Artificial intelligence (AI) has quickly become a go-to tool for everyday tasks, from summarising documents to answering complex questions. If you’re a property professional using AI tools like ChatGPT, you’re certainly not alone. AI has experienced rapid uptake, with uses ranging from content generation, assisting with research, and automating simple processes. So, if AI can do all that, why couldn’t you send an image or document to your AI tool of choice, have it extract the information and use that in your business processes to save you time?
The short answer is no, and here’s why…
While AI tools are great at processing text and providing general insights, they are not built for the highly detailed and regulated task of identity verification (VOI). Relying on AI tools and Large Language Models (LLMs) like ChatGPT to verify ID documents could expose you to fraud, errors, and compliance risks. In this blog, we explore why LLMs fall short and why you need a specialist solution like Scantek for secure and accurate ID verification.
1. AI Tools like ChatGPT can’t reliably read ID documents
At its core, identity verification relies on extracting and cross-checking precise details from official documents like passports and driver’s licences. This includes:
- Exact spelling of names
- Correct document numbers
- Accurate dates of birth and expiry dates
- Security features embedded in the document
However, AI-powered language models like ChatGPT were never designed for this kind of precision. Unlike dedicated optical character recognition (OCR) and back-to-source verification systems, LLMs like ChatGPT guess rather than read. This is because AI models like ChatGPT are built to predict the most likely text based on patterns, rather than accurately transcribe what’s actually written. In other words? They have been optimised for the overall meaning of a text document rather than the intricate details that actually matter when it comes to VOI.
Real risk:
If an AI tool misreads a name or a document number, you could unknowingly accept a fraudulent or incorrect ID, potentially exposing you to fraud and non-compliance issues.
2. AI makes up information when it’s unsure
One of the most significant risks with AI is “hallucination,” which occurs when AI invents details that aren’t actually there. Unlike dedicated ID verification systems such as Scantek, which flag uncertainties or return an error when they can’t read a document, AI will often fill in the gaps based on what it thinks should be there. Pulse recently shared a great blog that looks at the technical reasons behind LLM hallucination and AI’s inability to perform Optical Character Recognition (OCR) accurately.
Ultimately, LLM tools have been optimised to solve a person’s query. To do that, they will make guesses that appear correct but could be entirely wrong. Unfortunately, there is no way to know, outside of manually checking everything, if a tool has hallucinated something.
What could this look like?
If an AI tool struggles to read a blurry ID document, it may “guess” missing letters in a name or merge numbers incorrectly, presenting false information as fact. This is a massive problem for ID verification. A small mistake, such as misinterpreting “rn” as “m” or swapping an “O” for a “0,” could result in a person’s identity being wholly misrepresented.
Real risk:
Inaccurate data means potential fraudsters could slip through, and you could be held responsible for using a verification method that isn’t compliant or accurate.
3. AI doesn’t perform back-to-source checks
One of the most critical steps in identity verification is checking documents against official government databases to confirm their legitimacy. This process is called back-to-source verification, and it’s how Scantek ensures that the ID presented is real, valid, and belongs to the person using it.
AI models like ChatGPT cannot access government databases or the tools required to check an ID’s authenticity. They simply process the text and images inputted without cross-referencing them with trusted sources.
Real risk:
AI won’t detect fake IDs or fraudulently altered documents. Without back-to-source verification, you have no way of knowing if the document has been tampered with.
4. AI presents serious privacy and compliance risks
Data security is a considerable concern when verifying identities. When you send an ID document to an AI tool like ChatGPT, where does that data go? Many AI tools operate on cloud-based servers outside of Australia, which could mean:
- Sensitive client information is stored overseas
- You lose control over how that data is used
- You breach privacy laws like the Australian Privacy Act
In contrast, Scantek is ISO 27001 certified and ensures that all client data remains securely stored within Australia, meeting the highest industry standards for data protection.
Real risk:
Using AI tools that process data offshore may violate Australian privacy laws, exposing your business to fines and penalties.
5. AI is not connected to your workflow
A major reason why businesses choose Scantek for identity verification is because it’s designed for real-world business processes. When a client submits their ID for verification, Scantek:
- Instantly extracts and verifies their details
- Conducts back-to-source checks
- Performs biometric facial recognition
- Flags potential fraud risks
- Provides a secure, audit-ready report
With AI tools like ChatGPT, you’d have to manually:
- Extract the ID data
- Double-check for accuracy
- Cross-check the document yourself
- Store the verification results securely
This defeats the purpose of automation, adding extra work instead of removing it.
What’s the alternative for ID verification?
Identity verification requires precision, security, and compliance, something that off-the-shelf AI tools like ChatGPT simply aren’t built for. That’s where Scantek comes in. Our digital verification of identity solution:
- Is purpose-built for VOI and designed for accuracy and security
- Leverages Government-backed back-to-source checks, verifying ID documents at the source
- Includes advanced fraud detection to catch fake IDs instantly
- Keeps your client’s data safe and secure thanks to our ISO 27001 certification and secure Australian data storage
- Offers seamless workflow integration
Doesn’t Scantek use AI, though?
Yes! Scantek has created several AI models specifically for different types of identity documents rather than the popular chat models previously mentioned. Our AI models run securely in the Scantek cloud and have been specifically built and tested on different identity documents from around the world, so we are able to quickly and accurately recognise and read driver’s licences, passports, identity cards, and other documents crucial to your workflow.
AI can’t replace proper identity verification, so don’t risk it
While AI and LLM tools like ChatGPT, Claude and Gemini are powerful in many areas, they cannot be relied upon for identity verification. The risks of inaccuracy, fraud, and compliance breaches are simply too high. Scantek’s purpose-built solution is the right choice if you want to minimise risk, streamline compliance, and protect your business
If you want to use technology to save time, enhance your customers’ experience, and ensure compliance with your regulatory obligations, book a demo today and experience the Scantek difference.