In today’s digital era, the rise of artificial intelligence (AI) has brought wide scope and possibilities along with unprecedented threats to economic crime. AI can be a powerful tool in combating economic crime. The advanced technology of AI is used almost in all fields as it is easy to administer all tasks.
With the ability to analyse vast amounts of data and identify patterns, AI has revolutionised the revenue department and the economic system. The wide range of applications with the AI mechanism helps to analyse huge amounts of financial transactions, detecting anomalies and flagging suspicious activities that might otherwise go unnoticed.
Recently Google Cloud launched its AI-driven anti-money laundering tool. This marks a big departure from the traditional AI economic crime tools, as rather than starting with human-determined rules to tell the AI where to look, Google’s tool does it all itself.
It was easy to manipulate the technology designed to thwart the criminals as nowadays cyber criminals are relying on AI to develop sophisticated attacks. The most recent trend is that AI-powered bots can mimic human behaviour, bypassing security protocols and infiltrating systems undetected.
Criminals are continuously refining their techniques, exploiting innovative technologies and AI to find new ways to evade detection. Intruding the privacy of persons which ultimately creates security issues is a vital threat. AI algorithms need access to vast amounts of personal data to effectively detect and prevent economic crimes. Stricter regulations across the globe are anticipated, but the criminals are unlikely to pay any attention to them.
Implementation of AI in Economic System; Is it Boon or Bane?
Predictive Policing is a new method to prevent economic crimes. Utilizing AI algorithms, it proactively prevents crime by analyzing vast data for hotspot identification and real-time insights. Advantages include resource efficiency and objective decision-making. Addressing ethical considerations ensures responsible AI implementation for safer communities.
The application of artificial intelligence (AI) uses algorithms to analyze vast amounts of data and make predictions about future criminal activities. By harnessing the capabilities of AI, predictive policing aims to proactively address crime hotspots, optimize resource allocation, and enhance public safety.
Predictive policing is an innovative method that uses data analysis, statistical modelling, and AI algorithms to forecast when and where crimes are likely to occur. It relied on historical crime data, geographical information, weather patterns, and other relevant factors to identify crime hotspots and patterns.
Challenges in AI
“With the advancement of technology and Artificial Intelligence, economic offences like money laundering have become a real threat to the functioning of the financial system of the country and have become a great challenge for the investigating agencies to detect and comprehend the intricate nature of transactions, as also the role of the persons involved therein.”, the apex court in its recent judgement in the case of Tarun Kumar v. Assistant Director Directorate of Enforcementheld.
Technology and Artificial Intelligence (AI) have aided economic offences like money laundering in becoming a real threat to the financial system of the country. Many banks and large corporations adopt artificial intelligence to detect and prevent fraud money laundering and economic crimes. AI is not a Golden tool, even it can significantly enhance the financial industry’s ability to combat financial crime. Just like a coin has two sides the use of advanced technologies like AI in a country’s economic system would also have positive and negative effects.