EFFECT OF ARTIFICIAL INTELLIGENCE ON QUALITY OF FINANCIAL REPORTING OF SELECTED MINISTRIES IN EKITI STATE, NIGERIA

Abstract

This study examined the effect of Artificial Intelligence (AI) on the quality of financial
reporting in selected ministries in Ekiti State, Nigeria. The study adopted a descriptive
survey design, and data were collected from 80 accounting and finance staff through
structured questionnaires. The findings showed that the level of AI adoption in the ministries
is moderate, as more attention is given to staff training and infrastructure development than
to the full use of AI in daily accounting activities. The study also revealed that AI has
improved the accuracy, timeliness, transparency, and reliability of financial reports by
reducing errors, improving auditing processes, and making report preparation faster and
clearer. However, the effective use of AI is limited by challenges such as inadequate
infrastructure, insufficient funding, limited technical skills, resistance to change, and data
security concerns. The study concluded that AI positively influences financial reporting
quality in the selected ministries. It therefore recommended improved investment in AI
infrastructure, continuous staff training, adequate funding, stronger data security policies,
and gradual integration of AI into routine accounting operations to improve public sector
financial reporting.