The development of artificial intelligence (AI) has brought significant changes to the way organizations operate. One of the key advantages of this technology is its ability to process vast amounts of data. This capability can help organizations detect various forms of fraud. However, it also raises a new question: if AI can detect fraud, does that mean humans are no longer needed?
This question became the main topic of an episode of FEB UGM Podcast titled “Uncovering the Future of Fraud Detection: AI or Humans?” featuring Dr. Putri Wulanditya, Vice Rector for Student Affairs and Partnership at Universitas Hayam Wuruk Perbanas and Director of Research at the ACFE Indonesia Chapter. In the discussion, she explained that humans and AI play overlapping yet complementary roles in fraud detection.
Accelerating Fraud Detection
Putri explained that AI’s ability to process large volumes of data quickly makes it a valuable tool for detecting fraud. By analyzing entire datasets, AI can identify unusual patterns. In contrast, manual examinations are limited by time, workforce, and analytical capacity.
She illustrated this with the example of a company that operates from Monday to Friday and has relatively consistent transaction patterns on working days. If a transaction occurs over the weekend, it may warrant further investigation. “With AI, this detection process becomes easier because it can quickly identify unusual patterns like these,” Putri explained.
She added that advances in technology have also transformed the auditing process. Whereas audits were previously often conducted using sampling methods, AI enables larger volumes of data to be fed into systems for analysis. As a result, auditors can gain a broader understanding of trends and anomalies across the entire dataset.
Not a Replacement for Humans
Although AI can detect anomalies quickly, Putri emphasized that human involvement remains essential in following up on its findings. Humans are responsible for understanding the context, conducting further analysis, and determining the appropriate course of action. This demonstrates that AI and humans complement rather than replace one another.
For example, when a whistleblowing report or allegation of fraud emerges within an organization, a whistleblower remains important in bringing potential misconduct to light and supporting further investigation into irregularities identified by AI.
Putri stressed that AI is a supporting tool, not a replacement for human responsibility. Therefore, its use in the workplace must be guided by sound judgment and transparency.
In fraud detection, she continued, AI and humans should not be viewed as substitutes but as complementary elements. AI can process large volumes of data, identify anomalies, and improve detection efficiency. Meanwhile, humans remain essential in applying professional judgment, upholding ethical standards, encouraging the reporting of misconduct, and making decisions.
Therefore, an effective fraud prevention and detection system requires collaboration between AI technology and human expertise, supported by whistleblowing mechanisms and sound organizational governance.
“By combining the capabilities of AI with whistleblowing, ethics, and good governance, organizations can establish a stronger foundation for building an environment of integrity and addressing the evolving challenges of fraud in the future,” Putri concluded.
Watch the full episode of FEB UGM Podcast, titled Uncovering the Future of Fraud Detection: AI or Humans?, at: http://ugm.id/MengungkapMasaDepanFraudDetection
Reporting: Najwa Anggi Namira
Editor: Kurnia Ekaptiningrum
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