Effect of artificial intelligence on transparency and efficiency in government accounting

Abstract

This study examined the impact of artificial intelligence on transparency and efficiency in government accounting in Nigeria. The specific objectives were to evaluate the extent to which AI expert systems enhance transparency, assess their effect on accounting efficiency, and investigate how implementation challenges influence efficiency in public sector operations. A survey research design was employed, targeting employees involved in accounting, finance, and administrative functions across federal public institutions, with a sample size of 400 respondents selected using snowball sampling from population of 720,000 federal workers. Data were collected through a structured questionnaire and analyzed using simple linear regression to test the research hypotheses at a 5% significance level. The findings revealed that: AI expert systems have a positive and significant effect on transparency in government accounting processes in Nigeria (β = 0.817, p = 0.000); AI expert systems have a positive and significant effect on the efficiency of government accounting operations (β = 0.558, p = 0.000); challenges in implementing AI expert systems negatively and significantly affect the efficiency of government accounting operations (β = -0.819, p = 0.000). The study concluded that adopting and properly integrating AI expert systems can strengthen financial management in public institutions, though addressing implementation challenges is essential for maximizing their benefits. Therefore, the study recommended that the Office of the Accountant General of the Federation should actively expand the adoption of AI expert systems across all federal public institutions. This will ensure that financial records are more accessible and verifiable, reducing opportunities for misreporting and improving accountability in government operations.

Keywords: Artificial Intelligence, Transparency, Efficiency, Government Accounting.