Chapter 13: The Profit Paradox: Assessing AI’s Financial Impact Through the Lens of Cost Accounting Systems

This study investigates the short- and long-term impact of artificial intelligence (AI) on organizational profitability within the frameworks of job order and process costing systems. While AI is often promoted as a catalyst for operational efficiency and innovation, this research challenges the assumption that AI investment consistently leads to increased profitability. Through a dual-method approach combining linear regression analysis and qualitative case studies of Dell Technologies (job order costing) and Continental AG (process costing), the study reveals that profitability outcomes vary significantly depending on the cost accounting structure. The findings demonstrate that although AI can enhance efficiency and sales, these benefits do not always translate into higher profits. In fact, rising overhead costs and the limitations of traditional costing systems may obscure or diminish financial gains. The study concludes that AI should be viewed not as a guaranteed profit driver but as a strategic tool whose success depends on effective cost integration, system compatibility, and financial transparency. This research contributes a critical perspective to the discourse on AI adoption, emphasizing the importance of aligning technological investment with appropriate managerial accounting practices.