From Kefron Website: AI in Public Financial Management: Overcoming Challenges and Boosting Efficiency
The article highlights AI's transformative role in public financial management, offering automation, improved accuracy, and better decision-making. Despite challenges like outdated systems and skill gaps, case studies show AI solutions, streamline processes and enhance efficiency. Overcoming barriers through modernization and training is key to unlocking AI's potential in PFM.
Read MorePFMS 2.0 in India
The Public Financial Management System (PFMS) is a web-based application developed by the Controller General of Accounts (CGA) under the Ministry of Finance, India. Launched in 2009, it tracks funds released under all Plan schemes and reports expenditure in real-time. The system has expanded to include direct payments to beneficiaries and aims to digitize government accounts. PFMS 2.0 leverages AI for enhanced predictability, fraud detection, and data management, ensuring efficient and secure financial operations.
Read MoreAI in Cash Flow Forecasting
Read latest form J.P Morgan on how AI is transforming cash flow forecasting, enabling treasurers to navigate complex financial landscapes with unprecedented accuracy and foresight.
Read MoreIMF PFM Blog: Georgia using AI for Payment Risk Managment
The Georgian State Treasury has implemented a robust public financial management system (PFMS) with integrated systems like e-Treasury and e-Budget. Payments are processed through centralized channels, with AI-based risk detection systems developed in collaboration with the IMF to identify anomalies and improve review quality. These AI applications are expected to enhance the efficiency and reliability of the payment process, significantly improving payment risk management within the Treasury.
Read MoreOECD Paper: Artificial Intelligence and Public Financial Management
The document explores the application of artificial intelligence (AI) in public financial management (PFM), highlighting its potential to enhance various functions such as macroeconomic forecasting, spending decisions, budget planning, financial management, and stakeholder engagement. It discusses the benefits of AI, including improved accuracy and efficiency, while also addressing challenges like data quality, transparency, and the need for robust IT infrastructure. The paper emphasizes the importance of developing government-wide standards and continuous professional development to effectively integrate AI into PFM, ensuring ethical use and maintaining accountability.
Read MoreFreeBalance: How can AI transform Public Financial Management?
Integrating AI into public financial management (PFM) offers numerous benefits, including task automation, enhanced decision-making, increased efficiency, and improved transparency. AI can automate routine tasks like payment processing and budget management, freeing up staff for strategic initiatives. It analyzes vast data to reveal patterns, aiding better resource allocation and risk management. AI optimizes workflows, reduces errors, and boosts financial reporting accuracy, fostering public trust. It also detects fraud by identifying suspicious activities and assesses financial risks. AI enhances budgeting, tax collection, and financial planning, helping governments anticipate and address potential risks. Various governments, including the UK, Singapore, and India, are already leveraging AI in PFM, despite challenges like data quality and security. The potential benefits of AI in PFM are significant, promising improved efficiency, transparency, and decision-making for better outcomes for citizens and taxpayers.
Read MoreDeloitte: Empowering accounting professionals: The transformative role of Generative AI in accounting and financial reporting
Generative AI (GenAI) has the potential to revolutionize accounting and financial reporting by automating tasks such as planning, research, and product development, thereby enhancing efficiency and enabling professionals to focus on strategic insights. While GenAI can accelerate document preparation and data analysis, it does not replace human judgment and experience. Instead, it supports professionals in improving quality and providing deeper insights. Despite regulatory and risk considerations, GenAI is advancing rapidly, and well-prepared accounting functions can leverage its capabilities for better financial reporting, competitor analysis, and documentation. However, experienced professionals must oversee and evaluate GenAI outputs to ensure accuracy and relevance.
Read MorePress Release: U.S. Department of Treasury Releases Request for Information on Uses, Opportunities, and Risks of Artificial Intelligence in the Financial Services Sector
The U.S. Department of the Treasury has issued a request for information (RFI) to gather public input on the uses, opportunities, and risks of artificial intelligence (AI) in the financial services sector. This initiative aims to enhance Treasury’s understanding of AI applications and their impact on consumers, investors, financial institutions, and other stakeholders. The RFI seeks insights on how AI can promote inclusive and equitable access to financial services, as well as recommendations for improving legislative, regulatory, and supervisory frameworks. The public is invited to submit comments within 60 days, which will be publicly viewable.
Read MoreUSA: Treasury Announces Enhanced Fraud Detection Process Using AI
The U.S. Department of the Treasury announced it has recovered over $375 million through an enhanced fraud detection process using AI, implemented at the start of Fiscal Year 2023. This initiative addresses a 385% increase in check fraud since the pandemic. The Office of Payment Integrity (OPI) within the Bureau of the Fiscal Service has utilized AI to detect and recover fraudulent payments in near real-time. Deputy Secretary Wally Adeyemo emphasized the commitment to protecting taxpayer dollars and enhancing fraud detection. The rise in Suspicious Activity Reports (SARs) related to check fraud, which doubled from 2021 to 2022, underscores the importance of this initiative. The AI process, in collaboration with federal law enforcement, has led to multiple active cases and arrests.
Read MoreAI in Public Financial Management: Transforming Fiscal Policies
Discover the role of AI in improving the efficiency and effectiveness of public financial management. Learn how countries are leveraging AI to streamline fiscal operations.
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