Finance teams face significant challenges while figuring out fraudulent expenses. As a lot of resources get involved, it has become easy to accept some kind of dishonest acts. That’s why most companies are switching from paper-based set-ups to an expense management solution. However, finance professionals have got a more powerful weapon to fight fraud – artificial intelligence (AI).
Artificial intelligence helps analyze data and identify patterns and risks in expense management. The technology uses a set of algorithms to identify spending habits of employees and trigger alerts when a suspicious act is found. It monitors all employee transactions – their frequency, where they are from, and the type of devices they use. The more intelligence the systems receive, the smarter they become at differentiating normal and suspicious expense claims.
Expense Management Solution with Artificial Intelligence
Expense management system automatically checks expenses against policies. The system will make sure the claim will comply with policy limits and any custom limits that have been set. Users will be notified through notifications, and the finance team gets alerts in the case of any discrepancies. It makes expense management proactive instead of being a reactive process by identifying issues before they happen.
With AI, you can analyze & interpret expense data and detect suspicious expense claims. You can explore spending patterns and employee behaviors in various roles. Also, machine learning technology would easily figure out common traits that are done by employees who falsify or exaggerate claims. It makes it possible for you to identify potential expense fraud before it happens. In addition, this technique would provide a map to the organization indicating both the hot as well as cold risk areas.
Actions can be taken immediately where the risks are highest and you can enforce robust compliance procedures. All in all, artificial intelligence offers numerous benefits to businesses and prevents the potential possibilities of expense fraud.