Changes in Management Accounting through the Utilization of Digital Technology in Japanese Companies

Abstract

This paper examines the potential impact of advancements in digital technology, including generative AI, on management accounting through qualitative research. Interviews with practitioners specializing in digital technology suggest that the future will see greater utilization of integrated, interconnected databases and the development of processes that assume the use of AI. In the context of management accounting, the integration of accounting and managerial information into comprehensive data analyses may shift the focus from traditional variance analysis to directly identifying managerial information that impacts financial performance. Furthermore, a case study highlights the trial implementation of automated reporting using generative AI and an integrated database. Such changes could potentially transform management accounting processes themselves, with performance analysis becoming increasingly automated by AI. Consequently, in cultivating management accounting professionals, emphasis is expected to shift toward skills in database construction, the design of performance analysis and reporting systems, as well as the interpretation of results and the formulation of creative business proposals.