In a recent guest post for Corporate Compliance Insights, I discussed some of the significant business benefits that are emerging from advancements in artificial intelligence and NLP (natural language processing) technologies.
The article, “Exploring the Upside of Evolving AI Business Solutions”, addresses the fact that one of the biggest paybacks of incorporating leading-edge AI platforms into the workplace comes in the form of improved governance, risk management, and compliance (GRC). With timely and informed decisions lying at the heart of effective GRC measures, many companies are turning to ultra-fast and highly targeted back-office technology to not only enhance their decision-making processes, but to reduce expenses and expand productivity at the same time.
Many of the recent advances in artificial intelligence owe their practicality to the level of sophistication that’s now possible with natural language processing. T&E expense report audit solutions, like AppZen’s ReceiptIQTM for example, capitalize on NLP capabilities to read, apply context, and recognize data patterns in virtually any form of written text. This not only removes the repetitive work of reviewing vast numbers of expense reports from the human equation, it also means that cross-checking receipts and other expense data against thousands of external reference sources can happen in real time.
When it comes to monitoring compliance and managing risk, AI auditing solutions are beginning to play an important role in everything from flagging non-compliant expense reports, to exposing fraud or potential legal entanglements. Advanced software applications easily detect unauthorized charges and upgrades on employee expense documents – think alcohol or first-class upgrades – while at the same time verifying the legitimacy and background of would-be business associates.
The unfortunate fact is that most organizations can afford neither the time nor the workforce necessary to manually audit more than a random sampling of their employee expense reports in any given period. Outsourcing audit to lower cost countries has gotten some companies part of the way there, but even outsourcing proves ineffective. Outsourcing introduces issues of its own, like data privacy, lack of contextual understanding, and long turn-around times. Even accuracy is a concern – our clients who went the outsourcing route prior to AppZen found that we were able to discover 10-times more errors and fraud than the manual audit outsourcing services they had been using.
With the average business typically losing about 5% of its revenues to fraud every year – whether that fraud is intentional or accidental – the implementation of progressive AI business solutions offers one of the best routes to avoiding the ongoing risks associated with non-compliance.