AI use led the US Treasury to recover $4bn that would otherwise be lost to fraud

Artificial Intelligence (AI) has reportedly helped the US Treasury in fraud prevention. The government arm said that its enhanced detection program used AI to save and recover over $4 billion in FY24.

By using AI tools and risk-based screening, the Treasury is not the only official arm to benefit. Almost a year after the Biden Executive Order, several departments now use AI.

AI integrates into US administration for fraud prevention

The US Department of the Treasury said that its improved fraud detection program has saved and recovered over $4 billion in FY24. The figure stood at $652.7 million last fiscal. The Treasury’s Office of Payment Integrity has reportedly used risk-based screening and AI tools to identify high-risk transactions and detect Treasury check fraud.

The Treasury reports that bringing in risk screening prevented the loss of $500 million. Additionally, $2.5 billion was saved by prioritizing high-risk transactions and $1 billion through faster fraud detection using AI for Treasury checks. Lastly, $180 million was saved by improving how payments are processed.

As per the press release, these efforts are part of a broader strategy to improve payment integrity across federal programs and protect taxpayer money. Wally Adeyemo, Deputy Secretary of the Treasury, suggested that the focus is now on ensuring that government payments go to the right person, in the correct amount, and on time.

“We will continue to partner with others in the federal government to equip them with the necessary tools, data, and expertise they need to stop improper payments and fraud,” the official adds.

Biden Executive Order circled on AI risk management

The use of AI comes almost a year after the Biden administration underlined the risks emerging from AI in the Executive Order. It later released key AI actions to tackle those risks. During the time, the administration also stated that it would bring more AI experts into federal jobs through AI Talent Surge. In six months of the executive order, the government reportedly got in over 150 AI professionals. The official website calls it a “bold action” to responsibly use AI in national challenges.

In December 2023, the US Government Accountability Office (GAO) said that agencies have included AI to improve government operations but awaited key risk guidance. The report also highlighted, “The President’s fiscal year 2023 budget request included $1.8 billion for nondefense research and development investment in AI.”

AI has an impact in all sectors and the government wants to take it in its stride. It has often cited ‘responsible’ AI use in official orders. The use of AI by federal agencies could play an important role in ensuring fraud prevention and recovery.