AI proves effective in tackling bribery payments

Harnessing AI can combat bribery following its global value increase to nearly USD 1.75 trillion in 2021.

The adoption of artificial intelligence (AI) and machine learning (ML) in combating corporate bribery is revolutionizing the fight against corporate bribery, fostering transparency and deterring unethical practices across industries.

Alex Wong, Senior Director of Data & Analytics at FTI Consulting, said that AI-driven systems are proving effective in discouraging unethical behaviors by increasing the likelihood of detection – a key deterrent factor.

“The presence of AI-powered systems for detecting bribery and corruption...discourages individuals from engaging in such activities,” Wong explained. This, in turn, promotes a culture of compliance and ethical behavior, extending beyond internal staff to include other stakeholders like vendors.

Wong emphasized that AI and ML are not standalone solutions as their effectiveness hinges on a holistic approach that includes strong leadership, robust internal controls, employee training, and collaboration with external authorities.

He outlined three key areas for scrutiny: unusual financial transactions, anomalies in procurement processes, and employee behavior patterns.

“First, we'll be looking at unusual financial transaction. Using AI algorithm, we can analyze financial data to identify transaction that deviate from expected pattern, such as frequent payment, unusual recipient, or unusual amount. And most importantly, this unexpected pattern is specific to that industry or to that company,” he said.

Additionally, AI can analyze employee communications to pre-emptively identify non-compliance issues.

Beyond the reduction of compliance costs, Wong pointed out the long-term benefits of implementing AI in detecting improper payments, with one significant advantage being enhanced brand reputation.

“By demonstrating a commitment to combating bribery and corruption...organizations can enhance their brand image,” he stated, adding that this commitment to ethical practices can attract investors, customers, and business partners who value integrity.

Another critical advantage is the avoidance of hefty penalties imposed by regulatory authorities, where Wong said that early detection of such payments through AI could save companies substantial amounts in penalties.