Industries are adopting blockchain tech, AI to rein in corruption

KUALA LUMPUR, April 29 – Blockchain technology, internet of things (IoT), and artificial intelligence (AI) are innovations that are improving current business processes, while creating new business models just as they disrupt industries, says a managing director with an international association for accountants.

Indeed several industries have started to adopt blockchain technology (an accounting technology) to promote transparency and auditability just as they rein in corruption and fraud, said Irene Teng, Managing Director of Global Markets​ at The Association of International Certified Professional Accountants (The Association).

Blockchain refers to a digital record of transactions stored on a decentralised network of computers. The computers, spread across different areas, record and stores data to display a chronological series of events on a transparent and immutable ledger system.

According to Investopedia, blockchain makes corruption more difficult because it is a distributed-ledger technology that can certify records and transactions – or “blocks” – without the use of a central database and in a way that cannot be erased, altered or tampered with.

In an interview with Weekly-Echo, Irene Teng said with growing digitalisation, these technological advances in the accounting profession have led to better business processes and systems.

For the accounting profession, AI has transformed the industry by eliminating tedious tasks and freeing up time for financial professionals to prioritize higher impact responsibilities and create value for the organisations.

“More importantly, finance professionals use AI to predict patterns, detect anomalies in financial data and reduce the time it takes to identify non-compliance issues. This means AI makes it possible to detect fraud in real-time instead of having to wait weeks or months until chargebacks start coming in.

“AI is also used to detect money laundering and predict risks in tax evasion. In fact, several industries ranging from banking and finance and supply chain to healthcare, energy and real estate, are beginning to adopt blockchain technology (an accounting technology) for the benefits of transparency and auditability, thus preventing corruption or fraud.”