Taiseer Mohammed Jumaah, Durgham Ahmed Abdul Ridha, Islam Ahmed Abdulridha, Hamzah N. Al-Jumaili
Purpose This study aims to investigate the potential for integrating artificial intelligence (AI) technologies with management accounting techniques and their impact on improving financial reporting, accountability, transparency, and the quality and efficiency of information. It also explores how this integration affects stakeholder trust in banks. Design/Methodology/Approach A structured questionnaire was used to survey 100 employees working in banks such Accountants, bankers, and specialized academics regarding AI and managerial accounting practices, and reporting quality. Quantitative models using structural equation modeling (SEM) were employed to analyze the direct and indirect relationships between the variables. Results The results indicate that integrating AI technologies with management accounting does not necessarily lead to a direct increase in trust in banks. Rather, this is achieved through high-quality financial reporting, which acts as an intermediary between technological advancement and trust building. While banks strive to generate strong internal key performance indicators (KPIs) and functional accuracy, these should be disseminated clearly to gain the trust of customers and investors. Practical Implications The researchers’ findings, which focus on integrating artificial intelligence with management accounting, do not directly increase trust in banks. Rather, this effect is mediated by high-quality financial reporting. Therefore, it is essential for the studied government banks to focus on producing accurate and clear performance indicators and publishing them transparently to enhance their credibility and gain the trust of customers and investors. Originality/Value This study makes a pivotal contribution to academic literature and adds to the limited body of research on the integration of artificial intelligence, management accounting, financial reporting, and trust in banks.