Does AI Adoption Redefine Financial Reporting Accuracy, Auditing Efficiency, and Information Asymmetry?
Saeed Awadh Bin-Nashwan, Jackie Zhanbiao Li, HaiChang Jiang, Anas Rasheed Bajary, & Muhammad M. Ma'aji (2025). Does AI adoption redefine financial reporting accuracy, auditing efficiency, and information asymmetry? An integrated model of TOE-TAM-RDT and big data governance. Computers in Human Behavior Reports,17(100572).
This study aims to empirically explore what shapes AI adoption among AAFs and what its potential role is in financial reporting accuracy, auditing efficiency, and information asymmetry. By applying a validated model of TOE-TAM-RDT and analyzing it using PLS-SEM, the findings are that AI adoption was shaped by competitive pressure, vendor ecosystem, top management support, relative advantage, AI readiness, and innovation climate. The adoption of AI-driven systems among AAFs has exerted a positive impact on financial reporting accuracy and auditing efficiency, while having a negative impact on information asymmetry. Results further reveal a significant moderating effect of big data governance, demonstrating that proper management, quality, and ethical use of data within AAFs can enhance the benefits of AI adoption, thereby improving financial reporting accuracy and auditing efficiency and mitigating information asymmetries between AAFs and stakeholders. These outcomes not only advance scholarly conversations on AI adoption in the financial and accounting landscape but also deliver actionable strategies for stakeholders to maximize the benefits of AAFs from this emerging revolutionary technology.