Introduction to AI in Accounting and Finance

Sunil Kumar (), Atreya ‘Chuck’ Chakraborty () and Poojan Patel ()
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Sunil Kumar: Roger Williams University
Atreya ‘Chuck’ Chakraborty: University of Massachusetts System
Poojan Patel: Bryant University

Chapter 1 in Prompt Engineering for Accounting and Finance, 2026, pp 1-36 from Springer

Abstract: Abstract This chapter introduces Artificial Intelligence (AI) as a transformative force in accounting and finance, outlining the profession’s evolution from rule-based systems to adaptive, data-driven technologies. It explains key concepts—including machine learning, generative AI, and large language models—and distinguishes AI from traditional software through its ability to learn, recognize patterns, and generate analytical narratives. Through applied professional examples, the chapter demonstrates how AI enhances auditing, financial reporting, forecasting, compliance, and fraud detection. A central contribution is the positioning of prompt engineering—the structured design of AI instructions—as a critical professional skill that connects domain expertise with AI capability. The chapter argues that AI literacy is both a technological and ethical imperative: while AI improves efficiency and insight generation, professionals remain responsible for validating outputs, protecting confidentiality, and maintaining accountability in financial decision-making.

Keywords: Artificial Intelligence in Accounting; Generative AI; Machine Learning; Prompt Engineering; AI in Auditing; Financial Reporting Technology; Ethical AI Governance (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-032-11195-1_1

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DOI: 10.1007/978-3-032-11195-1_1

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