This article reveals the transformative impact of AI on creative accounting techniques and examining how innovative algorithms and machine learning models are reshaping traditional accounting practices. As artificial intelligence technologies become increasingly sophisticated, they offer new tools for execution of creative accounting practices. The arrival of Artificial Intelligence has significantly transformed the landscape of accounting, introducing both opportunities and challenges in the realm of creative accounting. While AI can enrich transparency and accuracy in financial reporting by identifying irregularities and potential manipulations, it can also presents opportunities for more sophisticated and harder-to-detect forms of earnings management. Artificial Intelligence tools can helps fraud detection, offering unprecedented precision and speed and regulatory compliance. Though, the integration of AI also presents risks, particularly concerning the potential for sophisticated manipulation and the ethical implications of automated decision-making. This role of AI necessitates a closer examination of its ethical implications and the development of robust regulatory frameworks. This study discusses the risks and benefits related with artificial intelligence in accounting, emphasizing the need for balanced approaches that leverage artificial intelligence for improved financial integrity while mitigating its potential for abuse in creative accounting.