Revolutionising accounting: the synergy of blockchain and artificial intelligence in preventing fraud and corruption

Abstract

Traditional accounting systems are vulnerable to various forms of misconduct, including fraud and financial misrepresentation. Nevertheless, the advent of advanced technologies, specifically Blockchain and Artificial Intelligence (AI), offers promising solutions to combat accounting corruption. This paper comprehensively explores these technologies, delineating their core principles and applications in accounting. Additionally, it highlights real-world cases where Blockchain and AI have effectively prevented corruption. The synergy of these technologies is a focal point, explaining how their combined utilisation strengthens fraud detection and prevention mechanisms. Despite their potential, implementing AI and Blockchain in accounting for fraud prevention presents multifaceted challenges. These include integration complexities, data quality requirements, technological sophistication, legal and regulatory considerations, and cost implications. Understanding and addressing these challenges are imperative for successfully deploying AI and Blockchain in accounting, ultimately fortifying financial integrity and deterring corrupt practices.