This study explored the impact of Artificial Intelligence on financial reporting accuracy in Nigerian oil and gas companies. By automating financial processes, AI improves data accuracy, mitigates risks, and enhances forecasting, supporting better decision-making. The study, using a mixed-methods approach, found a strong positive correlation (r = 0.85) between adoption and improved reporting accuracy, accounting for 72% of the variance in accuracy. The role in reducing errors, improving compliance, and providing more accurate financial forecasts was evident. However, challenges such as high implementation costs, data quality issues, resistance to change, and a lack of expertise were identified. The study recommends increasing investment in technologies, improving data management, developing literacy programs, and enhancing driven regulatory compliance tools to overcome these challenges and further improve financial reporting.