Insurance Fraud Fighters Report Big AI Ambitions – But Not So Fast

Nearly one-in-five anti-fraud professionals (18%) counts artificial intelligence (AI) and machine learning (ML) technology among their fraud-fighting tools, while another 32% anticipate implementing these technologies in the next two years, a new report shows.

The 2024 Anti-Fraud Technology Benchmarking Report is the third installment of a global research study initiated by the Association of Certified Fraud Examiners (ACFE) and SAS. The latest edition reflects insights from nearly 1,200 ACFE members surveyed in late 2023.

The survey data reveals key trends in the evolution of fraud fighting since 2019:

• Interest in AI and ML technology is higher than ever, with nearly one-in-five anti-fraud professionals using these tools, and 32% anticipating implementing these technologies in the next two years. That’s a peak since the study’s inception. At this rate, use of AI/ML in anti-fraud programs will almost triple by the end of next year.
• AI and ML adoption still consistently lags expectations. Adoption of AI and ML for fraud detection and prevention has grown only 5% since 2019. That figure falls far short of the anticipated adoption rates revealed in the 2019 and 2022 studies (25% and 26%, respectively).
• While the use of many data analysis techniques has plateaued, the application of biometrics and robotics in anti-fraud programs has risen steadily. Use of physical biometrics climbed 14% since 2019, and is now cited by 40% of respondents. One-in-five survey respondents (20%) reported using robotics, including robotic process automation, up from 9% in 2019. The use of these technologies is notably highest in banking and financial services, with half (51%) using physical biometrics and one-third (33%) using robotics.