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Keen Eye prevents other Pokémon from lowering the accuracy stat stage of the Pokémon with this Ability. It does not prevent Spectral Thief from stealing (i.e., resetting) positive stat changes.
Effects that decrease accuracy without using stat stages, such as Wonder Skin and Sand Veil, are unaffected by Keen Eye.
Keen Eye now also ignores the target's evasion stages.
Outside of battle
From Pokémon Emerald onward, if a Pokémon with Keen Eye is in the first place in the party (even if fainted), there is a 50% chance it will prevent a random wild encounter that would have occurred if the wild Pokémon would be at least 5 levels lower than the Pokémon with Keen Eye. It shares this effect with Intimidate.
Generation VIII onwards
Keen Eye appears to have no effect outside of battle.