The Comptroller and Auditor General of India (CAG) has announced the adoption of artificial intelligence (AI) and machine learning (ML) in audits to detect fraud in state beneficiary schemes. Speaking at the State Finance Secretaries Conference 2025, CAG K Sanjay Murthy highlighted that AI/ML-based forensic audits can scan massive datasets, flag anomalies, and ensure financial savings by preventing misuse of funds.
The CAG is also prioritizing remote audits and digitisation, enabling 100% coverage of GST and income tax databases without physical presence. State governments are adopting digital finance platforms like IFMS, e-procurement systems, and digitised land records to boost transparency and accountability.
Government initiatives such as SNA SPARSH and capital investment assistance further strengthen IT infrastructure for better fund management. These advancements in AI, ML, and digital tools mark a major step towards data-driven governance, curbing corruption, and ensuring more effective delivery of welfare schemes.
