Project uses AI to extract local government financial data

A joint project between the Government Finance Officers Association (GFOA) and Rutgers University is using artificial intelligence (AI) to extract financial data more easily from local government financial reports.

The initiative aims to enhance the speed and accuracy with which financial data can be gathered. It uses advanced natural language processing algorithms and machine learning techniques to extract financial data such as revenues, expenditures, budget variances, and debt levels.

Enhanced data availability will enable finance officers to make more informed decisions and ensure transparency in fiscal management, the organisations say.

Chris Morrill, Executive Director of GFOA, said: “By harnessing the power of AI, we aim to transform the way local governments access and utilise financial data. This joint effort will streamline processes, enhance accuracy, and ultimately empower finance professionals to provide better information to elected officials and the public.”

Pilot

GFOA and Rutgers will identify around ten county governments in a single state to work with the team to test whether data can be extracted and to trial integrating information from the county into a large language model.

The work will focus on extracting a small number of the most critical pieces of information, including quantified and qualitative information. The project will also explore the integration of non-financial and financial information.

Miklos A. Vasarhelyi, from Rutgers University, commented: “Our AI research capabilities, combined with the expertise of GFOA, present an exciting opportunity to leverage cutting-edge technology for the betterment of government financial management. We look forward to developing innovative solutions that address the challenges faced by local governments and contribute to their financial success.”

The first results from the project are expected in early autumn this year.