THE EVOLUTION OF AI IN ACCOUNTING: PAST, PRESENT, AND FUTURE TRENDS (FOCUS: RWANDA)

This study examines the evolution of Artificial Intelligence (AI) in Rwanda's accounting sector, exploring its historical progression, current applications, and future potential. Employing a mixed-methods approach, the research analyzed secondary data from 2018-2023 and conducted qualitative interviews with industry professionals. Key findings reveal a significant increase in AI adoption, from 15% in 2018 to 67% in 2023, with automated bookkeeping (35%) and fraud detection (25%) leading applications. Statistical analysis shows a strong positive correlation between AI adoption and financial reporting accuracy (r = 0.87, p < 0.01) and revenue growth (r = 0.82, p < 0.01). Despite barriers such as high initial costs (40%) and lack of expertise (30%), firms planning AI investments are 2.5 times more likely to anticipate operational improvements. Recommendations include targeted training, financial incentives, awareness campaigns, and enhanced public-private partnerships to address challenges and foster innovation in Rwanda's accounting landscape.