Md. Nurul Haque

The economic problems that Bangladesh is facing, such as financial instability and corruption, have spurred conversations about artificial intelligence's (AI) potential to help with these problems. Artificial Intelligence is becoming increasingly recognized as a potential tool to improve governance and spur economic growth as technology advances. For example, AI may increase economic output and productivity, according to the International Monetary Fund's (IMF) most recent "World Economic Outlook" report. The influence of AI remains largely unknown, particularly in its capacity to address systemic issues like financial inefficiency and corruption.

Bangladesh, a nation whose economy is expanding, has severe problems with financial mismanagement and corruption. These problems impede economic growth and erode public confidence in institutions. In this regard, artificial intelligence (AI) is beginning to emerge as a multipurpose technology that might penetrate several industries and provide creative answers to these enduring issues.

General-purpose technologies (GPTs) are inventions that, like the steam engine or electricity of their day, impact different sectors of the economy. These technologies have the potential to boost productivity and stimulate economic growth significantly, but it frequently takes them years or even decades to realize their full potential. AI, as a contemporary GPT, has the potential to fundamentally alter economic processes, especially in areas like financial management and governance.

The potential of AI in Bangladesh goes beyond just boosting the economy. It might be crucial in combating the country's widespread corruption. AI has the potential to contribute to the development of a more effective and transparent system of governance through process automation, increased transparency, and real-time data analysis. AI-driven solutions may be used, for example, to track financial transactions, keep an eye on government expenditure, and look for anomalies that would point to fraud.

Corruption is a pervasive problem in Bangladesh that impacts everything from tax collection to public procurement. The existing system is susceptible to manipulation and abuse because it mainly relies on manual processes and human judgment. AI can completely transform this system by introducing transparent, data-driven, automated processes.

In this sense, the field of public procurement is one of the most potential uses of AI. Public procurement in Bangladesh is frequently plagued by anomalies, which drive up prices and result in subpar services. AI can assist in streamlining the procurement process by identifying the most dependable and affordable suppliers and evaluating enormous volumes of data. Additionally, AI algorithms can identify trends that point to bid-rigging or collusion, stopping corrupt activities in their tracks before they start.

Financial crime identification is another area where artificial intelligence has the potential to influence significantly. Bangladesh has experienced problems with tax evasion and money laundering, which deplete the country's resources. AI-powered systems can analyze large datasets to find questionable transactions and flag them for additional inquiry. This discourages people who might consider committing financial crimes and raises the possibility that financial crimes will be discovered.

AI has the potential to improve Bangladesh's financial stability and fight corruption. The ineffectiveness of conventional banking methods, a lack of transparency, and inadequate regulatory control have all been issues for the nation's financial sector. AI can help with these problems by expanding access to financial services, strengthening regulatory compliance, and better risk management.

AI-driven risk management solutions can lower the probability of faulty loans and defaults by assisting Bangladesh's financial institutions to evaluate borrowers' creditworthiness more accurately. These systems can provide a more accurate image of a borrower's potential to repay a loan by analyzing various data points, such as spending patterns, social media activity, and financial history. This guarantees that credit is given to people most likely to spend it wisely while shielding banks from losses.

AI can also help with regulatory compliance. Bangladesh's financial industry is frequently criticized for inadequate supervision, which can result in instability and emergencies. Real-time financial activity monitoring by AI-powered compliance systems guarantees that institutions follow legal standards. This lowers the possibility of breaking regulations and contributes to keeping the financial system stable.

Furthermore, AI has a significant potential to improve Bangladesh's financial inclusion. Despite recent advances, a sizable segment of the populace is still underbanked or unbanked. AI can close this gap by offering cutting-edge solutions like microfinance services and mobile banking systems. Because of these technologies, underprivileged groups can now have access to credit, savings accounts, and insurance products that were previously unattainable.

Although artificial intelligence (AI) has enormous potential to address Bangladesh's governance and economic issues, it is crucial to use this technology carefully. The IMF paper emphasizes the ambiguity around AI's effects and states that this result is not guaranteed, although it may bring about a prosperous period. The development and application of these technologies will determine if AI is successfully implemented in Bangladesh.

To effectively combat corruption and improve financial stability, artificial intelligence (AI) needs to be incorporated into a larger plan involving public awareness campaigns, capacity building, and legal reforms. Strong data protection regulations are also necessary to guarantee that AI technologies don't violate people's privacy or worsen already-existing disparities.

Artificial intelligence presents a viable approach to tackle some of Bangladesh's most critical issues, such as financial instability and corruption. AI is a general-purpose technology that can completely transform economic and governmental management, resulting in more accountable, transparent, and efficient systems. However, how AI is used and how much more considerable institutional changes back it will determine how big of an influence it has. Even though artificial intelligence (AI) cannot address every issue Bangladesh has, it can be a valuable tool in the nation's continuous attempts to create an affluent and just society.

The writer is a Asst. Prof. Dept. of English and Modern Languages International University of Business Agriculture and Technology (IUBAT) Dhaka, Bangladesh.