Page 61 - CMA Journal (Sep-Oct 2025)

Articles Section

Challenges in Automating Legislative not possible without human intelligence, such as
Oversight Processes learning, reasoning, problem solving, perception, and
decision making. Powering PACIS with AI will make the
Digital transformation, in most of the cases, guarantees legislative oversight process exemplary and highly
increase efficiency in operations and reduction of many
efficient and effective in the following ways:
costs, however, following challenges should be
considered before, during and after digitization: • Summarization of Lengthy Data: AI can help in
summarizing the lengthy audit observations and
• Reliable Internet Connection: A web-based
applications, like PACIS, always need a reliable detailed reports submitted by the departments
(auditees) in support of their replies, by highlighting
internet connection for its flawless operations.
the critical and important issues for the focused
• Startup and Maintenance Cost: Transformation discussion of the PAC.
from manual to digital system incurs considerable
startup and reasonable maintenance costs for • Risk Assessment and Prediction: The audit reports
software development and hardware procurement. contain hundreds of audit observations in respect of
multiple departments. An AI-supported PACIS will
• Service Level Agreement (SLA) with developers:
enable the users to identify the high-risk and critical
Signing SLA with developers is essential to ensure
timely support, system reliability and ongoing areas and invest the limited time and energy
fruitfully.
maintenance.
• Training and Resistance Management: A • Thematic Review: AI clusters audit observations by
web-based system, like PACIS, involves multiple users recurring themes (e.g., non-deduction of taxes),
with different functions, therefore, role based allowing for unified, targeted directives across
extensive training sessions and users support are departments and more strategic decision-making.
essential for successful implementation of the system.
• Advanced Data Filtration: Facilitates the PAC and
• Cybersecurity and Data Privacy: In the digital age other users to classify the audit observations on the
the dependency on web-based applications is basis of amounts and types of audit observations. For
increasing, so does the risk of potential security example, asking PACIS to filter all audit observations
vulnerabilities. These may result in business of Rs. 10 million and above on account of
disruption, reputation damage and financial loss. unauthorized expenditure.
Therefore, regular monitoring and technical
intervention would be necessary. • Intelligent Recommendation: On the basis of
accessibility to a wide range of databases and the
• System Downtime and Technical Issues: Like all IT
ability to augment human capabilities, AI can
systems, PACIS may occasionally experience
support the PAC in taking effective decisions.
technical glitches, downtime, or software bugs.
• Smart Notification System: The existing PACIS
Implementation Should Not Be Derailed generates automatic notifications, but at fixed
by Challenges intervals or followed by directed action in the
system. AI, using human intelligence capabilities, will
Automation of systems always face challenges – as
mentioned above. However, proper planning, designing generate and send notifications to the users—most
and implementing of digital transformation and importantly to the departments (auditees)—
engagement of all end-users in the process can address regarding the deadline for compliance with PAC
most of the challenges. The long-term benefits of the decisions.
digital transformation – including efficiency, • Voice-Supported Search: Enabling PACIS with
effectiveness, accessibility, responsiveness, optimizing voice-supported search will optimize the data
workflow, institutional coordination and productivity retrieval process from huge databases. For example,
always overweigh the involved costs. Therefore, in the a user can ask a question like: “Show me all unsettled
very case, the challenges should not be viewed as
audit observations from Audit Year 2023 in the
constraints, rather strategically managed to modernize
Education Department.”
the traditional legislative oversight process.
• Need-Based Dashboard: Higher-ups always
Proposed Features appreciate information at a glance and visualization.
PACIS supported by AI will generate real-time and
1) Powering PACIS through Artificial
need-based extracts and visuals for the PAC and
Intelligence (AI)
other users. The existing system has a dashboard, but
Artificial Intelligence (AI) is playing a pivotal role in its features are limited.
automating the complex processes that were previously

ICMA’s Chartered Management Accountant, Sep-Oct 2025 59