OECD Link: Governing with Artificial Intelligence
The OECD report on Artificial Intelligence in Public Financial Management (PFM) examines how governments are leveraging AI to improve fiscal governance, efficiency, and service delivery. Drawing on over 200 real-world examples across 11 government functions, it highlights AI’s potential to enhance forecasting, automate processes, and detect fraud. While showcasing these benefits, the report also addresses critical risks such as algorithmic bias, lack of transparency, and ethical concerns. It concludes by emphasizing the importance of robust governance frameworks, ethical standards, and inclusive stakeholder engagement to ensure responsible and effective AI adoption in the public sector.
Read MoreKPMG Blog: Transforming Public Finance – AI’s Role in Advancing Fiscal Transparency
The KPMG blog highlights how Artificial Intelligence (AI) is reshaping Public Financial Management (PFM) in India by enhancing fiscal transparency, efficiency, and citizen engagement. It emphasizes the role of AI in real-time monitoring of public funds, detecting anomalies, improving budget forecasting, and enabling data-driven, performance-based resource allocation. Case studies from Indian states like Karnataka illustrate the use of AI tools such as dashboards, natural language processing, and large language models to improve governance and public service delivery. The blog concludes that AI can transform fiscal systems into transparent, accountable, and citizen-centric platforms, setting global benchmarks for ethical and intelligent
Read MoreIMF Blogpost: Making Artificial Intelligence Real: Lessons Learned from Georgia
The IMF PFM Blog post on Georgia’s AI initiative details the successful deployment of an AI model by the Treasury to flag high-risk payment transactions. Launched in March 2025, the model reviewed over 800,000 transactions in its first three months, achieving a 95.2% true positive rate—closely aligning with expert human judgment. Despite challenges like system performance, explainability, and the need for regular retraining, the project demonstrated that AI can significantly enhance efficiency without replacing human oversight. Encouraged by these results, Georgia plans to expand AI use to other Treasury functions, including green channel payments, cash management, and financial reporting.
Read MoreDeloitte blog post on Generative AI in Financial Reporting and Accounting
The Deloitte blog post titled "Generative AI in Financial Reporting and Accounting" explores how generative AI (GenAI) is transforming the accounting profession. It highlights how GenAI tools can streamline tasks like research, documentation, and analysis, allowing professionals to focus on higher-value work. While GenAI enhances efficiency and insight generation, it doesn't replace human judgment—accountants must still verify accuracy and apply professional skepticism. The article illustrates this through a day-in-the-life scenario of a junior analyst using GenAI to draft accounting papers and analyze guidance. Ultimately, Deloitte emphasizes that well-prepared finance teams can harness GenAI to elevate the quality and speed of financial reporting
Read MoreThe IMF blog post - The AI Revolution in Tax Administration: Armenia is Leading by Example
The IMF blog post “The AI Revolution in Tax Administration: Armenia is Leading by Example” highlights Armenia’s pioneering use of AI to modernize tax administration. With support from the World Bank, Armenia’s State Revenue Committee launched AI tools to enhance tax compliance, fraud detection, and risk management. Key success factors include strong leadership, partnerships with academia (notably the American University of Armenia), and a focus on practical, high-impact use cases like invoice analysis and fraud ring detection. The initiative also emphasizes responsible AI use, addressing risks like bias and data privacy through transparency, cybersecurity, and stakeholder engagement. Armenia’s approach offers a replicable model for other developing nations.
Read MoreODI Publication: Public finance in the digital era - emerging themes
This report explores digital-era PFM reforms in public health, climate adaptation, local governments, tax administration, AI, and fiscal transparency. It highlights improved health policy, enhanced climate budgeting, digital tools for local governments, better tax collection, AI applications, and user-centric fiscal transparency. The Annex offers guiding questions for assessing these themes.
Read MoreBimi Unveiled: A New Era of AI-Driven Governance and Open Data in Nigeria
BudgIT launched Bimi, an AI-powered chatbot, to democratize access to government data at Lagos Open Data Day 2025. This initiative aims to enhance transparency, accountability, and civic participation by providing real-time insights on public finance. Checkout the Link:
Read MoreFrom 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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