Intelligent Procurement Fraud Is Coming.

Intelligent Procurement Fraud Is Coming.

November 30, 2021
Data, Procurement

Are you ready for artificial intelligence fraud?

We’ve already written about the almost magical capabilities of artificial intelligence here.

We’re using it to augment millions of documents. We’re using it every day, creating cleansed, enhanced data that would take humans hundreds of years to process manually.

The latest natural language processing algorithms are completely changing our relationship with text. We can analyse and recreate text better than ever before.

We can use AI to spot fraud, but that AI can also be used to conduct fraud too.

At its most basic, AI fraud will be a sort of supercharged plagiarism. Imagine a consultancy given the task of creating a report, and submitting something that was written in 10 seconds by an algorithm that has been trained on the endless flow of positional papers, white papers and other corporate content. Or perhaps you’re buying a support service that charges for human operators, which in fact turn out to be algorithms that got used when service demand was high.

In a more sophisticated use, AI could be used to obfuscate and hide the activities of a cartel. For a cartel to function it needs to submit losing bids alongside the pre-chosen winning bid. In the past those bids had to be written by hand and cartels were sometimes discovered by lazy copy/paste activities when submitting losing bids. Now a losing bid can be created by an algorithm that has been trained on old bids. Old bids can simply be rephrased and rehashed by the algorithm, creating fresh, unique content for bidders who want a cheap way to produce bids but don’t want to win.

What about colluding with buyers? That becomes easier when AI can ingest thousands of tender specifications and then write a spec that is constructed to be won by a specific supplier. This might seem fanciful, but given the incentives and the difficulty of detecting this type of fraud, it would be foolish to assume that it won’t happen.

Artificial text is coming and buyers need to be ready for the changes it will bring.

Talk to us about your data needs, our data services and our procurement research capabilities.

January 25, 2023

Mixing Politics & Procurement.

The need for administrations to act at pace is often at odds with the processes and procedures needed for good procurement. If...
January 24, 2023

Improve Your Exporting With Government Data

Government procurement data can be a valuable resource for export agencies looking to expand their business and identify new opportunities in foreign...
January 18, 2023

Waiting For A Tsunami Of Text

In a world where text can be generated by an algorithm for negligible costs, we have to rethink how we value the...
January 17, 2023

Cleaning Up On Cleaning Contracts

Canberra, in the Australian Capital Territory, is home to the nations houses of parliament and a large swathe of public sector. Transparency...
January 11, 2023

New Procurement Bill Progresses Through Parliament

The proposed new Procurement Bill passed its second reading without division in the House of Commons yesterday, with the Government proposing the...
January 10, 2023

How Government Procurement Data Can Help Export Agencies

Government procurement data, the information on what goods and services government entities purchase in different markets, is an extremely valuable, and often...
January 5, 2023

Government On Covid 19 Contracts

The government has published a document, providing further information about the procurement of critical testing equipment and services during the early months...
January 3, 2023

Global Analysis: Less Is Less

Analysing 7.5 million tender documents published by governments around the world has revealed a worrying trend of publishers providing less data for...
December 1, 2022

Using Data To Build A Supply Chain

All data has a provenance. It comes from somewhere. Someone created it. Maybe it came from a sensor, or it was created...
December 1, 2022

Get Your Data Sorted.

We collect tens of thousands of documents every day. We visit more than 700 sources to collect this data. That's what our...
December 1, 2022

The Importance of Government Procurement Data for Export Agencies

There are a number of ways that government procurement data can help export agencies, including: Identifying New Markets - By understanding what...
December 1, 2022

Lord’s Have Their Say On Procurement Bill

The proposed changes to the Procurement Bill are on their third reading in the House of Lords. Last week the House of...
December 14, 2022

Buyers who stole Christmas (again)

It’s time to shed a festive tear and feel some sympathy for all the bidding teams who’ve got bids to respond to...
December 1, 2022

How Government Procurement Data Can Help Export Agencies.

If you’re in the business of exporting, you know that the global market can be a tough one to crack. In order...
December 1, 2022

EU’s Ruling On Beneficial Ownership

Last week, the Court of Justice of the European Union (CJEU) ruled that public access to registries showing personal details about companies'...

Newsletter

Compelling research, insights and data directly into your inbox.

Recent media stories

Search