The Role of AI in Enhancing Financial Forecasting Accuracy: Transforming Modren Accounting Practices

The impact of applying artificial intelligence (AI) to financial forecasting on forecast accuracy is examined in this study. It focuses on how the usage of AI and improved forecasting accuracy are related, with a particular emphasis on the impact of complex financial data and the role that improved accounting operations efficacy plays. With a sample size of 288, the proposed study focused on the population of banking sector employees in Dubai, United Arab Emirates. The study tested the suggested model using Smart PLS software and the causal research methodology. To ensure the robustness of the model, the empirical inquiry of the study assesses validity, reliability, and hypothesis checks. Furthermore, the study evaluates the reliability of measuring instruments and the internal consistency of constructs using Smart PLS software. Validity is established by means of convergent and discriminant validity tests, which ensure the accuracy of measurement scales and constructs. The suggested causal relationships are examined using structural equation modelling, assessing the direct impact of AI implementation on the precision of financial projections as well as the mediating function of accounting efficiency. The moderating influence of financial data is thoroughly examined in order to comprehend the contextual aspects forming the relationship. By presenting particular instances of how artificial intelligence (AI) could increase the precision of financial forecasting in the banking industry. The study has shown how improved accounting procedures and the complexity of financial data might moderate the effects of AI adoption.