Towards a conceptual model of AI adoption in public sector accounting

Abstract

Malaysia is experiencing a significant technological shift, with Artificial Intelligence (AI) increasingly integrated across various sectors, including public administration, healthcare, education, finance, and transportation. Recognizing its transformative potential, the Malaysian government has prioritized raising public awareness of AI to ensure inclusive and beneficial adoption. However, the broad implementation of AI in the public sector presents challenges, particularly around issues of trust, data privacy, and the dissemination of misinformation. This conceptual paper aims to explore the key factors influencing the adoption of AI in public sector accounting. Specifically, it proposes a framework incorporating organizational culture, communication structure, competitive pressure, regulatory support, management support, perceived usefulness, and perceived ease of use as determinants of AI adoption. Additionally, the role of trust is introduced as a potential mediating variable in the relationship between perceived usefulness, perceived ease of use, and AI adoption. By developing a theoretical model grounded in existing literature and relevant adoption theories, this paper seeks to contribute to academic discourse and guide future empirical research.