Harnessing AI: Transforming Social and Environmental Accountability in Accounting Practices

Roshidah Safeei (), Marzlin Marzuki, Sazilah Mohd Saad, Abd Hadi Mustaffa, Norfarah Syahirah Mohd Fadzilah and Nor Adilla Tajarahim
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Roshidah Safeei: Universiti Teknologi MARA, Faculty of Accountancy
Marzlin Marzuki: Universiti Teknologi MARA, Faculty of Accountancy
Sazilah Mohd Saad: Universiti Teknologi MARA, Faculty of Accountancy
Abd Hadi Mustaffa: Management and Science University, Faculty of Business Management and Professional Studies
Norfarah Syahirah Mohd Fadzilah: Tunku Abdul Rahman University of Management and Technology, Faculty of Accounting, Finance and Business
Nor Adilla Tajarahim: Tunku Abdul Rahman University of Management and Technology, Faculty of Accounting, Finance and Business

A chapter in Proceedings of the 3rd International Conference on Business, Finance, Management and Economic (BizFAME 2024), 2025, pp 13-25 from Springer

Abstract: Abstract As global standards on sustainability tighten, companies are being held responsible for their economic, environmental, and social performance. Conventional social and environmental accounting processes are disjointed and ineffective, unable to communicate the complexity and magnitude of sustainability reporting. This study explores how AI can improve social and environmental accounting and accountability processes. This subject’s relevance has become increasingly important as organisations and stakeholders begin to look for ways to report data in an accurate, transparent and integrated manner to enable timely decision making and organisational accountability. Although ESG frameworks have been advancing, a critical gap remains in the usability of financial and non-financial data through scalable and trusted technologies. This paper seeks to quantify the role of AI as a tool for enriching veracity and transparency of sustainability reports. Utilising a qualitative content analysis approach, the study reviews the recent literature, and case-based insights to highlight identifying potential applications and implications of AI in sustainability reporting domain. AI in accounting is now capable of driving efficiency by substantially reducing the time it takes to complete complex data processing tasks, minimising human error, and enabling real-time evaluation of environmental and social impacts. These insights expand theoretical perspectives on organisational efficiency and accountability by positioning AI as a trigger for more responsive and inclusive reporting systems. From a practical standpoint, the study highlights AI’s potential to democratise access to sophisticated reporting tools as well as providing guidance for policymakers in developing equitable AI governance frameworks. Future studies must investigate cross-sectoral implementations, sustainable effects of AI integration, and comprehensive ethical and regulatory frameworks.

Keywords: Artificial Intelligence; Social and Environmental Accountability; Sustainability Reporting; AI-Driven Accounting (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-827-1_3

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DOI: 10.2991/978-94-6463-827-1_3

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