THE INTEGRATIVE CHALLENGES OF ARTIFICIAL INTELLIGENCE ADOPTION ON ACCOUNTING PROFESSION: A LITERATURE REVIEW

Abstract

This study examines the integrative challenges of Artificial Intelligence adoption on the accounting profession through a literature review approach. The study is motivated by the rapid integration of AI in accounting practice, which has fundamentally transformed the profession by automating routine tasks and enabling data-driven decision-making, yet the profession faces significant challenges including technology risks, ethical concerns, skills gaps, and organizational adoption constraints that remain inadequately understood. The method used was a qualitative-descriptive literature review by analyzing twenty-five international journal articles indexed in Scopus that were relevant to the research topic. The analysis process was carried out through data extraction, thematic grouping, and narrative synthesis to identify patterns of relationships between variables. The results show that AI integration presents four major challenges: technology risks and automation bias, ethical and regulatory challenges, skills gaps, and organizational adoption constraints. The Deloitte Australia 2025 AI hallucination case demonstrates that generative AI can produce persuasive but inaccurate output without adequate human verification, highlighting automation bias and weak human oversight. Ethical challenges including bias, transparency, privacy, and accountability remain unresolved due to lack of clear standards. Significant skills gaps demand curriculum updates and lifelong learning. Organizational constraints including infrastructure limitations, cultural resistance, and job loss concerns impede AI adoption. These four challenges interact and form integrative relationships influencing accounting profession transformation. The conclusion confirms that an integrative approach provides more comprehensive understanding of challenges faced by the accounting profession in the AI era compared to partial approaches.