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Artificial intelligence

Artificial Intelligence and Financial Reporting: A Study on Sustainable Craft Industry

Strategic Insights

— 1 min read

A new research study published in the Journal of Engineering has shed light on the impact of artificial intelligence on the quality of financial reporting in the handicraft industry. The study, conducted by researchers from Chandigarh University, aimed to evaluate the effect of entrepreneurial orientation, social media, digital technology, and artificial intelligence accounting tools on financial reporting among female artisans. The findings reveal that digital technology partially mediates the relationship between artificial intelligence accounting tools and financial reporting, and that environmental, social, and governance audit (ESGA) moderates the link between financial reporting and digital technology.

Key Takeaways:

  • The study used a quantitative approach, employing the Smart PLS structural equation model, and analyzed data from 410 female artisan entrepreneurs in Uttar Pradesh and Bihar.
  • The research found that digital technology partially mediates the relationship between artificial intelligence accounting tools and financial reporting.
  • ESGA moderates the link between financial reporting and digital technology, indicating that social and environmental factors influence the use of digital technology in financial reporting.
  • The study suggests that artificial intelligence accounting tools can improve financial reporting among female artisans in the handicraft industry.
  • The research concluded that this is one of the first studies to focus on the sustainable craft industry, emphasizing the importance of achieving gender equality and empowering women (SDG 5) and ending hunger (SDG 1).
  • The study's findings can inform policymakers and practitioners about the impact of artificial intelligence on financial reporting in emerging economies.

Statistics:

  • 410 female artisan entrepreneurs participated in the study, selected through purposive sampling technique.
  • The sample size was determined using judgmental sampling through random sampling.
  • The study analyzed eight hypotheses using a cross-sectional survey.
  • 100% of the respondents were female artisans, indicating that the study focused specifically on women in the handicraft industry.

Sources:

  • Discover Sustainability. (2025). Impact of entrepreneurial orientation, digital technology, social media, Artificial Intelligence and AI accounting tools on the quality of financial reporting among women artisans as entrepreneurs in the handicraft industry. 6(1), 1-34. doi:10.1007/s43621-025-01611-0
  • NewsRx. (2025, October 20). Study Data from Chandigarh University Update Knowledge of Artificial Intelligence (Impact of entrepreneurial orientation, digital technology, social media, Artificial Intelligence and AI accounting tools on the quality of financial reporting among women artisans as entrepreneurs in the handicraft industry). Journal of Engineering, p 4202.

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