Artificial intelligence and the quality of accounting information in Palestinian industrial companies

Abstract

Purpose This study aims to identify the impact of adopting different techniques of artificial intelligence including (expert systems, machine learning, neural networks and algorithms) in improving the quality of accounting information characteristics such as; appropriateness, faithful representation and verifiability in Palestinian industrial enterprises. Design/methodology/approach Employees from 13 companies registered on the Palestine Stock Exchange for 2023 were selected. Moreover, the sample included 326 randomly chosen participants. A questionnaire was distributed to participants to collect data, and a descriptive-analytical approach was followed to achieve the study’s aim and examine its hypotheses. Findings The results showed that the use of artificial intelligence techniques (expert systems, machine learning, neural networks and algorithms) has a positive effect on improving the quality of accounting information characteristics (relevance, faithful representation and verifiability). Expert systems, neural network applications and algorithms contribute to developing solutions to various problems in industrial companies; discovering fraudulent practices in financial statements; and obtaining more accurate, faster and more reliable results. Machine learning also links the company’s systems together simultaneously and in an integrated and effective manner. Research limitations/implications The research relied on the industrial sector only because expanding society is difficult due to the general conditions in Palestine, and the results may vary between different sectors due to the nature of their work and activity. Practical implications Industrial companies’ efforts to benefit from artificial intelligence applications in their work increase the quality of accounting information, which in turn reflects the company’s real situation and helps in making the necessary decisions efficiently and effectively. Originality/value This study contributes to directing the attention of financiers and accountants working in Palestinian industrial companies to the importance of applying artificial intelligence techniques to ensure the highest quality characteristics of accounting information through the preparation of accounting programmes that rely on artificial intelligence to operate, thus achieving the maximum degree of advantage in compiling financial data from its sources, operation and conversion into useful financial information for its users.