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VOL. 8, ISSUE 4 (2026)
Artificial intelligence and its impact on accounting and financial decision-making: Evidence from Indian businesses
Authors
Dr. Subodh Sharma, Hitesh Kumar Sharma
Abstract
Artificial intelligence (AI) is increasingly
used to process documents, detect unusual transactions, forecast cash flows and
support financial risk assessment. These tools may help accounting teams reduce
repetitive work and give managers faster access to useful information. This
paper examines the relationship between AI adoption and accounting and
financial decision-making in Indian businesses through a five-year review of
HDFC Bank, ICICI Bank, State Bank of India (SBI) and Tata Consultancy Services
(TCS). Company annual reports and official financial highlights provide actual
profit-after-tax figures for FY 2020–21 to FY 2024–25. Because companies do not
disclose a consistent, audited AI adoption index or comparable
accounting-efficiency measure for every year, this paper does not invent an AI
score. Instead, it analyses reported profit trends and discusses AI related
disclosures as contextual evidence. Two hypotheses address changes in reported
profit over time and the potential relationship between documented AI use and
decision support. Descriptive trend analysis and a one-sample trend test are
discussed, while the limits of causal interpretation are made explicit. Results
show that reported profit rose over the period for all four selected companies,
although the size and timing of changes differ. This pattern is consistent with
business growth and changing market conditions, but it cannot be attributed to
AI alone. The paper concludes that AI can strengthen financial work when
introduced with reliable data, human oversight and measurable operational
targets.
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Pages:7-10
How to cite this article:
Dr. Subodh Sharma, Hitesh Kumar Sharma "Artificial intelligence and its impact on accounting and financial decision-making: Evidence from Indian businesses". International Journal of Finance and Commerce, Vol 8, Issue 4, 2026, Pages 7-10
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