This article examines how Artificial Intelligence (AI) is transforming management accounting from a traditionally reactive, backward-looking practice into a proactive, strategic partner in organizational decision-making. The objective is threefold: (1) to analyze the convergence of AI technologies - such as machine learning, natural language processing, and predictive analytics - with management accounting functions; (2) to evaluate their impact on cost control, budgeting, performance measurement, strategic support, and risk management; and (3) to identify implementation challenges, ethical considerations, and future research directions. The study employs a mixed-methods approach: a critical synthesis of contemporary literature (2022–2025) and industry reports, integration of theoretical models - including Dynamic Capabilities, Digital Transformation, and Socio-technical Systems Theory - and multiple global case studies. Case examples include KONE, Nordea, Deloitte, GE, and Vodafone, which illustrate the tangible benefits and challenges of AI integration. The methods provide a robust conceptual and empirical basis for understanding AI’s strategic impact on financial processes. Results indicate that AI-driven management accounting significantly enhances forecasting accuracy, operational efficiency, and strategic agility. Machine Learning (ML) reduces manual processing time by up to 80%, predictive analytics supports rolling forecasts and scenario planning, and NLP (Natural Language Processing) provides qualitative insights from unstructured data. These capabilities elevate accountants’ roles from data custodians to strategic advisors. However, the findings also reveal critical challenges: high implementation costs, resistance to organizational change, data governance concerns, and ethical issues such as algorithmic bias and transparency. The article underscores the need for continuous professional upskilling, strong IT governance frameworks, and cross-functional collaboration to ensure responsible and effective AI deployment. The study concludes that AI is not merely a technical enhancement but a transformative enabler of strategic finance. By embedding AI within well-aligned socio-technical systems, organizations can achieve faster, more informed decisions and gain competitive advantage. Future research should address longitudinal data gaps, cross-cultural adoption, and regulatory frameworks to shape the ethical and practical foundations of AI-driven management accounting.
Marja-Liisa Tenhunen (2025) studied this question.