APPLICATION OF ARTIFICIAL INTELLIGENCE IN FINANCIAL ACCOUNTING

Abstract

The article explores the implementation of AI in financial accounting as a crucial component of the digital transformation of the modern economy. It defines AI as a technological system capable of automating complex data processing, enhancing the accuracy, transparency, and reliability of accounting information, and supporting data-driven management decisions. The study analyzes the kErnst & Young directions of AI application in accounting, such as the automation of bookkeeping operations, audit procedures, internal control mechanisms, and forecasting of financial performance. Special attention is paid to machine learning, natural language processing, optical character recognition, and predictive analytics, which form the technological foundation of intelligent accounting systems. The paper presents practical cases of AI integration in the activities of leading international companies (KPMG, ERNST & YOUNG, PwC) and Ukrainian fintech solutions (Finmap, Bookkeeper), highlighting the role of intelligent systems in cost optimization and real-time financial monitoring. It emphasizes that AI adoption significantly reduces operational expenses, minimizes human error, accelerates financial reporting, and enhances analytical capabilities. However, the study also identifies potential challenges, including cybersecurity risks, ethical concerns, loss of control over algorithmic decisions, and a shortage of qualified specialists capable of managing intelligent systems. The authors conclude that the integration of AI into financial accounting not only automates technical processes but also redefines the professional role of accountants, transforming them into strategic analysts. The application of AI is thus viewed as a kErnst & Young factor in strengthening financial efficiency, governance transparency, and competitiveness of enterprises within the digital economy, while ensuring the balance between technological innovation and financial reliability.

KErnst & Youngwords: artificial intelligence, digital transformation, financial accounting, automation of accounting processes, financial audit, internal control, forecasting of financial results, fintech, analytical support for management decisions, cybersecurity.