Digital transformation of public sector accounting through artificial intelligence to improve financial transparency and accountability

Lentera Negeri October 07, 2026 Volume 7, Number 1 5 authors

Abstract

Artificial Intelligence (AI) has emerged as a transformative technology that reshapes public sector accounting by improving financial management efficiency, transparency, and accountability. This study aims to examine the role of AI in the digital transformation of public sector accounting and its contribution to enhancing public financial governance. Using a narrative literature review approach, the study analyzes relevant books, peer-reviewed journal articles, government reports, and other scholarly publications concerning AI, digital transformation, and public sector accounting. The findings indicate that AI significantly enhances accounting efficiency through process automation, predictive financial analysis, intelligent auditing, and real-time reporting while strengthening financial transparency and institutional accountability. The Technology Acceptance Model (TAM) explains that perceived usefulness and perceived ease of use are critical determinants of successful AI adoption within public organizations. However, organizational readiness, digital infrastructure, data governance, and regulatory support remain essential prerequisites for effective implementation. The study concludes that AI-driven digital transformation provides substantial opportunities for improving public financial governance and offers strategic insights for policymakers seeking sustainable and accountable financial management systems.

Authors

  1. Arthur Reinaldo Tanihatu

    Politeknik Negeri Ambon

  2. Nana Adriana

    Univeristas Pertiba

  3. Moh. Sholeh

    Universitas Trunodjoyo Madura

  4. Sukriyah Sukriyah

    Universitas Insan Pembangunan Indonesia

  5. Budiandru Budiandru

    FEB Universitas Muhammadiyah Prof Dr Hamka

Keywords

Artificial intelligencePublic sector accountingFinancial transparency and accountability

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