The Ethical Dilemma of AI-Driven Accounting: Balancing Automation and Professional Judgment

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The Ethical Dilemma of AI-Driven Accounting: Balancing Automation and Professional Judgment

Chukwuani, V. N. PhD
Department of Accountancy, Enugu State University of Science and Technology, Nigeria

Abstract

This study explores the ethical challenges associated with the integration of artificial intelligence (AI) into the accounting profession, focusing on issues such as algorithmic bias, decision transparency, and the balance between automation and professional judgment. As AI technologies are increasingly adopted in accounting, they offer potential for improved efficiency and decision-making. However, their use raises significant concerns regarding fairness, accountability, and the integrity of financial reporting. One primary concern is algorithmic bias, where AI systems may perpetuate existing prejudices in the data, resulting in unfair or discriminatory financial decisions. The “black-box” problem further complicates the issue, as the lack of transparency in AI decision-making processes makes it difficult for accountants, auditors, and regulators to validate the accuracy and fairness of AI-generated outcomes. Additionally, the study discusses the enduring role of human expertise in ensuring financial integrity, emphasizing that while AI can automate processes, human judgment remains essential in interpreting results and making ethical decisions. The research also highlights the importance of governance frameworks, ethical safeguards, and regulatory oversight in mitigating the risks associated with AI implementation in accounting. The study proposes strategies for the ethical integration of AI, including the development of explainable AI models, the incorporation of AI ethics into accounting education, and the establishment of robust regulatory standards to ensure AI systems are transparent, accountable, and aligned with ethical principles. Ultimately, this research underscores the need for a collaborative approach in which AI complements rather than replaces human expertise, ensuring the ethical and responsible application of AI in accounting practices.

Keywords: Artificial Intelligence; Ethical Challenges; Accounting Automation; Algorithmic Bias; Decision Transparency

IJFEA 5(2)1-9Download
Cite as:
Chukwuani, V. N. (2025). The Ethical Dilemma of AI-Driven Accounting: Balancing Automation and Professional Judgment. International Journal of Financial Economics and Accounting, 5(2), 1-9. https://doi.org/10.5281/zenodo.15141882   © 2025 The Author(s). International Journal of Financial Economics and Accounting published by ACADEMIC INK REVIEW.
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