AI-generated receipts pose growing compliance risk for businesses worldwide

Technology

AI-generated receipts pose growing compliance risk for businesses worldwide

Artificial intelligence is becoming deeply embedded in everyday working life, but alongside its productivity benefits, it is creating new compliance risks that organisations must urgently address. As AI tools become more accessible, experts warn that the rise of AI-generated receipts and invoices could expose businesses to significant financial and regulatory challenges.

According to the seventh annual SAP Concur Global Business Travel Survey, 88 per cent of business travellers globally are comfortable using AI-powered automation for tasks such as booking travel and managing expenses. However, the same technologies can also be misused. Free generative AI tools now allow users to create highly realistic but fraudulent receipts and invoices within seconds.

This has heightened concerns among finance and travel leaders. The survey found that 67 per cent of chief financial officers, 78 per cent of travel managers and 55 per cent of business travellers believe employees are likely to use AI to falsify expenses within their organisations. One in 10 respondents said they were aware that this was already happening.

While most non-compliant expense reports stem from human error rather than deliberate fraud, SAP Concur data shows that between 15 and 20 per cent of expense reports contain out-of-policy or incorrect spending. Common issues include duplicate claims, non-itemised receipts and inaccurate calculations. AI-generated receipts add a new layer of complexity, as they are often difficult for both humans and legacy travel and expense systems to detect.

Traditional fraud detection methods tend to rely on manual reviews conducted after expenses are submitted, rather than real-time verification. Limited integration with third-party data sources and inconsistent documentation of audit processes further weaken detection efforts. In addition, many employees and approvers lack training on identifying AI-engineered fraud, increasing the likelihood that fabricated expenses go unnoticed.

To counter the growing risk, organisations are being urged to adopt proactive and comprehensive strategies. One key recommendation is embedding fraud prevention into expense policies. This includes introducing pre-spend approval processes for significant purchases, conducting pre-spend audits and clearly outlining consequences for fraudulent claims.

Education is also critical. Approvers should be trained to spot warning signs of AI-generated receipts, such as spelling inconsistencies, incorrect tax calculations or images that appear overly polished or artificial. While some AI tools embed digital watermarks or metadata, experts caution that these can often be removed, making a combination of checks essential.

Post-spending due diligence is another important safeguard. Integrating expense systems with corporate cards, e-receipts and travel booking platforms can help automatically cross-check claims. Data analytics tools can further identify unusual patterns, duplicate submissions or high-risk spending behaviours that warrant closer review.

Finally, organisations are being encouraged to use AI itself as part of the solution. Modern travel and expense platforms equipped with AI and machine learning can analyse large volumes of data simultaneously, improving the detection of errors and potential fraud. More than half of CFOs surveyed believe AI-driven automation will identify more issues than manual reviews alone.

As AI-driven fraud tactics continue to evolve, businesses face increasing pressure to modernise their compliance frameworks. By strengthening policies, investing in education and leveraging advanced technologies, organisations can reduce exposure to fraudulent claims and stay ahead of emerging risks.