Journal
Metropolitan Journal of Academic Multidisciplinary Research
MJAMR
The Impact of Artificial Intelligence on Financial Accounting Practices in the Banking Industry: A Case of Equity Bank Uganda Ltd
Mumbejja Gloria, Asiimwe Prisca
| Journal | Metropolitan Journal of Academic Multidisciplinary Research (MJAMR) |
| Volume / Issue | Vol. 5, No. 9 |
| Published | 30 September 2026 |
| ISSN | 3006-4384 |
Abstract
This study examined the impact of artificial intelligence (AI) on financial accounting practices at Equity Bank Uganda Ltd, one of Uganda's fastest-growing commercial banks with a mission to transform the lives and livelihoods of people in Africa. As AI technologies including machine learning algorithms, natural language processing systems, intelligent process automation, and predictive analytics platforms were progressively integrated into banking operations globally, their specific impacts on core financial accounting functions including transaction processing, financial reporting, auditing, fraud detection, and regulatory compliance were reshaping the skills, processes, and professional judgements that defined financial accounting practice in the banking sector. Drawing on a cross-sectional survey of 186 respondents comprising financial accountants, management accountants, internal auditors, IT and data analytics staff, finance department managers, and senior management at Equity Bank Uganda's Kampala headquarters and regional branch network, the study employed descriptive statistics, Pearson's correlation analysis, multiple linear regression, and Structural Equation Modelling to examine how AI-driven automation of accounting processes, AI-powered financial analytics and decision support, and AI-enabled regulatory compliance and reporting systems influenced financial accounting accuracy, operational efficiency, and professional capability development outcomes. Descriptive statistics revealed moderate to high AI integration levels across all dimensions (means 3.42–3.84). Pearson correlation confirmed significant positive relationships between all three AI dimensions and financial accounting practice quality (r = 0.614–0.761, p < .001). Multiple regression demonstrated that the three AI dimensions collectively explained 68.4% of the variance in financial accounting practice quality (R² = 0.684, F = 46.28, p < .001), with AI-driven automation emerging as the strongest predictor (β = 0.441, p < .001). SEM path analysis confirmed AI automation as the construct with the largest total effect on accounting practice quality (total β = 0.537), with AI analytics and decision support partially mediating this relationship (indirect β = 0.152). The study concluded that AI integration had significantly and positively transformed financial accounting practices at Equity Bank Uganda and recommended strategic AI investment, accountant reskilling, AI governance framework development, and regulatory dialogue as priority actions for sustainable AI-enabled accounting transformation.
Keywords
Artificial Intelligence
Financial Accounting
Banking
Machine Learning
Automation
Regulatory Compliance
Equity Bank Uganda
SEM
Professional Development
Uganda
Cite This Article
Mumbejja Gloria & Asiimwe Prisca (2026). The Impact of Artificial Intelligence on Financial Accounting Practices in the Banking Industry: A Case of Equity Bank Uganda Ltd. Metropolitan Journal of Academic Multidisciplinary Research, 5(9). https://journals.miu.ac.ug/pages/article.php?article_id=1896
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