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Use of Artificial Intelligence (AI) for Fraud Detection to Triple by 2021

Texas-based ACFE is the world’s largest anti-fraud organization and premier provider of anti-fraud training and education

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"A tectonic shift is happening in AI. Nearly 85 per cent of enterprises globally will use AI in some form or the other by 2020.

As cyber criminals find new ways to exploit technology, a new survey has said that the use of Artificial Intelligence (AI) and Machine Learning (ML) for fraud detection globally would triple by 2021.

While only 13 per cent of organizations use AI and ML to detect and deter fraud, another 25 per cent plan to adopt such technologies in the next year or two — a nearly 200 per cent increase, revealed a global survey by the US-based Association of Certified Fraud Examiners (ACFE) with global analytics leader SAS.

“As criminals find new ways to exploit technology to commit schemes and target victims, anti-fraud professionals must likewise adopt more advanced technologies to stop them,” Bruce Dorris, President and CEO of the ACFE, said in a statement late Monday.

About one in four organizations (26 per cent) use biometrics as part of their anti-fraud programmes and another 16 per cent foresee deploying biometrics by 2021.

“More than half of organizations (55 per cent) plan to increase their anti-fraud tech budgets over the next two years,” the findings showed.

By 2021, nearly three-quarters of organizations (72 per cent) are projected to use automated monitoring, exception reporting and anomaly detection.

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“We’re beginning to see the first instances of artificial intelligence operating as a mediator between humans, but it’s a question of: ‘Do people want that?” Pixabay

Similarly, about half of organizations anticipate employing predictive analytics/modeling (52 per cent and up from 30 per cent as of today) and data visualization (47 per cent from current 35 per cent).

The survey examined data provided by more than 1,000 ACFE members about their employer organizations’ use of technology to fight fraud.

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The survey respondents hailed from 24 industries globally. The size of their employer organizations ranged from less than 100 employees to more than 10,000.

“The dramatic rise of AI, ML and predictive modeling reveals that, beyond the hype, advanced analytics is helping investigators keep steps ahead of increasingly sophisticated fraudsters,” said James Ruotolo, Senior Director of Products and Marketing for Fraud and Security Intelligence at SAS.

Texas-based ACFE is the world’s largest anti-fraud organization and premier provider of anti-fraud training and education. (IANS)

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Researchers Develop AI Algorithm That can Solve Rubik’s Cube in Less Than a Second

According to the researchers, the ultimate goal of projects such as this one is to build the next generation of AI systems

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Researchers have developed an AI algorithm that can solve a Rubiks Cube in a fraction of a second, faster than most humans. The work is a step toward making AI systems that can think, reason, plan and make decisions.

The study, published in the journal Nature Machine Intelligence, shows DeepCubeA — a deep reinforcement learning algorithm programmed by University of California computer scientists and mathematicians — can solve the Rubik’s Cube in a fraction of a second, without any specific domain knowledge or in-game coaching from humans.

This is no simple task considering that the cube has completion paths numbering in the billions but only one goal state – each of six sides displaying a solid colour – which apparently can not be found through random moves.

“Artificial Intelligence can defeat the world’s best human chess and Go players, but some of the more difficult puzzles, such as the Rubik’s Cube, had not been solved by computers, so we thought they were open for AI approaches,” said study author Pierre Baldi, Professor at the University of California.

“The solution to the Rubik’s Cube involves more symbolic, mathematical and abstract thinking, so a deep learning machine that can crack such a puzzle is getting closer to becoming a system that can think, reason, plan and make decisions,” Baldi said.

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“Artificial intelligence is now one of the fastest-growing areas in all of science and one of the most talked-about topics in society.” VOA

For the study, the researchers demonstrated that DeepCubeA solved 100 percent of all test configurations, finding the shortest path to the goal state about 60 per cent of the time.

The algorithm also works on other combinatorial games such as the sliding tile puzzle, Lights Out and Sokoban.

The researchers were interested in understanding how and why the Artificial Intelligence (AI) made its moves and how long it took to perfect its method.

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“It learned on its own, our AI takes about 20 moves, most of the time solving it in the minimum number of steps,” Baldi said.

“Right there, you can see the strategy is different, so my best guess is that the AI’s form of reasoning is completely different from a human’s,” he added.

According to the researchers, the ultimate goal of projects such as this one is to build the next generation of AI systems. (IANS)