Innovation Update

Demystifying AI in anti-fraud and compliance efforts



Artificial intelligence and machine learning seem to be included in most technology discussions. But what do these potential technologies really mean for fraud examiners and compliance professionals?

Michael is head of investigations at Ryan Ltd., a mid-sized, global manufacturing company. (All names and company references in this case example are fictional.) The company recently undertook an enterprise-wide digital transformation initiative that included various uses of artificial intelligence (AI). Michael’s compliance and investigations team was no exception. So, he wasn’t surprised when Tom, the company’s global chief compliance officer, asked him to explore how his team could apply AI in their proactive fraud risk assessment and monitoring efforts plus their reactive investigations and legal department. But where does Michael start?

In the ACFE/SAS 2019 Anti-Fraud Technology Benchmarking Report, 25% of companies surveyed said they expect to adopt AI and/or machine learning (a subset of AI) in the next one to two years. And many issues of Fraud Magazine contain technology advertisements touting AI or machine learning in some form to improve fraud detection. Every fraud, risk or compliance conference features at least one session on AI and the benefits it can provide a fraud risk management and compliance program.



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