AI in government audit and public expenditure: From pilots to productivity at scale

This report was released to mark the India AI Impact Summit 2026.

AI in government audit and expenditure control: A shift from innovation to impact

Across jurisdictions, Supreme Audit Institutions (SAIs) and finance ministries are moving from AI pilots to scaled, risk-aware deployment. The U.S. GAO’s (Government Accountability Office) AI accountability framework has become a practical touchstone for auditors and managers (Governance, Data, Performance, Monitoring)-while the UK NAO, the European Court of Auditors (ECA), the Netherlands Court of Audit, and others are exposing the gaps that block value: skills shortages, legacy IT, inconsistent inventories, opaque algorithms, and weak outcome tracking.^1,2,3,4

Convergence in public-sector AI standards: From G7 toolkits to algorithm registers

The policy community is converging on toolkits that translate principles into operations-e.g., the G7 toolkit for AI in the public sector (OECD/UNESCO) and INTOSAI’s multi-year standard-setting plan-while the Netherlands’ algorithm register shows how transparency can be made routine, not rhetorical.^5,6,7,8,9

India’s AI-enabled audit transformation: Scaling capability, speed, and coverage

India is now adding scale and speed: the CAG’s AI Strategy Framework (2025), the upcoming CAG-Connect portal, and a bespoke CAG-LLM to mine decades of audit knowledge-concrete steps that can reduce audit cycle times, sharpen risk-based coverage, and strengthen expenditure control.^10,11,12

AI-enabled accountability in public finance

AI offers transformative possibilities to make public finance management more efficient, transparent, and citizen-focused. It can monitor receipts and expenditures in real time, surface irregularities, and route alerts to responsible authorities-reducing waste and improving accountability. Traditional methods are no longer adequate as data footprints expand and real-time accountability becomes the norm.

The true measure of government programmes is the value they deliver to citizens and the impact they create in the wider economy. AI helps close the gap between expenditure and outcomes by improving planning, oversight, and public transparency.

^[1] National Audit Office. (2024). Use of artificial intelligence in government.
^[2] U.S. Government Accountability Office. (2021). Artificial intelligence: An accountability framework for federal agencies and other entities (GAO-21-519SP).
^[3] U.S. Government Accountability Office. (2021). Artificial intelligence: An accountability framework for federal agencies and other entities (GAO-21-519SP).
^[4] European Court of Auditors. (2024). EU Artificial intelligence ambition – Special report 08/2024.
^[5] INTOSAI FIPP. (2023). Information on the development and process of the new strategic plan 2023–2025.
^[6] Government of the Netherlands. (n.d.). Algorithm register.
^[7] International Organization of Supreme Audit Institutions. (2023). INTOSAI strategic plan 2023–2028.
^[8] OECD & UNESCO. (2024). G7 toolkit for artificial intelligence in the public sector.
^[9] OECD. (2024). G7 toolkit for artificial intelligence in the public sector.
^[10] Comptroller and Auditor General of India. (2025). Artificial Intelligence Strategy Framework.
^[11] The Economic Times. (2025, September 17). CAG to launch portal in November to make entire audit process tech-driven.
^[12] The Hindu. (2025, September 18). CAG developing large language model to enhance efficiency, consistency in audit analysis.