Evolving trends in accounting, auditing, and tax practices among U.S. firms: The impact of AI and technological advancements

Adhikari, Prabin and Jnr, Francis Baidoo (2025) Evolving trends in accounting, auditing, and tax practices among U.S. firms: The impact of AI and technological advancements. International Journal of Science and Research Archive, 14 (3). pp. 531-544. ISSN 2582-8185

The integration of artificial intelligence (AI) and technological advancements has significantly transformed accounting, auditing, and taxation practices among U.S. firms. AI-driven automation, machine learning, and blockchain technology have enhanced efficiency, fraud detection, financial accuracy, and compliance monitoring. However, despite these benefits, concerns related to AI ethics, regulatory frameworks, and workforce adaptation persist. This study aims to systematically analyze the evolving trends in accounting, auditing, and taxation, focusing on the impact of AI and technological advancements. It seeks to explore how AI enhances financial processes, identify challenges associated with its adoption, and propose strategies for effective AI integration in financial services. A systematic review methodology was adopted, analyzing peer-reviewed journal articles, industry reports, and empirical studies from 2019 to 2024. Data was extracted, synthesized, and critically examined using thematic analysis and meta-literature review techniques. The study reveals that AI-driven automation improves financial accuracy, enhances fraud detection, and streamlines tax compliance. However, it also identifies concerns regarding data security, algorithmic bias, regulatory challenges, and workforce reskilling needs. AI presents significant opportunities for accounting efficiency, but its implementation must be carefully managed to mitigate risks and ethical concerns. This study recommends regulatory reforms, AI governance frameworks, workforce reskilling initiatives, and increased collaboration between academia, industry, and policymakers to ensure sustainable AI adoption in financial services.