Factors Influencing the Adoption of Artificial Intelligence in Accounting Among Micro, Small Medium Enterprises (Msmes)

This study investigated the factors that influence the adoption of artificial intelligence (AI) in accounting among Malaysian Micro, Small Medium Enterprises (MSMEs). It focused on three factors based on the Technology, Organization, and Environment (TOE) framework, and the Diffusion of Innovation (DOI) theory. The factors examined include compatibility, complexity, security and privacy, top management support, business strategy support, organizational resources, business market structure, competitive pressure, and government regulations. A quantitative approach was employed to collect data which were then analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) software. The study’s findings indicate that compatibility, top management support, business strategy support, organizational resources, business market structure, competitive pressure, and government regulations significantly impact AI adoption in MSMEs. However, the study did not find significant influences of complexity as well as security and privacy on AI adoption of Malaysian MSMEs. In conclusion, this study’s findings offer valuable insights on how organizations can effectively navigate these factors to achieve successful AI adoption in their accounting practices.