AI IN ACCOUNTING POLICY FORMATION: CHALLENGES FOR REGULATORS AND CORPORATE BOARDS IN GHANA

Amid the global shift toward digital transformation in financial governance, the integration of Artificial Intelligence (AI) in accounting policy formation has emerged as a critical area for reform in Ghana. This study addresses the pressing need for adaptive and transparent financial governance by evaluating the challenges regulators and corporate boards face in adopting AI technologies. Using a descriptive research design, the study analyzed secondary data from 50 institutions—including 25 corporate boards and 25 regulatory bodies—collected through institutional reports and analyzed via chi-square tests, ANOVA, correlation, and multiple regression. The findings reveal that AI integration has significantly improved accounting policy outcomes. AI-based data analytics enhanced policy quality, with automated dashboards and visualization tools showing the highest effectiveness (ANOVA significance, p < 0.01). Regulatory enforcement improved, as fraud detection speed increased by 37.5%, compliance accuracy by 21.4%, and reporting efficiency by 33.3%. Machine learning tools accelerated policy revisions by 41.7%, reducing revision time from 12 to 7 months. The overall Pearson correlation coefficient between AI integration and policy performance was r = 0.801, while the regression model explained 72.4% of the variance (R² = 0.724) in policy outcomes. The study concludes that AI tools are transformative assets for both private and public accounting governance in Ghana. It recommends scaling user-friendly AI systems, investing in AI literacy, and developing a cohesive digital policy framework. These insights offer a strategic pathway for AI-driven reform and contribute empirical evidence to the growing discourse on digital transformation in emerging economies.