Thailand develops AI to detect financial fraud

Thailand is rapidly developing artificial intelligence (AI) for fraud detection, according to SAS Institute, a global leader in the data and AI field.

The country's financial sector is expected to see collaboration in risk management and fraud management to tackle new financial crime in an end-to-end prevention process, said the company as reported by the Bangkok Post.

Thailand has strong regulatory frameworks and collaboration among banks. This aligns with successful models in Australia, Europe and Hong Kong in combating financial crime, stated Ian Holmes, SAS director and global lead for enterprise fraud solutions.

Holmes added that Thailand is embracing technology to combat financial crime, including real-time payment protection to safeguard against fraud in digital transactions.

He said that the wider adoption of AI is transforming the fraud detection and anti-money laundering processes. The use of Thailand's digital ID will also speed up identity verification, requiring AI to ensure secure and fast processing.

David Asermely, SAS's global lead of model risk management and AI governance, said banks and businesses are preparing for broader AI usage, specifically in the context of using LLMs for different tasks.

One example is the use of two models: a primary LLM to answer questions, and a separate "judge" model to grade the answers, he said.

Banks are using AI to validate and test their own AI systems. After the judge model gives a grade, human experts review the results to ensure proper safeguards and accuracy are in place. This combination of AI and human expertise helps build better guardrails for the AI systems, he added.