Uddin, Nasir (2025) Artificial Intelligence in Financial Governance for Strengthening Internal Control and Regulatory Compliance. American Journal of Management Practice, 2 (8). ISSN 2997-9366

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Abstract

Background: Artificial Intelligence has recently been adopted in the field of financial governance in order to enhance internal control, risk monitoring, regulatory compliance, and governance. This study seeks to determine the role played by financial governance through artificial intelligence on enhancing internal control and regulatory compliance in U.S. based organizations. Method: A quantitative cross sectional research design was adopted in which an online questionnaire was administered to 155 participants in the United States. The data was gathered by means of a structured Likert scale measure that included items on AI-Based Internal Control, Automated Risk Monitoring, Regulatory Compliance Intelligence, AI Governance Capability, Explainable AI Capability, and Financial Governance Effectiveness. Results: AI-Based Internal Control was found to be highly correlated with Financial Governance Effectiveness with r value of 0.746 and β value of 0.301, p<0.001. Automated Risk Monitoring also correlated highly with the dependent variable with r value of 0.728 and β value of 0.257, p=0.001. Regulatory Compliance Intelligence also proved to be an important predictor of governance effectiveness with β value of 0.214, p=0.004. Explainable AI Capability also proved to be an important predictor but with comparatively lower impact with β value of 0.171, p=0.021. The model of regression explained 72.1% of variance of Financial Governance Effectiveness. Conclusion: AI-based financial governance has great potential in improving internal control, risk monitoring, and regulatory compliance.

Item Type:	Article
Uncontrolled Keywords:	Artificial Intelligence, Financial Governance, Internal Control, Regulatory Compliance, Risk Management
Subjects:	H Social Sciences
Depositing User:	admin eprints
Date Deposited:	01 Sep 2026 16:45
Last Modified:	01 Sep 2026 16:45
URI:	http://eprints.umsida.ac.id/id/eprint/17031

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