Artificial Intelligence Adoption and Financial Reporting Transparency: Evidence from Listed Firms in Nigeria

Artificial intelligence is gradually transforming accounting, auditing, corporate reporting, and digital governance by improving data processing, internal control monitoring, fraud detection, and disclosure procedures. However, it's still unclear whether implementing artificial intelligence truly improves financial reporting transparency or if it's merely a symbolic disclosure strategy, despite the fact that listed companies in Nigeria are increasingly utilizing digitalization, automation, and analytics. This research looks at how financial reporting transparency among listed companies in Nigeria are affected by the use of artificial intelligence. Using secondary data from annual reports, corporate governance reports, sustainability reports, and Nigerian Exchange Group disclosures of listed businesses with complete data from 2019 to 2024, the study employs an ex post facto and correlational research design. AI adoption and financial reporting transparency were examined using panel regression, and the severity of AI disclosure was measured using content analysis. The results show that financial reporting transparency is positively and significantly impacted by the application of artificial intelligence. The outcome also demonstrates that while corporate governance quality boosts the link between AI adoption and transparent financial reporting, AI disclosure intensity promotes transparency. By demonstrating how AI adoption can serve as a governance mechanism that improves transparency, the study adds to the body of knowledge on AI accounting. However, its effectiveness in an emerging market comes from actual implementation rather than symbolic AI signaling.