In the recent times, the financial sector has witnessed number of financial scams in the markets raising concerns for the professionals and the auditors accountable for ensuring transparency and accuracy in the day-to-day auditing activities. Globally, the use of artificial intelligence has prominently increased the ability of a machine combined with human intelligence and has added to the ability of traditional methods to deal with financial information manipulation. The study aims to identify the mediating role of artificial intelligence tools in the forensic accounting and the detection of financial frauds. The study has developed a research model using structural equation modeling to examine the influence of forensic accounting in the detection of financial frauds. The results can help professionals understanding the benefits of AI technology in the forensic accounting domain that can facilitate combating fraud.