BUSINESS PROBLEM STATEMENT: Finance team members spend 15+ hours weekly manually reviewing expense reports for policy violations and fraud, causing delayed reimbursements and employee frustration. AI-powered automatic expense validation could reduce review time by 70% while increasing detection accuracy.
DATA ASSESSMENT SUMMARY:
Available: 3 years of labeled expense reports (120,000 records)
Quality: 92% completeness score, requires cleansing of duplicate entries
Access: Compliance approval needed for PII-related fields - Gaps: Limited examples of certain fraud categories
MODEL CAPABILITY REQUIREMENTS:
Primary: Classification of expenses into compliant/non-compliant categories
Secondary: Anomaly detection for unusual spending patterns
Performance: Minimum 95% precision, 90% recall for compliance violations
Transparency: Ability to explain reasoning for flagged expenses
USER EXPERIENCE REQUIREMENTS:
High confidence violations (>90%): Auto-reject with explanation
Medium confidence (70-90%): Flag for human review with highlighted concerns
Low confidence (<70%): Process normally but log for pattern analysis
All decisions: Provide explanation factors for reviewers
ETHICAL REQUIREMENTS:
Model must maintain consistent accuracy across all employee seniority levels
System must not create disparities in processing time based on department or location
Privacy: Personal details must be obscured from expense reviewers
Transparency: All automated decisions must include supporting evidence
TECHNICAL IMPLEMENTATION REQUIREMENTS:
Deployment: Model to be contained and deployed in existing cloud environment
Latency: Maximum 2-second response time for expense classification
Integration: API endpoints for ERP system and expense management platform
Monitoring: Drift detection system with weekly retraining evaluation
Fallbacks: Rule-based system activation if model confidence drops below 60%