Citation :

Piyushkumar Patel, 2025. "The AI-Driven Revolution in Finance: Transforming Accounting, Taxation, and Risk Management" ESP International Journal of Advancements in Computational Technology (ESP-IJACT)  Volume 3, Issue 1: 163-172.

Abstract :

Artificial Intelligence (AI) is driving a profound transformation across the financial sector, fundamentally changing how businesses manage accounting, taxation, and risk. From streamlining complex workflows to enhancing decision-making, AI has become an indispensable tool for financial professionals seeking to improve accuracy and efficiency. By automating repetitive tasks such as data entry, reconciliations, and report generation, AI reduces human error and allows accountants to focus on more strategic initiatives. In taxation, AI-powered systems can analyze vast amounts of data to optimize tax planning, identify deductions, and ensure compliance with evolving regulations. This enhances accuracy and minimizes the risk of audits and penalties. AI’s capabilities in fraud detection are particularly revolutionary, as machine learning algorithms can detect unusual patterns and flag anomalies in real-time, strengthening defences against financial crime. In risk management, AI enables predictive analytics that assess potential threats and market shifts, empowering organizations to make proactive decisions. Auditing has also been transformed, with AI tools capable of analyzing entire data sets rather than relying on samples, offering deeper insights and more comprehensive evaluations. This shift enhances transparency and trust in financial reporting. As AI continues to evolve, it fosters a more agile and responsive financial environment, allowing firms to adapt to regulatory changes and economic fluctuations more easily. However, the integration of AI is not without challenges. Organizations must navigate issues related to data privacy, ethical concerns, and the need to upskill employees to work alongside AI systems. Despite these hurdles, the potential benefits of AI far outweigh the challenges, making it a cornerstone of modern financial practices. By embracing AI, businesses can unlock new growth, resilience, and innovation levels, reshaping the financial landscape for years to come.

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Keywords :

AI-powered bookkeeping, AI financial analysis, automated expense management, AI in financial auditing, AI for tax optimization, financial anomaly detection, AI-driven portfolio management, sentiment analysis in finance, AI for cash flow forecasting, AI in banking security, credit scoring algorithms, AI in asset management, personalized financial services with AI, fintech innovation, AI in hedge funds, AI-based financial advisors, AI in loan underwriting, smart invoicing with AI, AI-powered reconciliation, predictive financial modeling, AI for liquidity management, automated financial reporting, AI in mergers and acquisitions, AI in treasury management, data-driven risk mitigation, AI in payment processing.