Exploring Artificial Intelligence (AI) Integration in Malaysian Public Accounting: Qualitative Insights and Readiness Assessment

ABSTRACT

Purpose: This study aims to understand the complexities and nuances surrounding artificial intelligence (AI) integration within the context of Malaysian public sector accounting. By exploring the perspectives and experiences of key stakeholders, this research seeks to contribute to the development of strategies for successful AI implementation in the sector.

Design/ Methodology/ Approach: A qualitative research approach, involving semi-structured interviews with 18 public sector accountants, was employed to comprehensively explore their experiences, perceptions and challenges of AI adoption.

Findings: Findings indicate a foundational understanding of AI’s potential amongst public sector accountants, with its application envisioned for automating repetitive tasks, reduce manual process, and perform data analytics. While challenges such as system integration, network disruptions, and resistance from senior accountants hinder implementation, participants’ express optimism about AI’s role in enhancing efficiency and decision-making. This positive outlook is coupled with an expectation of reallocating staff towards higher-value functions like internal controls and auditing.

Research Limitations/ Implications: The study’s limitations arise primarily from its sample size of 18 participants and the focused selection of public departments. This restricted scope may constrain the generalisability of
the findings to the broader spectrum of Malaysian public sector accounting services.

Practical Implications: By identifying key challenges and opportunities, policymakers can establish guidelines and frameworks for a phased approach, prioritizing departments with the necessary infrastructure and human capital.
This strategic approach will facilitate the seamless integration of AI, maximizing its benefits while mitigating potential risks.

Originality/ Values: As an early exploration in this field, this study offers valuable insights that may assist policymakers in developing a strategic roadmap for AI implementation within the Malaysian public sector accounting domain.

Keywords: Public sector accounting, AI adoption, accounting information systems (AIS), Malaysia.