AI, ML Helped In Unearthing Many Fraudulent Cases In Many States: CAG

New Delhi: Comptroller and Auditor General (CAG) of India K Sanjay Murthy on Friday said artificial intelligence (AI) and machine learning (ML) have helped in unearthing a large number of fraudulent cases in many states during audit of beneficiary's schemes, as he stressed on extensive use of such digital tools in forensic auditing.

However, the CAG noted that state governments are making advances in the adoption of technology in bringing about greater efficiency in the public financial management framework. “The roll out of critical public finance IT infrastructure will not only strengthen the digital footprint in states but also bring in greater transparency and accountability, thereby aiding the governance,” Murthy said, while addressing the conference of state finance secretaries here.

IT infrastructure includes Integrated Financial Management Information System (IFMIS), Works and Accounts Management Information System (WAMIS), Government e-Procurement Platforms (GePNIC), e-voucher Systems, Digital India Land Record Modernisation Programme (DILRMP). “However, there is a lot of difference in the maturity level of these digital applications,” Murthy said, citing certain states.

The CAG also said that one of the positive outcomes of digitisation and integration is already in clear evidence with respect to finalisation of monthly civil accounts of states. “At present, we are working on priority to fully utilise the various latest technological solutions available for risk assessment and distance/remote auditing,” he said, adding the CAG has successfully conducted the remote audit of GST, stamp and registration, e-procurement, works audit, DBT schemes in some states.

Now, the target is to roll out this remote audit in all departments across the country wherever departments have digitised their data/records. “Another key area of remote audit is to find out the tempering of electronic documents. With the help of AI/ML, we found a large number of fraudulent cases in many states while auditing their beneficiary's schemes,” the CAG added.