PREDICTIVE ACCOUNTING AND REAL-TIME FINANCIAL REPORTING: A CASE STUDY OF AI IMPLEMENTATION IN GHANA SMES

This study addresses the critical need for advanced financial management tools among Ghanaian SMEs by exploring the transformative role of Artificial Intelligence (AI) in predictive accounting and real-time financial reporting. With less than 10% of SMEs adopting AI technologies by 2023-despite constituting 92% of businesses and contributing over 70% of GDP-the study justifies its relevance in the context of Ghana’s economic resilience. The primary objective was to assess how AI implementation impacts financial forecasting accuracy, decision-making speed, compliance, and investor readiness. Employing a descriptive and explanatory design with secondary data from 225 AI-adopting SMEs between 2019 and 2023, the study utilized t-tests, chi-square tests, Pearson correlation, and multiple regression analysis. Results showed a 32% increase in forecasting accuracy, 40% reduction in financial processing time, a 23-point rise in the Investment Readiness Index, and a compliance improvement from 60% to 85%. A strong correlation (r = 0.81, p < 0.001) between digital literacy and AI adoption was observed, while the regression model explained 59% (R² = 0.59) of the variance in financial performance. The study concludes that AI tools significantly enhance financial transparency and agility. Implications highlight the need for targeted policies and SME training to bridge digital skill gaps, while recommendations emphasize AI tool subsidies, national digital literacy programs, and scalable AI integration models. The study contributes to emerging market literature by demonstrating the viability and benefits of predictive accounting in SME ecosystems.