This study investigates the transformative role of Artificial Intelligence (AI) in financial accounting and reporting for Rwandan banks. Using a qualitative approach, data was collected through document analysis, expert interviews, and case studies spanning 2005 to 2012. Key findings reveal a significant increase in AI adoption, from 20% in 2005 to 64.3% in 2012 (χ²(2, N=14) = 8.21, p < 0.05), resulting in improved financial reporting accuracy (from 84% in 2010 to 92% in 2012, t(13) = 5.23, p < 0.001) and operational cost reductions of nearly 15% by 2012 (F(2, 27) = 4.67, p < 0.05). Despite these advances, challenges such as high implementation costs (78% of banks) and limited technical expertise (64%) hinder broader adoption. The study concludes that targeted capacity-building, financial incentives, and robust data governance frameworks are essential for maximizing AI's potential. Recommendations include expanding training programs, incentivizing AI investments, and aligning regulatory frameworks with technological innovations.