A PROPOSAL ON:

THE IMPACT OF ARTIFICIAL INTELLIGENCE ON

ACCOUNTING INFORMATION SYSTEM IN NIGERIA
(A CASE STUDY OF GUARANTEE TRUST BANK PLC)

INTRODUCTION

1.1 Background to the Study

The automation wave of the 21st century is transforming various sectors, with
accounting practices at the forefront. As our world becomes increasingly tech-
centric, it’s essential to contemplate how evolving technologies are shaping our
lives (Bashir & Kalu, 2024). One significant player in this landscape is artificial
intelligence (AI), which is redefining the mechanics of the working world. AI is
not merely streamlining financial management; it is revolutionizing the entire
accounting lifecycle. Nowadays, software systems manage comprehensive
accounting processes, from recording to analyzing transactional data, leading to
a decreased reliance on manual data entry (Francis, 2019). The integration of AI
in the accounting sector has been ongoing for over 25 years, primarily impacting
financial reporting and auditing (Greenman, 2019). Its ability to deliver cost
savings and enhance operational efficiencies is gradually reshaping the operations
of financial institutions, with expectations that it will eventually handle core
functions (Dilek, 2020).

Artificial intelligence (AI) has advanced significantly in recent years, particularly

in relation to the accounting industry, which has shifted its emphasis from manual
data entry with paper and pencil to computerized data entry with software
(Nickerson, 2019). Accounting firms should exercise caution when it comes to
monitoring the costs and updates associated with intelligent systems in order to
minimize risk and uncertainty, even though the implementation of AI may boost
organizational efficiency (Gotthardt et al., 2019). Nonetheless, it appears that
different nations and even businesses within the same nation have different
adoption processes for AI at the moment. (Gotthardt et al., 2019; Nickerson,
2019). This raises some doubts about the usefulness of this technology and allows
companies to have concerns about whether adopting AI is worth it or not
(Nickerson, 2019).

Artificial intelligence (AI) is fundamentally about leveraging computational tools

to tackle tasks traditionally thought to require human intelligence. As outlined by
the Financial Stability Board (FSB) in 2017, the aim of this experimental field in
computer science is to create machines that can perform a wide range of functions
using their own form of intelligence. Dilek, Çakır, and Aydın (2020) highlight
that AI encompasses impressive elements like computational intelligence, neural
networks, and intelligent agents, establishing itself as a crucial aspect of the tech
industry. It effectively addresses some of the most challenging problems in
computer science. The core philosophy behind AI has always involved
identifying increasingly complex tasks for humans and demonstrating how
computers can take on these challenges, either through sheer processing power or
in ways that mimic human behavior (Bashir & Kalu, 2024).

According to a study conducted by Lombardo in 2019, the true strength of a

computer lies in its intelligence, adaptability, connectivity, and complexity, rather
than simply its energy efficiency. With the rise of artificial intelligence,
accountants have broadened their perspective beyond the traditional confines of
financial statements. They are now leveraging an array of textual data from social
media, video recordings, images, and sensor information, like GPS and RFID
data. By merging these insights with standard accounting and financial data, they
enhance their analytical capabilities. AI technology enables accountants to
automate numerous tasks, including reviewing source documents like bank
checks, deposit slips, and sales invoices, processing various paperwork, analyzing
conference calls, emails, press releases, and news, as well as extracting valuable
metadata from these sources. This additional information can serve as crucial
support for conventional financial attributes (Bashir & Kalu, 2024). These
features support the comprehensive task of financial statement analysis. In the
process of analyzing financial reports, the machine recognizes every account and
its balance, automatically connects these figures to the relevant supporting
documentation, and makes it possible for accountants to spot any irregularities
(Issa, 2018).

1.2 Statement of the Problem

Recent innovations in artificial intelligence have led to the development of robots

capable of handling accounting software tasks and improved expert systems. This
wave of new technology is greatly influencing the way businesses operate,
reshaping the overall business landscape. Reports suggest that these
advancements may disrupt the work of licensed accountants. As Yudkowsky
(2018) points out, one of the largest risks arises when individuals prematurely
assume they fully grasp the implications of artificial intelligence. Today, AI is
integrated into nearly every aspect of accounting operation, leading professionals
to question the future relevance of human accountants in their organizations.

A 2015 study from the University of Oxford found that when machines take over
data analytics and number crunching, accountants have a 95% chance of losing
their jobs (Griffin, 2018). However, as noted by (Greenman, 2019), this same
report found that while some jobs are created, others are eliminated as technology
advances. More precisely, research from the Association of Chartered Certified
Accountants (ACCA, 2019) demonstrates that the challenges of gradually de-
skilling accountants are brought on by smart systems, bots, and artificial
intelligence tools. More artificial intelligence research has highlighted how
technological advancements could lead to a revaluation of new skills and a
reexamination of what constitutes “work”. If this isn’t looked into, there could be
a rise in social unrest and increased income inequality as well as mass
unemployment. Dai and Vasarhelyi (2018) projected that by 2025, increasing
automation and technological advancement would replace humans in the
workforce. This study endeavors to explore the relationship between artificial
intelligence and accounting practices in Nigeria, drawing from the
aforementioned experiences.

1.3 Objectives of the Study

The main objective of this study is to examine the impact of artificial intelligence
(AI) on accounting information systems (AIS) in Nigeria, a case study of
Guarantee Trust Bank Plc. However, the specific objectives include:

i. Ascertain the effect of artificial intelligence on the operational efficiency and

effectiveness of accounting information systems in Nigeria.

ii. Examine the role of artificial intelligence in enhancing the accuracy and
timeliness of financial data processing in Nigeria.

iii. Determine the relationship between AI-driven accounting information

systems implementation and the quality of financial reporting in Nigeria.

1.4 Research Questions

The study would attempt to provide answers to the following questions:

i. What is the effect of artificial intelligence on the operational efficiency and

effectiveness of accounting information systems in Nigeria?

ii. What is the role of artificial intelligence in enhancing the accuracy and
timeliness of financial data processing in Nigeria?

iii. What is the relationship between AI-driven accounting information systems

implementation and the quality of financial reporting in Nigeria?
1.5 Research Hypotheses

From the objectives of this study, the following hypotheses have been formulated:

H₀₁: Artificial Intelligence has no significant impact on the operational efficiency

of Accounting Information Systems in Nigeria.

H₀2: Artificial Intelligence has no significant impact in enhancing the accuracy

and timeliness of financial data processing in Nigeria.

Ho3: Artificial Intelligence into accounting information systems has no

significant relationship with the quality of financial reporting in Nigeria.

1.6 Significance of the Study

This study is significant as it provides insights into how artificial intelligence is

transforming accounting systems in Nigeria. It will benefit accounting
professionals, business owners, and policymakers by highlighting the benefits
and challenges of artificial intelligence in accounting information systems. The
study will also serve as a reference for researchers and students interested in
emerging technologies in accounting.

1.7 Scope of the Study

This study focuses on the impact of artificial intelligence on accounting

information systems in Nigeria. It covers selected financial institution that utilize
or adopting AI-based accounting solutions. The study is limited to recent data
between 2019 and 2024 and will rely on primary and secondary data sources to
evaluate the effect of AI on financial reporting, system performance, and related
challenges.
CHAPTER TWO

2.0 LITERATURE REVIEW

The essence of this chapter is to consult and review many literary works written
by different scholar to buttress the validity and authenticity of the work so as to
be able to bring out the gap in knowledge. Therefore, the researcher here will
consult and review textbooks, journals, magazines and possible, extract from
internet facilities.

CHAPTER THREE

3.0 RESEARCH METHODOLOGY

This chapter deals with the various method designed to gather the necessary data
for the study. It will contain sub-heading such as follows;

3.1 Research design

The study will made use of a research design in which journals, internet facilities,
textbooks reviews and questionnaire will be adopted to gather necessary
information.

3.2 Study population

The study population will comprise of randomly selected respondents from the
selected financial institution in Nigeria.

3.3 Sample and Sampling Technique

The simple random sampling will be adopted

3.4 Statistical Tool Applied in Data Analysis

The study will adopt descriptive analysis and hypotheses will be analyzed and
tested using simple linear regression and ANOVA statistical tools.
CHAPTER FOUR

4.0 DATA PRESENTATION AND ANALYSIS

4.1 Data presentation

This chapter will deal with the presentation of data that will be generated from
the questionnaire distributed to randomly selected respondent from the selected
financial institution. In this chapter, hypotheses will be tested and analysed as
appropriate; the data generated will be presented and interpreted into tables of
frequency distribution.

4.2 Testing of hypotheses

The data collected and hypotheses will be analyzed and tested using simple linear
regression and ANOVA statistical tools.

4.3 Limitation of the study

This aspect will deal with the challenges faced during the conduct of the study.

5.0 CHAPTER FIVE

Summary of Findings, Conclusion and Recommendations

This chapter will contain the summary of the whole findings of the research work,
the suggested recommendations and the conclusion based on the findings of the
research work. This chapter will offer the summarized findings of the whole
research work, the recommendations suggested by the researcher in relation to
the findings of this research study and the conclusion reached at the end of the
whole process.