The Comptroller and Auditor General (CAG) is developing a large language model (LLM) platform and deploying artificial intelligence (AI) and machine learning (ML) tools to strengthen public sector auditing, improve risk detection, and enable faster identification of procurement concentration and cartel-risk indicators, according to a PTI report.
Modernisation of Audit Systems
Comptroller and Auditor General K Sanjay Murthy stated on Wednesday that the country's apex auditor is modernising audit systems to enhance the quality, speed, and analytical depth of public auditing. Speaking at the 17th Annual Day of the Competition Commission of India (CCI) in New Delhi, Murthy highlighted that the modernised systems will identify repeated bid rotations, suspicious clustering of vendors, abnormal pricing similarities, concentration of awards, and patterns of limited competition across tenders more quickly and efficiently.
Murthy noted that the CAG's procurement audits across major sectors have evolved from reporting isolated irregularities to identifying larger systemic patterns. The auditor is now using AI and ML tools to analyse entire datasets rather than relying solely on sample-based reviews.
Data Processing and Future Vision
According to Murthy, the CAG processes nearly 20,000 to 25,000 inspection reports annually, containing lakhs of audit observations related to government expenditure, infrastructure projects, taxation, and procurement. Going forward, the vision is to enable near real-time identification of procurement concentration and cartel-risk indicators. Murthy suggested that future audit analysis may eventually generate dynamic competition-risk heatmaps across sectors, geographies, and contractor ecosystems.
Development of Sovereign AI Platform
Murthy also announced that the CAG LLM is being developed as a sovereign artificial intelligence platform for public sector auditing and institutional knowledge management. These LLM platforms are expected to significantly improve the quality, speed, and analytical depth of public auditing by assisting officers in identifying risk areas, designing audit plans, detecting systemic vulnerabilities, and enabling faster sharing of institutional knowledge and best practices across various stakeholders.
Enhanced Technological Capabilities
With enhanced technological capabilities, the CAG plans to strengthen analysis of GST systems, FASTag and logistics datasets, mining dispatch systems, power exchanges, transport networks, and public procurement repositories. This comprehensive approach aims to modernise public auditing and ensure more effective oversight of government spending and competition practices.
