Readiness Of Indian Accounting Firms for Artificia Intelligence Integration: A Structural Assessment Using a Composite Ai Readiness Index

Abstract

Artificial Intelligence (AI) is swiftly revolutionizing the accounting industry by automating repetitive tasks, facilitating predictive analytics, and enhancing regulatory compliance procedures. Prominent global accounting networks have already incorporated AI-driven auditing, analytics, and advisory platforms into their service offerings. Nevertheless, there has been limited research into the preparedness of accounting firms in emerging markets, especially in India, for AI integration. This study seeks to fill this void by creating an Artificial Intelligence Readiness Index (AIRI) to assess the readiness of Indian accounting firms for AI adoption.

The research is based on the Technology–Organization–Environment (TOE) framework and the Resource-Based View (RBV), which together encompass technological capabilities, organizational resources, and environmental pressures that affect AI readiness. Methodologically, the study develops a composite index utilizing standardized secondary indicators that represent technological infrastructure, organizational competencies, and regulatory–market conditions. These indicators are combined to calculate the AIRI, yielding a quantitative assessment of firm-level readiness.

A regression-based structural analysis is subsequently employed to explore the relationships between readiness dimensions and their influence on competitive capability. The study contributes by offering a replicable framework for assessing AI readiness in professional service firms. By expanding the TOE model and incorporating insights from the RBV, the research enhances the understanding of digital transformation readiness while providing a practical benchmarking tool for firm leaders, regulators, and policymakers.