Riding the Waves of Artificial Intelligence in Advancing Accounting and Its Implications for Sustainable Development Goals

Round 1

Reviewer 1 Report

The article is very interesting, and I have read it with pleasure, but there are still some questions which I would ask the authors to address.   .

I miss a definition of the most important constructs, like ‘Artificial Intelligence’, ‘AI automation’ etceteras.

AI also has its downsides. One of the aspects that the authors mention (line 46 and further) is the shortage of talent (and actually just: personnel) in the accountancy field. Artificial intelligence can replace people, but that could also lead to a complete reduction of the accountancy workforce, even leading to unemployment. Can the authors address this issue? (You say something about this in line 230 and further ‘And allows the accountants to spend more time on strategic planning, financial analaysis, client management, etc.)

Specific comments

Line 180 and further, the authors state ‘Despite these advantages, concerns related to the security of data, human control, and moral issues need to be resolved to ensure that AI is used responsibly and effectively in accounting’. Could you elaborate this more?

I think section 4.2 should be placed before section 4.1., as in section 4.2. the SDG’s are discussed, and in section 4.1. it says that ‘The compatibility between AI-backed accounting practises and SDGs is explored in further detail in the study and critically examines how organisations can assess, monitor, and report their achievements towards specific SDGs’. ‘Exploring in further detail’ should be done earlier in the article, therefore my suggestion.

Author Response

Reviewer 1

Thanks a lot for reviewing our paper and providing valuable suggestions and comments. We have incorporated the changes and believe that they have increased the quality of the paper.

Thanks once again.

The article is very interesting, and I have read it with pleasure, but there are still some questions which I would ask the authors to address. 

Response: Thanks a lot for appreciating ours work. Your positive comment has really motivated us. Thanks once again. Further we have incorporated your suggested changes and believe that they have really polished and increased the quality of the work.

Comment: I miss a definition of the most important constructs, like ‘Artificial Intelligence’, ‘AI automation’ etc.

Response: Thanks a lot for your suggestion. Definitions have been provided in the text.

… One way to address these issues is to adopt new technology and innovations and luckily Artificial Intelligence (AI: “is the ability of machines to perform tasks that are typically associated with human intelligence”[5]) has the potential to address these challenges to a greater extent [6], [7].

….AI automation (“the technique of making an apparatus, a process, or a system operate automatically”) [26] has various benefits, including increased accuracy, faster operations, real-time reporting, identification of fraud, and better financial analysis in accounting [27].

Comment:

AI also has its downsides. One of the aspects that the authors mention (line 46 and further) is the shortage of talent (and actually just: personnel) in the accountancy field. Artificial intelligence can replace people, but that could also lead to a complete reduction of the accountancy workforce, even leading to unemployment. Can the authors address this issue? (You say something about this in line 230 and further ‘And allows the accountants to spend more time on strategic planning, financial analaysis, client management, etc.)

Response: Thanks a lot for your comment.

In the paper, we accept the concern about job displacement in the accountancy field as a result of AI integration. It's crucial to recognize that AI is a tool that complements and enhances human capabilities rather than entirely replacing them. Our intention is not to advocate for replacing accountants but to emphasize the transformative potential of AI in reshaping the roles and responsibilities within the profession.

As mentioned in line 230 and further, one of the key advantages of incorporating AI into accountancy is that it can handle routine and repetitive tasks, such as data entry and transaction reconciliation. This automation allows accountants to free up their time from mundane tasks and redirect their efforts toward more value-added activities. These activities include strategic planning, financial analysis, client management, and other tasks that require human judgment, expertise, and communication skills.

While there are legitimate concerns about the impact of AI on the accountancy workforce, our perspective is that AI should be seen as a complementary tool that can empower accountants to focus on more strategic and value-added activities, ultimately benefitting both professionals and their clients. By embracing AI and adapting to this technological shift, the accountancy field can evolve and thrive in the digital age.

Comment:

Specific comments

Line 180 and further, the authors state ‘Despite these advantages, concerns related to the security of data, human control, and moral issues need to be resolved to ensure that AI is used responsibly and effectively in accounting’. Could you elaborate this more?

Response: Thanks for your comment. The elaboration has been added. Further the discussion also deals with this in more details.

 As dependency on AI-based systems grows, ensuring data privacy and security becomes increasingly vital. Comprehensive security measures are essential to safeguard critical financial data from unauthorised access, among other things. Another critical problem is the ethical difficulties that occur as a result of the use of AI in accounting. Accountants and businesses must take proactive steps to guarantee that AI-powered operations are transparent, fair, and ethical. Furthermore, as AI becomes more integrated into the accounting system, accountants must learn how to connect with AI systems, optimise their use, and assess their outputs.

Comment:

I think section 4.2 should be placed before section 4.1., as in section 4.2. the SDG’s are discussed, and in section 4.1. it says that ‘The compatibility between AI-backed accounting practises and SDGs is explored in further detail in the study and critically examines how organisations can assess, monitor, and report their achievements towards specific SDGs’. ‘Exploring in further detail’ should be done earlier in the article, therefore my suggestion.

Response:

Thanks a lot for highlighting this important issue. We have incorporated the changes.

Reviewer 2 Report

Title:

·         It is better if you reduce the title length

Abstract:

Introduction

·         What are the research contributions? Objectives. It should be clearly defined/ discussed in the introduction section.

Literature Review

·         What is/are the previous research gap(s) you intend to cover?

Discussions

·         Authors may use case study or examples to strengthen their study. For example what fraudulent actions can AI mitigate?

Conclusion

·         What is the target group of this study?

·         The author needs to introduce directions for future research. There are no directions for further studies presented.

Author Response

Reviewer 2

Thanks a lot for reviewing our paper and providing valuable suggestions and comments. We have incorporated the changes and believe that they have increased the quality of the paper.

Comment: It is better if you reduce the title length

Response: Thank you for your feedback regarding the title length. We appreciate your input, and we'd like to clarify that the title length was carefully considered and has been reviewed by multiple experts and reviewers in the field. It aligns with established best practices for conveying the scope and purpose of the content.

Its reduction will not fully convey the scope and purpose of the study. I hope you will agree with us.

Introduction

Comment: What are the research contributions? Objectives. It should be clearly defined/ discussed in the introduction section.

Response: Thanks a lot for highlighting this shortcoming. We have added the following paragraph regarding the contribution of the study at the end of introduction after objectives.

The study is intended to provide insights regarding the adoption of AI in business organizations or accounting professions. Further, it explores the role of AI in accounting with a focus of its potential to address the concerns, traditional accounting is facing. As the future is more dependent on technological advancement and there is a need to study what AI can bring to accounting.

Literature Review

Comment: What is/are the previous research gap(s) you intend to cover?

Response: We really appreciate your comment regarding the research gap. We have added it to the introduction section. Thanks once again.

The study bridges the gaps in our knowledge regarding the integration of artificial intelligence, the accounting processes, and sustainability. And provide a guideline for the development of AI tools for beneficial and effective integration of the AI, accounting and sustainability. It also assists in finding the necessary factors for AI to make its adoption successful in the accounting sector. The study leads to better understanding regarding the AI role in accounting including its significance for establishing sustainable business processes by filling these gaps.

Discussions

• Comment: Authors may use case study or examples to strengthen their study. For example what fraudulent actions can AI mitigate?

Response: Thanks a lot for your comment. Please see line 313 section “What problems and challenges, AI can resolve in accounting? for details.

Comment: Conclusion

• What is the target group of this study?

Response: We appreciate your response and have added the target group into the abstract.

……..The paper has implications for policy makers, technology developers, financial institutions and business firms.

• Comment: The author needs to introduce directions for future research. There are no directions for further studies presented.

Response:  Thanks for your noticing. Pease see the last section of the paper.

6.1 Limitations and Direction for Future Research

The study has some limitations which need to be explored in future studies.

1. This study is not based on a proper quantitative or qualitative (systematic review) methodology which is also one of its main limitations. Yet, it opens directions for such researches.
2. Technology adoption is often accompanied by ethical issues. Research is also needed on the ethical adoption of AI in accounting.
3. The role of AI in small and large business accounting needs exploration.
4. AI is an advanced technology and it is important to explore it in the context of the digital divide.
5. Research should be conducted on the successful adoption of AI in accounting firms.

Reviewer 3 Report

Please check the attachment.

Comments for author File: Comments.pdf

Quality of English Language is acceptable

Author Response

Reviewer 3

Thanks a lot for reviewing our paper and providing valuable suggestions and comments. We have incorporated the changes and believe that they have increased the quality of the paper.

Comment 1. The title of the article is clear, concise, and suitable for the study.

Response:

Thanks a lot for appreciating the title. Your positive comment has really motivated us. Thanks once again

Comment 2 Abstract:

2. The abstract is well-written which introduces a brief background about the study and conveys the objective clearly. However, the authors must add what does the numbers in SDG 8, SDG 9, and SDG 12 denotes?

Response:

Thanks a lot for highlighting this important issue. We have incorporated the changes.

Please see the abstract

Comment: Body of the manuscript

3. The authors have introduced the current challenges and need for AI in accounting in Introduction. However, being a review paper the authors must also briefly touch upon on the role of Industry 4.0 and Industry 5.0 technologies to show the evolution of AI in various fields and the need for AI in accounting. In addition the authors must also focus on sustainable development and adaptation of the technology. Below are few suggestions for the same,
4. Industry 4.0 and its Implications for the Financial Sector,

https://doi.org/10.1016/j.procs.2020.10.068

4. Artificial intelligence based tool condition monitoring for digital twins and industry 4.0

applications, https://doi.org/10.1007/s12008-022-01050-5.

4. Sustainability accounting and reporting in the industry 4.0,

https://doi.org/10.1016/j.jclepro.2020.120783

4. Pandemic, War, Natural Calamities, and Sustainability: Industry 4.0 Technologies to

Overcome Traditional and Contemporary Supply Chain Challenges,

https://doi.org/10.3390/logistics6040081

4. Industry 4.0 Adaption in Indian Banking Sector—A Review and Agenda for Future Research,

https://doi.org/10.1177/0972262921996829

Response: Thanks a lot for your suggestions. We have incorporated these papers into the introduction.

At current, digital era of 4.0 and 5.0, technology and accounting sectors are getting closer and has attracted researchers to investigates their possible opportunities and threats for financial and accounting sectors [13], especially for sustainability [14], and banking [15] as industry 4.0 and 5.0 have brought a significant impact in supply chain management [16] in the form of digital twins [17]. All

Comment: 4. Page 2, line 63, “…Like other sectors [7-9] etc….” Avoid generic statements and explicitly mention which sectors.

Response: Thanks a lot for noticing this issue. The changes have been incorporated with thanks.

Like education, supply chain management [7-9] etc., accounting has begun to embrace AI because of its revolutionary influence on numerous aspects of accounting management.

Comment 5. Page 3, line 136, Please remove the statement “…To cut our discussion short…” although it is a review paper, such generic statement must be avoided in research publications.

Response:

Thanks a lot for highlighting this important issue. It has been removed

Comment 6. It is not clear why the authors have added additional section 4.1 to 4.3 after conclusions, generally it must be preceding conclusions. It is suggested to check with the editorial office on the same.

Response:

Thanks a lot for highlighting this important issue. We have incorporated the changes.

Comment 7. The conclusion is very shallow and generic. It must focus on the review performed and provide a crisp outcome of the study.

Response: Thanks a lot for your suggestion. We have refined the conclusion according to your comment.

Conclusion:

The role of AI in accounting is revolutionary, and simplifies accounting processes, improves accuracy, and equip the accounting and accountants with automation, better data analysis, and predictive abilities. AI also poses some significant ethical issues, regarding data like bias and privacy, that must be addressed responsibly. Accountants and businesses must adopt AI and obtain the necessary skills to use it effectively. The integration of AI in businesses and accounting still needs further exploration to ensure its responsible use.

Comment 8. The references are suitable and adequate. However, it is recommended to add few papers related to Industry 4.0 and 5.0 technologies as suggested in point 3.

Response: Thanks a lot for your assistance in providing solid and relevant papers.  They have been added into the paper.

Comment 9. Overall feedback

As it is a review paper, there is limited scope for a peer-review. In general, the paper is good.

Response:

Thanks a lot for appreciating ours work. Your positive comment has really motivated us. Thanks once again. Further we have incorporated your suggested changes and believe that they have really polished and increased the quality of the work.

Round 2

Reviewer 1 Report

The authors have addressed my feedback in a positive way, increasing the quality of the article.