This is a summary of the book titled “Artificial Intelligence in Accounting, Auditing and Finance” written by Michael Adelowotan and Collins Leke and published by Springer in 2025. This book covers the concepts and applications for AI in financial realm, through real world case studies and explanations in auditing, taxation, risk management and financial forecasting. AI transforms finance through automation, real-time analysis and predictive power. While it can bring about inequity in insights from data organization and compartmentalization, its speed, accuracy and efficiency is unmatched. Especially when combined with traditional methods, its predictive capability can unlock the next level of insights. It does come with challenges and require workforce upskilling.
Artificial intelligence has ushered in the Fourth Industrial Revolution within the financial domain, reshaping the landscape of accounting, auditing, and corporate finance. Adelowotan and Leke trace this transformation from the era of manual bookkeeping to modern cloud-based platforms, highlighting AI's leap beyond mere automation. Unlike past tools, AI brings cognitive abilities—pattern recognition, adaptive learning, and predictive analysis—that fundamentally redefine financial decision-making.
The book explores AI’s impact across financial functions, beginning with accounting. Here, machine learning algorithms automate tasks like transaction categorization and real-time financial reporting. Intelligent document processing extracts and verifies information seamlessly, replacing tedious manual input with high-speed precision. In auditing, AI introduces predictive models capable of continuous data monitoring, anomaly detection, and automated evidence verification—enhancing both the depth and reliability of audit conclusions. Tools like EY’s Helix and PwC’s Aura demonstrate how audit workflows are increasingly intertwined with AI systems.
Financial trading experiences a parallel evolution. Deep learning and reinforcement learning help optimize trade strategies and forecast market movements based on complex indicators and sentiment analysis. This approach enables traders to respond more dynamically to shifting conditions, furthering the edge that AI provides.
Beyond operational efficiency, AI enables a more strategic role in financial analysis. With real-time processing of vast and varied datasets, AI transforms financial reporting into a forward-looking exercise. Algorithms detect subtle trends and risks—like signs of distress or inconsistencies in strategic narratives—while freeing analysts to focus on high-level interpretation. Yet this comes with caveats. Decision-making becomes centralized, favoring those who control data and systems. “Black box” models—opaque algorithms lacking transparency—challenge accountability and raise ethical concerns about bias and fairness.
In corporate finance, AI improves forecasting for capital budgeting, optimizes funding strategies, and informs dividend policies. Major firms such as JPMorgan Chase, GE, and BlackRock already rely on AI platforms for planning and risk management. However, overdependence on AI poses risks, including diminished human judgment, data privacy concerns, and potential algorithmic bias.
Time series forecasting benefits from advanced AI techniques such as neural networks and LSTMs, which capture complex patterns over time. These models offer promising improvements over traditional methods, although their success hinges on tailored implementations. Without proper adaptation, complexity may hinder performance, highlighting the need for thoughtful integration.
The authors don’t shy away from the profession’s challenges. Automation threatens traditional accounting roles, creating a pressing need for upskilling and digital literacy. Ethical risks—bias, privacy, and opacity—demand stronger oversight and a commitment to fairness. The book’s central message is clear: AI offers transformative tools, but financial professionals must evolve alongside the technology, embracing interdisciplinary skills and ethical frameworks to truly unlock its potential.
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