Adoption of Accounting Information Systems and AI Integration in Small-Scale Enterprises: Evidence from Central Region- Cape Coast, Ghana

Abstract

This study examines the adoption of Accounting Information Systems (AIS) and the role of Artificial Intelligence (AI) in enhancing the performance of small-scale enterprises (SSEs) in Cape Coast Central Region, Ghana. Using a quantitative cross-sectional survey, data were collected from 204 SSEs through structured questionnaires. Descriptive statistics, one-sample t-tests, and multiple regression models were employed for analysis. Results showed that 42.5% of SSEs had adopted computerized AIS, surpassing manual methods (35%). One-sample t-tests revealed that cost, availability of skills, management support, and ICT infrastructure were significant determinants of AIS adoption (p < 0.001). Regression analysis indicated that skills availability was the strongest positive predictor, while cost exerted a negative effect, explaining 52% of the variance in adoption. Regarding performance, AIS adoption significantly improved decision-making, sales growth, profitability, and operational efficiency (p < 0.001). AI perceptions further explained 48% of performance variance, with cost reduction, accuracy, task simplification, and wider adoption all emerging as significant predictors. The findings highlight the dual importance of AIS and AI in boosting SSE competitiveness, while challenges such as high implementation costs and lack of technical skills remain. The study contributes empirical evidence to the digitalization of SSEs in developing economies and offers policy insights for promoting inclusive technology adoption.