International Conference on Technological Intelligence and Business Strategies

Authors - Jolou Vincent M. Jala, Everly A. Nacalaban, Nenon Roy A. Sandinao, Erlinda D. Rivera, Hilfiger L. Cubarrubia
Abstract - This article explored the adoption of Artificial Intelligence in Financial Management Systems of Higher Education Institutions (HEIs) by utilizing a systematic review of related literature. The study focuses on reviewing pre-sent literature on Artificial Intelligence adoption in financial management systems, recognizing the benefits of AI integration, scrutinizing the challenges and barriers to implementation, and offer recommendations for effective and successful AI integration in HEIs. The findings disclosed that artificial intelligence has the capability to meaningfully enhance financial management systems in Higher Education Institutions through automated financial reporting systems, budgeting forecasting and predictive analytics, fraud detection and risk management, and expense tracking and optimization. Adoption of Artificial Intelligence improves efficiency, enhances accuracy, provides better decision-making and cost optimization. More-over, it enhances operational efficiency by systematizing monotonous financial tasks, enhances accuracy by plummeting human faults, supports better decision-making through actual financial data and predictive analytics, and helps to long-term cost optimization and financial sustainability. These improvements permit institutions to alter from manual and volatile financial management routines toward more data-driven, calculated and strategic, financial planning and re-source provision. Conversely, the study also found several challenges that deter AI adoption in Higher Education Institutions, specifically in developing countries such as the Philippines. These challenges include high initial investment and maintenance costs, limited technical skills among staff, data privacy and cybersecurity risks and resistance to organizational change. Numerous HEIs are still in the developing stage of digital transformation and depend chiefly on enterprise systems and basic accounting rather than advanced Artificial Intelligence technologies. The article concludes that successful AI in- corporation requires institutional readiness, strategic planning, capability building, infrastructure progress, and robust data governance policies to completely maximize the advantages of Artificial Intelligence in financial management systems.