THE ROLE OF ARTIFICIAL INTELLIGENCE (AI) IN TRANSFORMING SMES ACCOUNTS PRACTICE IN PORT HARCOURT

Abstract

This study examined the role of Artificial Intelligence (AI) in transforming accounting practices among Small and Medium-sized Enterprises (SMEs) in Port Harcourt. The research focused on how AI adoption influences accounting operations and the extent to which AI-driven tools enhance efficiency and accuracy. A descriptive research design was employed, and the population comprised 1,200 registered SMEs from retail, manufacturing, and service sectors. A stratified random sampling technique was used to select 150 SMEs. Data were collected using a validated structured questionnaire administered to owners, managers, and accountants. The data were analyzed using descriptive statistics such as mean and standard deviation, while multiple regression analysis was applied to test relationships among variables. The findings revealed that AI adoption significantly improved accounting workflows, reporting accuracy, and decision-making. Additionally, AI-driven tools enhanced accounting efficiency by automating repetitive tasks, reducing errors, and providing real-time financial insights. These findings supported previous research emphasizing the role of AI in improving transparency, cost efficiency, and competitiveness in SMEs. The study concluded that integrating AI into SME accounting practices is essential for fostering innovation, ensuring regulatory compliance, and sustaining growth in a rapidly evolving digital economy. It recommended increased investment in AI-powered solutions, capacity-building programs for accountants and managers, and the development of affordable AI platforms tailored to SMEs’ needs. This research contributes to literature on AI-driven digital transformation in financial management and offers valuable insights for policymakers, technology providers, and business owners.