance is weak.p.2
6. Practitioners exposed to minor AI mistakes may completely reject future algorithmic recommendations, impeding fraud detection efforts.p.2
7. Organizational culture and ethics strongly influence whether financial professionals accept or reject AI outputs in high-stakes investigations.p.2
8. Continuous professional training in AI ethics and forensic psychology is essential to mitigate cognitive biases among accountants.p.3