Artificial Intelligence and Blockchain for Real-Time Financial Reporting: Automating Accounting, Reducing Fraud, and Enhancing Reliability
0 viewsAbstract
Through this study, I examine how we can revolutionize traditional financial reporting processes by integrating blockchain technology, automation, and artificial intelligence (AI) into a single model. Conventional accounting is still characterized by periodic closings, manual reconciliation and retrospective auditing that are known to introduce delays, human errors, and increased exposure to fraud. This study verifies whether a reporting system involving technology can be used to enhance productivity, accuracy and reliability within such limitations. I operated two accounting systems in parallel during a three-month comparative case study with one medium- sized e-commerce company: a traditional manual reporting system and a technology-powered platform where AI automation was enforced on a permissioned blockchain ledger. I analyzed five common indicators of performance (Bizri et al., 2021) which are monthly closing time, rate of transaction error, audit hours, accuracy of fraud detection and cost of reporting which were determined on approximately 10,000 transactions. The results indicate that there is a remarkable improvement of AI-blockchain environment. There was an increase of 29 % in the accuracy of fraud detection, a reduction of 46 in the auditing hours, time saved in the monthly closing of books, the error rates were to be reduced by 76 percent and the costs of reporting were to be reduced by 39. The implications of these findings are as follows: with the help of real-time processing, reinforcing internal controls, and enhancing transparency, combining AI and blockchain can positively influence the financial reporting considerably. But the first incurred expenses and uncertainty on the part of regulations are still major factors to mass adoption.
Keywords
Accounting Automation, Artificial Intelligence (AI), Blockchain Technology, Financial Reporting, Fraud Detection