This article was written in conjunction with PwC’s 2018 Global Economic Crime and Fraud Survey (Malaysia Report).
Gone were the days where artificial intelligence (AI) meant the invention of robots and their object-collecting abilities.
Technology has proven time and time again that it has stayed to fight the good fight.
However, even with the increasing use of technology, economic crimes still remain inevitable in all industries.
Imagine suffering a loss of USD1 million or more.
That is what 22% of the respondents in a study by PwC have reported!
This is actually slightly higher than the South East Asian region (15%) and globally (18%).
So what exactly is Artificial Intelligence (AI) and what is all the rage about?
AI basically means the emphasis of the creation of intelligent machines that works and reacts like humans.
AI must access objects, categories, and a database in order to create the ability to identify patterns.
As such, AI does require a human touch before they could understand the needs and wants of human beings.
It is not something like from the movies *cough* Jarvis from Iron Man *cough*.
So what can AI do to prevent corruption?
Machine learning, predictive analysis and other AI techniques are some of the features that could help fraud detection and defense.
This is because, with AI, it could predict and analyse the human behaviour.
Having said that, AI could easily strengthen the internal controls of a business, based on the survey conducted by PwC.
AI could provide solutions like monitoring communications, detecting the anomaly and even provide big data to ensure the prevention of fraud.
With these, owners everywhere are able to prevent fraud or crime at any time of the day.
Why are there still such high rates of economic crimes in Malaysia?
Malaysians are still slow at adopting the technology.
As little as 11% of Malaysian businesses are considering the implementation of AI.
It is hard for them to implement advanced analytics to combat or monitor fraud and other economic crime.
These figures are considerably lower compared to global respondents (34%) and Southeast Asian respondents (23%).
Malaysians are hesitant to grow beyond rule-based fraud detection, making this country twice as susceptible to economic crimes.
China and North America have GDP boosting up to 26% and 14% respectively after the use of AI. The perfect example as to why Malaysia needs to adopt technology quick and fast!
So, start trusting Artificial Intelligence and disruptive technology!
No, AI would not take over the human race.
It is time to trust this technology as it gets the job done in no time at all.
Economic crime should not have a reason to rise as technology enables monitoring in real time. Even most respondents agree that technology provides strong analytic reports.
Malaysian businesses must learn not to hesitate when it comes to economic crime.
This could greatly help achieve a balance in mapping the organisation’s anti-fraud program!
** This article was written by Elanor Oh, an intern at CanLaw Asia. A bit kooky and a wordsmith, Elanor is a born-again tech-geek with a passion for AI and big data.