An Assessment of the application of Artificial Intelligence to Bank REconciliation Systems at ADRA Zambia

Abstract

The paper reports on the application and effects of AI in performing reconciliations on the bank reconciliation statements at ADRA Zambia, a non-profit organization. Traditional techniques employed in reconciling non-profit financial transactions have become, increasingly time-consuming and prone to errors as technology advances. The study sets out three major objectives: to assess the effect of AI on bank reconciliation processes for non-profit organizations, investigate the challenges faced in AI adoption, and examine strategies for smooth AI integration. The primary purpose is to determine how AI implementation can enhance the quality, efficiency, and credibility of account reconciliation in the banking sector for non-profit organizations. To capture the detailed effects of AI integration, the study adopts a mixed-method approach. Descriptive statistics are used to summarize data trends, regression analysis explores relationships between variables, and thematic analysis handles qualitative data, utilizing tools such as SPSS and Microsoft Excel. The conceptual framework incorporates theoretical models like the Diffusion of Innovation Theory, Technology Adoption Model, and Task-Technology Fit Theory to analyze factors affecting AI adoption and intervention. The paper also addresses challenges related to AI integration, such as reluctance to change organizational culture, lack of experience, and associated costs. Empirical analysis of ADRA Zambia reveals that the specificity and quality of bank reconciliation have improved with the use of AI tools. However, some challenges remain, including initial costs, staff training requirements, and system implementation. The findings suggest that effective AI integration into an organization’s financial activities requires involving key stakeholders, developing strategic approaches, and providing ongoing training to personnel. This study not only offers practical insights for organizations planning similar technology transformations but also contributes to the broader literature on technology use in nonprofit organizations. Future research should revisit the impact of AI on non-profit financial management and consider expanding the study to different non-profit contexts to validate the findings. Keywords: Artificial Intelligence, Bank Reconciliation, Non-Profit Organizations