Artificial intelligence adoption in accounting information systems: empirical evidence on performance effects in Saudi Arabia

This paper examines how the integration of Artificial Intelligence (AI) within accounting information systems (AIS) influences organizational performance and decision-making capacity in Saudi Arabia. It further investigates the mediating role of decision-making capacity in the relationship between AI-enabled AIS and organizational performance. A quantitative research design was employed using data collected from 340 accounting and finance professionals in Saudi Arabia. The proposed relationships were tested using covariance-based structural equation modeling (CB-SEM) to assess both direct and indirect effects. The results reveal that AI integration within AIS has a significant positive impact on both financial and non-financial performance, with a stronger effect observed on financial performance. Additionally, AI-enhanced AIS improves decision-making capacity. The findings also indicate that decision-making capacity partially mediates the relationship between AI integration and organizational performance, suggesting that AI creates value both directly and indirectly through enhanced analytical and informational support. The study is limited by its reliance on cross-sectional, self-reported data, which restricts causal inference. Future research is encouraged to adopt longitudinal designs and incorporate objective performance measures. The findings highlight the importance for organizations to integrate AI technologies such as machine learning, robotic process automation, and predictive analytics into AIS. Enhancing decision-support capabilities through AI can lead to improved organizational performance and more effective strategic decision-making. This study contributes to the literature by conceptualizing AI as a strategic capability embedded within AIS and providing empirical evidence from the Saudi Arabian context. It extends prior research by offering a more nuanced understanding of how AI integration influences organizational performance through decision-making mechanisms.