Within public sector audits, accountability and transparency are two main pillars. The public sector is always alert to ensure that finances are being managed ethically and responsibly while updating the authorities about potential financial failures. In this current pandemic, huge volumes of funds are being distributed to individuals and companies from the public funds, imposing excessive pressure on audits to ensure that the funds are being put to use correctly.
AI can simplify this process. Public sector organizations can identify and rectify potential problems before they cause issues, thereby saving companies and individuals lots of money and time.
COVID-related fraud could end up costing taxpayers a few billions as a result of criminals taking advantage of the coronavirus pandemic, as per the UK’s National Crime Agency. Fraudulent activities currently range from bouncing bank loans to misuse of job retention schemes.
AI For Public Sector Audit
To eliminate current fraudulent activities and gain significant insight into the area of work, the public sector must incorporate AI for a data-led approach. By adopting AI in the public sector’s IT systems, errors can be detected, mismanagement of funds can be identified and the whole process can be streamlined to eradicate potential threats.
Data resources play a major role in this action, as governments hold a vast amount of data. However, there is a possibility that the delivery speed of coronavirus financial and funding responses might have created voids in data collection which will be needing urgent fixing. It must be prioritized to find these voids in existing data and simultaneously use machine learning to identify errors and glitches as a result of systematic error/fraud.
The insight obtained from using ML and AI in the public sector bodies may lead to the utilization of predictive analysis to improve control and also move away from an assumption model. By understanding the key indicators of fraud, AI can alert the systems automatically when a claim looks suspicious, which can drastically reduce the risk of fraud.
Incorporating the use of AI in public sector bodies might seem daunting, but it is highly essential to ensure safety. Inaction after repeated attacks and threats will add up and result in greater misuse of public funds. The public sector, businesses, and individuals must be skilled to operate safely in such circumstances.
This safety step requires the right people to spend time searching for the right type of data, identifying problems, and implementing new controls and safety measures. Within an artificial intelligence-led approach, public sector bodies, businesses, and individuals too can learn about what worked and what did not during this unprecedented release of public funds.
By utilizing AI within the public sector, people will get an opportunity to accurately identify fraud.