AI to help in insolvency cases? Here's what we know
India's Insolvency and Bankruptcy Board (IBBI) is looking to require Resolution Professionals to use AI in handling insolvency cases.
The goal? Cut down on delays, spot fraud faster, and manage overwhelming data more easily.
If it goes through, this move could make the whole process smoother, more transparent, and a lot more accurate.
AI could streamline processes
AI tools could handle tedious tasks like reviewing documents, flagging financial red flags, checking compliance boxes, and even predicting how much creditors might recover—all using real case data.
They'd also help keep everyone in the loop during complicated proceedings.
IBBI is looking to create dedicated modules
Right now, AI in this space is mostly limited to legal research or summarizing judgments.
But IBBI wants to go bigger: think dedicated modules for fraud detection and predicting recovery outcomes and modeling insolvency scenarios.
India could join the global trend
Other countries—like the UK—are already bringing AI into their insolvency systems.
If India follows suit, we could see faster case resolutions and fewer mistakes—plus a system that is more efficient, transparent, and aligned with global best practices.