One of the most significant obstacles to economic growth is corruption, it hampers the governance and social development as well. Starting from fraudulent financial transactions to bribery and embezzlement, corruption erodes trust in institutions and weakens economies. With time, artificial intelligence (AI) is becoming an aid to fight against corruption, and empowering transparency, enhancing efficiency and bringing accountability to the various systems.
1. AI in Fraud Detection & Anomaly Recognition
Earlier manual edits and whistleblower reports were among the mostly used fraud detection methods. AI, however, can analyze vast datasets in real time, identifying anomalies that indicate corrupt activities. Advanced machine learning (ML) algorithms detect patterns of fraud by analyzing financial transactions, procurement records, and tax filings, making it easier to uncover hidden corruption schemes.
For example, AI-powered forensic accounting tools can flag suspicious expense claims or unusually high payments to third parties, triggering further investigation before the damage is done. Thorough screening can also assist in document verification, ensuring that fraudulent invoices or identity theft cases are caught early.
To know more: https://www.infosysbpm.com/blogs/bpm-analytics/financial-fraud-detection.html
2. Predictive Analytics for Risk Assessment
Many organisations are leaning towards AI for Risk Assessment. On the basis of past datasets, AI can examine risk scores and assign them to vendors, businesses and government systems. Various ML models are being used to improve and adapt the assessment process as they continuously analyse more datasets.
Additionally, blockchain-powered AI solutions provide immutable records of financial transactions, further reducing opportunities for fraud.
Governments and financial institutions can leverage AI to monitor and predict corrupt activities, ensuring proactive measures are in place to prevent potential misconduct.
To know more: https://kpmg.com/ae/en/home/insights/2021/09/artificial-intelligence-in-risk-management.html
3. Automated Document Analysis & Compliance Monitoring
Often fake and fraudulent documents go unnoticed through the traditional document analysis systems. Therefore, tools like Natural Language Processing (NLP) driven by AI can scrutinise the process and identify the irregular clauses, fake contracts, or irregularities in financial transactions.
High-end systems can use AI to implement anti-corruption laws by swiftly sorting, identifying and addressing potential breaches. This will reduce the dependency on traditional methods of manual audits.
To know more: https://www.freyrsolutions.com/blog/real-time-compliance-monitoring-with-ai-a-new-era-for-pharma-companies
4. Enhanced Whistleblower Protection & Reporting Systems
Whistleblowers are essential in the fight against corruption, but with a secure and anonymous reporting channel, they can be safeguarded from outside threats. Hence, AI can help in establishing a reporting system, which can allow the whistleblowers to report unethical and illegal activities without their identity revelation.
AI chatbots equipped with NLP can also analyze whistleblower reports, filtering out false claims and prioritizing legitimate concerns, making investigations more efficient and effective. Additionally, sentiment analysis AI can track public discussions on social media and news platforms, identifying patterns and emerging corruption scandals before they escalate.
To know more: https://gca.isa.org/blog/the-role-of-ai-in-whistleblower-identity-protection-and-incident-reporting
5. Blockchain for Transparency & Accountability
Blockchain technology combined with AI can ensure safe financial transactions and traceable government contracts, thus enhancing the transparency of the systems. Advanced AI-powered contract management will eliminate the chances of bribery and data manipulation.
For instance, blockchain and AI can be used to track public spending, ensuring that funds allocated for infrastructure, healthcare, and education reach their intended destinations without interference. AI-powered anomaly detection can flag suspicious activity within these transactions, providing further safeguards.
To know more: https://www.linkedin.com/pulse/how-blockchain-ensures-transparency-accountability-ai-models-mkxwc/
How Malaysia is leveraging AI to enhance its anti-corruption efforts?
Recently the Malaysian Anti-Corruption Commission (MACC) is incorporating AI and digitalising their investigations leading to minimal financial leakages. Furthermore, MACC intends to use real-time monitoring technologies and predictive analytics to detect suspect financial activity more efficiently. These tools will help to streamline investigations, shorten response times, and enable data-driven decision-making in anti-corruption measures.
The Future of AI in Anti-Corruption
As AI continues to evolve, its role in combating corruption will only become more significant. Governments, businesses, and regulatory bodies must embrace AI-powered solutions to ensure transparency, enhance compliance, and hold wrongdoers accountable.
At Quocent, we ensure to use AI as a game-changing ally in the fight against unethical practices. By leveraging AI, we can build a world where trust, integrity, and accountability are at the core of governance and business operations.
