Smart Ethical Lines

Smart Ethical Lines

What Is Artificial Intelligence?

Similar to how human intelligence is often confused with the ability to recall, the distinction between data mining and artificial intelligence is frequently misunderstood. They are not the same.

Intelligence is the capacity to deduce patterns and make inferences about the future. An example of deduction would be, by observing the shopping behavior in a store, deducing that teenagers place more importance on clothing brands than older individuals. Based on this deduction, one can infer whether the introduction of certain products will find a significant market of buyers or not.

Data mining forms the foundation for intelligence, whether human or artificial, but it is not intelligence itself. We will explore this relationship further.

The Relationship Between Intelligence and Data

There is, however, a relationship between intelligence and the quantity and quality of data. It is said that the Eskimo language has over 40 words for what we in Spanish call "snow." The reason is obvious—the number of types of snow they can differentiate compared to us due to their experience and data.

So, collecting ample reliable and relevant data and systematizing it properly is crucial for intelligence, a fact affirmed by experts in neuroscience and/or artificial intelligence.

What Will Future Smart Ethical Lines Entail?

Currently, ethical lines are mechanisms for gathering information, their greatest merit being that they bring more than 40% of alleged fraud cases to the attention of organizations. In other words, without ethical lines, this information would be lost, and frauds would continue for much longer, causing greater losses.

However, this information must be analyzed by one or more humans, with all the limitations that entails:

• Details or relationships between data may be overlooked.
• Unfounded connections may be established.
• Unfounded connections may be established.

In contrast, a smart ethical line can advance beyond mere data collection to establish deductive and inductive patterns as previously described:

• Identifying common patterns among reports and other information available within the organization to assign credibility and connections
• Making inferences regarding the future evolution of:
  • New reports that will be generated in case of inaction.
  • Costs generated by reported alleged frauds.

Digital Ethical Lines vs. Smart Ethical Lines

Having said all of the above, we conclude that, similar to how the collection and systematization of information form the basis of human intelligence, the ability of current digital ethical lines to capture and organize information is the essential requirement for advancing to the next and inevitable stage: smart ethical lines.

Enhance your ethical line with descriptive statistics that will facilitate decision-making regarding fraud risks related to reports received through your reporting channel or finding connections between your reports. At SHOGUN, we provide you with tools that will empower your digital ethical line.

Author: Guillermo Casal
International consultant and trainer in fraud prevention and investigation and anti-money laundering. He is a Certified Public Accountant, holds a Master's degree in Economics and Administration, and has six international certifications, including the CFE (Certified Fraud Examiner), CIA (Certified Internal Auditor), and CISA (Certified Information Systems Auditor).