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    AI Impacting Three Stages of Insolvency

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    DDd
    The document discusses how artificial intelligence (AI) can help streamline and expedite insolvency proceedings in India. It notes that AI is already being used globally in insolvency laws to aid in early detection of potential insolvency, resolution plan formulation by analyzing past cases, and improving the overall insolvency process. The document argues that implementing AI could help address issues like delays and complexity that plague India's insolvency resolution system by making the process more efficient and transparent for all stakeholders.

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    AI Impacting Three Stages of Insolvency

    Uploaded by

    DDd
    62 views1 page
    The document discusses how artificial intelligence (AI) can help streamline and expedite insolvency proceedings in India. It notes that AI is already being used globally in insolvency laws to aid in early detection of potential insolvency, resolution plan formulation by analyzing past cases, and improving the overall insolvency process. The document argues that implementing AI could help address issues like delays and complexity that plague India's insolvency resolution system by making the process more efficient and transparent for all stakeholders.

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    Artifical intelligence and its role in ibc

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    AI and IBC

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    The document discusses how artificial intelligence (AI) can help streamline and expedite insolvency proceedings in India. It notes that AI is already being used globally in insolvency laws to aid in early detection of potential insolvency, resolution plan formulation by analyzing past cases, and improving the overall insolvency process. The document argues that implementing AI could help address issues like delays and complexity that plague India's insolvency resolution system by making the process more efficient and transparent for all stakeholders.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    62 views1 page

    AI Impacting Three Stages of Insolvency

    Uploaded by

    DDd
    The document discusses how artificial intelligence (AI) can help streamline and expedite insolvency proceedings in India. It notes that AI is already being used globally in insolvency laws to aid in early detection of potential insolvency, resolution plan formulation by analyzing past cases, and improving the overall insolvency process. The document argues that implementing AI could help address issues like delays and complexity that plague India's insolvency resolution system by making the process more efficient and transparent for all stakeholders.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    The pandemic’s rapid spread caused governments globally to realize they were dealing with a developing

    worldwide economic crisis. Hence, aftermath global pandemic the countries have considerably modified the
    policies, guidelines, and practices all around the world for swift recovery and functioning of economies.
    Apropos, many key professions and legal activities have become more digitalized. Particulary, the legal world
    started shifting towards “machine learning” and “artificial intelligence” (AI) for prompt redressal of business
    and financial matters to aid the economy. Globally, one of the most notable areas of law where the shift is traced
    is insolvency proceedings for its relation to accounts and finance. 

    In India, there have been constant efforts made by the government and the Insolvency Bankruptcy Board of
    India (IBBI) to speed up the insolvency resolution and liquidation process. Recently, IBBI issued discussion
    papers on “reduction in delays in Corporate Insolvency Resolution Process” (CIRP) and “streamlining the
    liquidation process”. However, the huge number of filed cases, the complexity of the process, and the labyrinth
    of documents keep on dragging down such attempts. Moreover, earlier this march, while addressing a national
    level colloquium, the National Company Law Tribunal (NCLT) president suggested the peremptory aspect of
    early insolvency resolution to be the development of AI. AI can aid in the desired time-bound process of
    insolvency laws in the country and this era of “big data” can make the whole process a lot easier and more lucid
    for the stakeholders. 

    The article aims to transverse into the future and explores the unexplored potential and capability of AI in
    insolvency laws in all three pre-insolvency, CIRP, and liquidation stages. It looks into the global adoption of AI
    to strengthen the argument of streamlining the insolvency resolution process through AI.

    AI impacting three stages of Insolvency

    AI is the theory and development of computer systems able to perform tasks normally requiring human
    intelligence, such as visual perception, speech recognition, decision-making, and translation between languages.
    Machine learning, deep learning, artificial neural networks, rule-based expert systems, and natural language
    processing are examples of artificial intelligence technologies employed in worldwide insolvency and
    bankruptcy processes. These technologies have the potential to augur the possibility of a company becoming
    insolvent and help in the admission of cases. Many times it can also be beneficial in providing a competent
    resolution plan by analyzing earlier similar cases and the outcome of resolution plans. 

    i. Pre-Insolvency

    The process of Insolvency in India is a time-consuming and exhausting one as it requires the formation of
    elaborative plans and documents. To accelerate the process, one viable solution can be predicting insolvency at
    an early stage or pre-insolvency stage. Predicting a company’s insolvency can provide investors with foresight,
    enabling them to minimize the risk. Before the technological advancements, experts used to predict insolvency
    taking into account the financial health of a company. However, the advent of AI has been a breakthrough in
    assessing insolvency as it possesses the potential to revolutionize the process in terms of time and resource
    efficiency.

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