New Delhi, October 3rd (KNN) The Indian government is considering making it mandatory for solution experts (RPS) to use artificial intelligence (AI) agents in the process of stagnation to improve efficiency, transparency and accuracy.
According to a report by the Bankruptcy and Bankruptcy Board of India (IBBI), AI adoption will help address challenges such as delayed case resolution, fraud and the vast amount of financial data that experts need to analyze.
The board said AI tools can streamline compliance, automate documentation, detect anomalies and enhance stakeholder communication.
Currently, Insolvency experts mainly use AI applications such as ChatGPT to summarise legal judgments and support legal research. However, the IBBI report highlighted that many AI use cases are underutilized.
The report has identified several potential AI agents tailored to the bankruptcy process. For example, fraud detection agents can help identify preferred, undervalued, fraud, and horrifying (PUFE) transactions, along with hidden assets or other financial misconduct.
Bankruptcy forecasting agents, on the other hand, can predict recovery outcomes by analyzing historical data, financial records, and case-specific variables.
These tools can also model scenarios such as asset liquidation and restructuring and evaluate potential outcomes.
Experts believe that AI can dramatically accelerate the bankruptcy and bankruptcy law (IBC) process. Ricky Chopra, RCIC Chairman and Chief Counsel, said:
Globally, several countries have already integrated AI into their bankruptcy practices. The UK's National AI Strategy, launched in 2021, supports the use of AI in law enforcement agencies, including bankruptcy. Finland's Costi Platform is also leveraging AI to increase the efficiency of bankruptcy cases.
With India's growing caseload under IBC, the move towards AI integration is seen as a step towards modernizing and accelerating the resolution process.
(KNN station)
