enterprisesecuritymag

AI For Fraud Detection in Government Organizations

Enterprise Security Magazine | Monday, October 18, 2021

Incorporating artificial intelligence into the agency's daily operations helps employees comprehend the strategies and determine how to use them in their respective fields.

FREMONT, CA: There are new and effective instruments for probing fraud in an era of digital technology. Officials can create more advanced fraud detection methods because of the quantity of data provided by electronic records, contracts, emails, text messages, and bank transfers. Because of the vast volume of digital data and the ease with which both language and data can be analyzed, Artificial Intelligence (AI) and machine learning are ideal for fraud detection.

The idea is to integrate AI into operational settings and mission priorities to assist administrators in performing their duties more efficiently. AI must be integrated into agency operations rather than being treated as a technical device distinct from the organization's most important tasks. Incorporating AI into the agency's daily operations helps employees comprehend the strategies and determine how to use them in their respective fields.

Algorithms for fraud detection are already being used widely in the private sector, and they are proving to be useful analytic tools. Banks, educational institutions, hospitals, and manufacturing companies use software to track financial transactions and ensure that both employees and clients are following proper protocols.

Government agencies must implement similar financial oversight capabilities to reap the benefits of technology. In addition, AI is a robust tool for analyzing financial transactions, improving operational efficiency, and examining inefficient or unjustified spending on a wide scale. These strategies assist the public sector in improving its performance and protect public resources more effectively.

The good news is that several federal entities is already using AI. A report from 2020 found that 45 percent of the 142 agencies examined were employing AI or machine learning.  To summarize, the federal government is experiencing an exciting period of responsible AI innovation. Algorithms are improving worker productivity, service delivery, and financial oversight by transforming agency performance in various ways. However, fundamental obstacles must be addressed to reap the benefits of the AI revolution fully. A series of reforms that, if implemented, will make AI more accountable, train the workforce, and empower agencies and departments to monitor budgetary and financial operations more effectively. Making progress in these areas will improve government action and give taxpayers more trust in government performance.