Investigating the Potential of Digital Technologies, AI, and Blockchain in Transforming Insolvency Procedures

Abstract

The incorporation of digital technology such as digital tools, artificial intelligence (AI), and blockchain is set to transform the field of corporate insolvency processes in the current era of digitalization. The study aims to investigate how these innovations can improve productivity, openness, and decision-making in insolvency systems. The study seeks to examine the effectiveness of digital tools in achieving efficiency gains, investigate how AI improves decision-making in insolvency proceedings, analyze the role of blockchain in enhancing transparency, and identify the obstacles and remedies related to the implementation of these technologies. The research methodology adopted for the study is descriptive and has a qualitative research design. For the purpose of conducting the study, the data is collected through secondary sources like; Govt. Reports, Newspapers, Articles and journals. The results of the study proposed that digital tools such as AI-powered analytics can streamline routine tasks in insolvency proceedings. The incorporation of digital tools, AI, and blockchain technology in insolvency procedures may encounter challenges such as apprehensions about data protection, regulatory challenges, and the necessity to enhance the skills of insolvency practitioners to proficiently utilize these advances. The study concluded that digital transformation simplifies repetitive operations, optimizes interaction, and promotes teamwork, ultimately decreasing administrative workload and accelerating the handling of cases.