Meybod University Strategic Management Accounting 3092-6890 2 2 2025 06 22 The Effect of Artificial Intelligence on Budgeting Optimization and Financial Forecasting Accuracy in Management Accounting: A Case Study of Manufacturing Companies in Tehran Province The Effect of Artificial Intelligence on Budgeting Optimization and Financial Forecasting Accuracy in Management Accounting: A Case Study of Manufacturing Companies in Tehran Province 21 42 227140 10.22034/smajournal.2025.518968.1014 FA Roya Darabi Full Professor and Faculty Member, Department of Accounting, Islamic Azad University, South Tehran Branch, Tehran, Iran. 0000-0003-1385-1034 Mehdi Dolatshahi PhD Student in Accounting, Islamic Azad University, South Tehran Branch, Tehran, Iran. 0009-0006-5403-8495 Journal Article 2025 04 24 The primary aim of this study is to explore the impact of artificial intelligence (AI) on budgeting optimization and financial forecasting accuracy in management accounting. Traditional forecasting and budgeting methods often face limitations such as human errors, inefficiencies in resource management, and an inability to analyze complex financial data. This study examines the role of AI, using machine learning algorithms and neural networks implemented via MATLAB software. The statistical population includes manufacturing companies in Tehran Province. Data was collected through closed questionnaires, semi-structured interviews, and analysis of financial reports. The results reveal that AI reduces financial forecasting errors, optimizes budgeting processes, and significantly improves the speed of data processing, identification of complex financial patterns, and risk management. Findings further show that companies using AI achieved up to an 88% increase in forecasting accuracy and demonstrated superior performance in budgeting, with an average score of 4.5 out of 5 compared to companies not employing AI. This study concludes that investing in AI technologies can create a fundamental transformation in financial and operational management. Particularly in manufacturing industries, AI not only raises forecasting accuracy and overall efficiency but also empowers financial managers to make data-driven decisions with lower risk. It is recommended that future research explore the challenges and barriers to implementing AI technologies across various industries to better understand how these innovations can effectively integrate into financial management systems. The primary aim of this study is to explore the impact of artificial intelligence (AI) on budgeting optimization and financial forecasting accuracy in management accounting. Traditional forecasting and budgeting methods often face limitations such as human errors, inefficiencies in resource management, and an inability to analyze complex financial data. This study examines the role of AI, using machine learning algorithms and neural networks implemented via MATLAB software. The statistical population includes manufacturing companies in Tehran Province. Data was collected through closed questionnaires, semi-structured interviews, and analysis of financial reports. The results reveal that AI reduces financial forecasting errors, optimizes budgeting processes, and significantly improves the speed of data processing, identification of complex financial patterns, and risk management. Findings further show that companies using AI achieved up to an 88% increase in forecasting accuracy and demonstrated superior performance in budgeting, with an average score of 4.5 out of 5 compared to companies not employing AI. This study concludes that investing in AI technologies can create a fundamental transformation in financial and operational management. Particularly in manufacturing industries, AI not only raises forecasting accuracy and overall efficiency but also empowers financial managers to make data-driven decisions with lower risk. It is recommended that future research explore the challenges and barriers to implementing AI technologies across various industries to better understand how these innovations can effectively integrate into financial management systems. https://www.smajournal.ir/article_227140_f33c1ca879525cb7f9ed1f5678663016.pdf