New Delhi, Aug. 5 -- The rural development ministry will use artificial intelligence (AI) to rate states on how quickly and effectively they respond to internal audit observations, in a move aimed at strengthening financial oversight and improving the implementation of flagship rural schemes.

The ministry plans to use an AI-enabled internal audit portal to boost accountability, accelerate corrective action, and improve financial management, amid concerns about rural demand and the effective use of public funds, according to two people aware of the development.

The rankings are expected to foster healthy competition among states while ensuring audit findings translate into measurable improvements in programme delivery. This move also shi...