Deploying AI for Audit Checks and Monitoring of Government Agencies' Contract Management and Procurement

Mr Xie Yao Quan asked the Prime Minister and Minister for Finance (a) whether the Auditor-General's Office will consider deploying artificial intelligence (AI) to strengthen and expand its checks on Ministries and Government agencies in the area of contract management and procurement; (b) whether the AI capability can be deployed across Ministries and Government agencies to strengthen their contract management and procurement; and (c) if so, what are the timelines for implementation.

Ms Indranee Rajah (for the Prime Minister): My response will also cover the question on the same topic filed by Mr Lee Hong Chuang, which is scheduled for a subsequent Sitting.

I would first like to thank the Auditor-General's Office (AGO's) for its report, which provides valuable insights into areas for improvement. The AGO adopts a risk-based approach in its audits and makes use of digital tools where applicable, including data analytics, to analyse procurement trends and detect potential irregularities. AGO has also developed a tool to identify potentially fictitious documents and employs artificial intelligence (AI) to identify higher-risk transactions and improve audit efficiency.

In addition, AGO intends to share its use of digital tools, risk indicators and techniques for detecting red flags with public agencies, and continue to trial emerging AI tools to further enhance its audit capabilities.

The Government has been actively exploring such capabilities to augment the work in finance, procurement and contract management. Government agencies have started to use them in suitable areas and will continue to explore using AI to strengthen financial governance, procurement and contract management. Tools already shared across public agencies include AI-powered anomaly detection and document analysis for fraud detection.