Revolutionizing agricultural funding oversight with AI
AAI Labs successfully implemented a cutting-edge artificial intelligence solution for Lithuania's National Payment Agency (Nacionalinė mokėjimo agentūra, NMA). The new system transforms how the agency analyzes and evaluates applications for agricultural funding, improving efficiency and fraud detection capabilities.
Addressing critical challenges in public fund administration
NMA, which processes over 8,000 unique funding applications and business plans annually, faced challenges with limited human resources, time constraints, and increasingly sophisticated fraud attempts. With fraudulent activities evolving from individual actors to organized groups, the agency required a technological approach to protect public funds while ensuring timely support for legitimate farmers.
Comprehensive AI solution architecture
The AAI Labs implementation utilizes a multi-layered AI system specifically designed for document analysis and risk assessment in public funding contexts. The solution is built upon three core technological pillars:
Custom-trained models analyze the textual content of applications to identify linguistic patterns, stylistic similarities, and unusual content structures that may indicate fraud. The algorithm can detect when multiple applications likely originate from the same source.
The system constructs relationship networks across applications by analyzing entities, locations, contact information, equipment specifications, and financial projections. This allows it to visualize connections that would be impossible for human reviewers to detect across thousands of separate applications.
Using unsupervised machine learning, the system establishes baseline patterns for legitimate applications across different farming sectors and then flags statistical outliers for human review.
The system analyzes application data to identify suspicious correlations and similarities across thousands of documents that might indicate coordinated fraud attempts. This includes detecting duplicate sections of text, suspicious patterns in budget allocations, or unusual similarities in business plans. Applications are evaluated on a sophisticated risk matrix that provides transparent justification for any flags raised, allowing human reviewers to understand why an application requires additional scrutiny quickly.
AAI Labs worked with NMA to analyze examples of past applications, including known fraudulent cases, to train the AI models on Lithuania-specific agricultural funding programmes. The system was designed to operate within the agency’s existing IT infrastructure, requiring no external data transmission and maintaining complete data sovereignty.
"The technical implementation was designed with complete data security and explainability in mind," said Aistis Raudys, CEO at AAI Labs. "Government agencies require not just effective AI, but systems that operate transparently and securely. Our solution gives NMA full control and visibility into how risk assessments are generated."
Future expansion and European relevance
More than 200 project evaluators at NMA now have access to the AI-generated risk assessments, enabling them to focus their expertise on applications flagged as potentially problematic. Looking ahead, AAI Labs is exploring opportunities to expand the use of the AI tools to other types of the funding administration process, potentially creating a comprehensive intelligent oversight system that could serve as a model for similar agencies throughout the European Union. The platform has been designed for scalability and can be adapted to other public funding contexts beyond agriculture, including business development grants, research funding, and infrastructure projects.
"Agricultural funding agencies across Europe face similar challenges with fraud detection," said Aistis Raudys. "Our solution for NMA demonstrates how targeted AI implementation can transform government operations, enhancing oversight while reducing the administrative burden on public servants."
About AAI Labs
AAI Labs is a leader in developing practical artificial intelligence solutions for government and public sector organizations, as well as private businesses. The company specializes in creating secure, transparent, and effective AI systems that enhance decision-making and operational efficiency while maintaining the highest standards of privacy and data protection. With extensive experience in GovTech implementations across Europe, AAI Labs bridges the gap between cutting-edge AI capabilities and the practical needs of public institutions.