Generative Artificial Intelligence Adoption and Accounting Performance: Examining Accounting Efficiency, Financial Reporting Quality and Managerial Decision-Making

The rapid adoption of Generative Artificial Intelligence (GenAI) is transforming accounting practices by influencing how financial information is processed, reported, and used for managerial decision-making. However, limited empirical evidence explains how GenAI adoption and accounting efficiency jointly contribute to accounting performance, particularly through financial reporting quality. This study therefore examines the relationships among Generative Artificial Intelligence Adoption, Accounting Efficiency, Financial Reporting Quality, and Accounting Performance within an integrated accounting framework. The study employed a quantitative, cross-sectional approach using data collected from 250 accounting and finance professionals. The relationships among the constructs were examined using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4.0. The findings indicate that Generative AI Adoption has a positive effect on Accounting Performance and Financial Reporting Quality, while Accounting Efficiency also has positive effects on both outcomes. Financial Reporting Quality demonstrates a strong positive effect on Accounting Performance and further serves as an important mediating mechanism between Generative AI Adoption and Accounting Performance, as well as between Accounting Efficiency and Accounting Performance. The structural model indicates that the proposed relationships provide meaningful explanatory and predictive value for the endogenous constructs. Overall, the findings suggest that the benefits of Generative AI in accounting extend beyond automation and become more meaningful when AI adoption is supported by efficient accounting processes and high-quality financial reporting. The study contributes to the emerging literature on AI and accounting by providing an integrated perspective on how technological adoption, accounting efficiency, and financial reporting quality can collectively strengthen accounting performance and support managerial decision-making.