AI-Based Accounting Systems, Financial Reporting Quality, and Decision-Making Efficiency in Thai SMEs

Abstract

In the digital economy, artificial intelligence (AI) has emerged as a transformative force in the accounting profession, reshaping how organizations collect, process, and analyze financial data. This study investigates the influence of AI-based accounting systems (AIA) and financial reporting quality (FRQ) on decision-making efficiency (DME), with cost information quality (CIQ) serving as a mediating variable, among small and medium-sized enterprises (SMEs) in Thailand. Anchored in the Technology–Organization–Environment (TOE) Framework, Innovation Diffusion Theory (IDT), Decision Usefulness Theory (DUT), and Resource-Based View (RBV), the study employs a mixed-method research design combining qualitative and quantitative approaches. Qualitative data were obtained from in-depth interviews with 15 SME accounting managers, revealing that AI integration enhances data accuracy, automates repetitive accounting processes, and accelerates reporting timelines. Quantitative data were collected through 400 structured questionnaires; of which 372 were valid responses analyzed using Structural Equation Modeling (SEM) with AMOS version 24.0. The results demonstrate that both FRQ and AIA have significant positive effects on CIQ and DME. Moreover, CIQ exhibits a strong mediating effect, reinforcing that reliable cost information serves as a critical mechanism linking technology adoption and information quality to managerial decision performance. The findings suggest that SMEs with higher levels of AI adoption and superior reporting quality can achieve improved cost accuracy, faster decision cycles, and stronger managerial confidence. This underscores that technological advancement alone is insufficient unless supported by high-quality financial data and skilled managerial interpretation. The study contributes theoretically by integrating technological and informational perspectives into a unified framework for decision efficiency and provides practical insights for SME managers, policymakers, and technology developers seeking to enhance accounting digitalization in Thailand. Overall, this research confirms that the synergy between AI-based accounting systems and financial reporting quality significantly enhances decision-making efficiency through the improvement of cost information quality, thereby strengthening the competitive capability and sustainability of Thai SMEs in the digital era.