Challenges and Barriers to AI Adoption in Accounting in Bangladesh

Abstract

The use of artificial intelligence (AI) is increasingly gaining momentum in the accounting field, but there are challenges in its adoption by accounting professionals in emerging countries, like Bangladesh. This study empirically explores six barriers to the adoption of AI in accounting practice in Bangladesh: AI Skill Gap, Data Privacy and Security issues, High Implementation cost, System Integration issues, Resistance to change, and Lack of technical knowledge, and checks the relationship between these barriers and the effective use of AI in accounting practice. Structured five point likert scale type questionnaire was used to conduct the survey in which accounting and financial professionals have been targeted as the respondents from the accounting firms, audit firms and corporate finance/accounting department in the city of Dhaka, Bangladesh through quantitative, cross sectional survey. The 156 responses received were analyzed by descriptive statistics, cronbach's alpha reliability analysis and pearson correlation and multiple regression in SPSS & MS Excel. There were acceptable to excellent internal consistencies for each construct (α-values ranged from .899 to .940). The results showed that there were six constructs in the barriers model that positively and significantly affect the use of effective AI; with the implementation costs, resistance to change, and lack of technical knowledge being the strongest unique predictors (R² = .699; F(6, 149) = 57.54; p < .001). Exposure to and familiarity with AI is discussed below and the results suggest a correlation between feeling there are more barriers and feeling engaged with and value the use of AI. The scope and limitations of this study and future study is discussed and implications for accounting firms, teachers and policy makers in Bangladesh is discussed. In this regard, Artificial Intelligence can be seen as a game-changer technology that is shaping the future of the business. In the realm of business accounting, AI is being referred to as a game-changer and is transforming the future of accounting.