International Science Community Association Research Journal of Management Sciences 15 3 2026 09 6 Artificial Intelligence in Accounting: Transformations, Challenges, and Future Directions 41 43 EN Kore Lakappa 1 Department of Commerce, Govt. First Grade College, Hunnur, Karnataka, India Sannaki Amita S. 2 Department of Commerce, Govt. First Grade College, Savalagi, Karnataka, India Dmello Abigail 1 Department of Commerce, VIVA College of Arts, Commerce and Science, Virar (W), Palghar, Maharashtra, India. Katle Varada 1 VIVA College of Arts, Commerce and Science, Maharashtra, India . Usha 1 Department of Studies in Commerce, Davangere University, Davangere, Karnataka, India G.C. Ashwini 2 Department of Studies in Commerce, Davangere University, Davangere, Karnataka, India Chubachi Mahantesh K. 3 Department of Studies in Commerce, Davangere University, Davangere, Karnataka, India Sirohi Gajendra 1 Acropolis Institute of Management studies and Research, Indore, MP, India Kadur Ajjappa 1 Department of Commerce, B.V.V.S, Shri S. R. Kanthi Arts, Commerce and Science College Mudhol, Bagalkote, Karnataka-587313, India Bedare Nikita 1 Department of PG Studies and Research in Commerce, Bagalkot University, Jamkhandi, Karnataka, India Daga Chetan B. 2 Department of Studies in Commerce, GFGC, Rabakavi Banahatti, Karnataka, India Abhijit Patil CMA Juita 1 VIVA College of Arts, Science and Commerce, Virar West, Mumbai, India > Review Paper 2026 5 4 2026 09 6 Artificial Intelligence (AI) is transforming the accounting profession by automating routine accounting processes, enhancing fraud detection mechanisms, improving audit quality, and supporting predictive financial analytics. The increasing adoption of technologies such as Machine Learning (ML), Natural Language Processing (NLP), and Robotic Process Automation (RPA) has significantly altered traditional accounting practices. The present study examines the role of AI in accounting, focusing on its applications, benefits, challenges, and future prospects. The study is based on secondary data collected from peer-reviewed journals, industry reports, and institutional publications published between 2020 and 2024. The findings indicate that AI improves efficiency, accuracy, and decision-making capabilities while creating challenges related to implementation costs, data security, ethical concerns, and workforce transformation. The study concludes that future accounting professionals must develop technological competencies and analytical skills to remain relevant in the evolving digital environment. Copyright@ International Science Community Association