Author(s): Dr.C.Mallesha, M.Hymavathi
The emergence of Artificial Intelligence (AI) has revolutionized various industries, including accounting, where its applications have significantly enhanced fraud detection capabilities. This paper explores the pivotal role of AI in reducing risks and enhancing financial security through fraud detection in accounting. AI-powered algorithms with advanced anomaly detection and pattern recognition capabilities analyze financial data to identify suspicious activities. Real-time monitoring, NLP, and behavioural biometrics enhance the system's ability to swiftly detect and respond to fraudulent actions. Predictive analytics and data integration offer a holistic view of financial activities, reducing false positives and improving accuracy. Maintaining detailed audit trails of AI decision-making processes ensures transparency and traceability, fulfilling compliance and regulatory requirements. However, while AI is a powerful tool, it is not a standalone solution. It must be integrated with robust internal controls and human oversight to achieve optimal protection against fraud and enhance financial security. Continuous updates are crucial to stay ahead of evolving fraud tactics, making AI an essential tool in securing financial systems and organizations. The paper deals with in studying the various types AI techniques that are present in fraud detection and also presents the data regarding the effectiveness in fraud detection.