Chapter One — 1.1 Background to the Study

Organizations that depend on school fee payment systems are under increasing pressure to modernize, and Generative AI has emerged as one of the more promising avenues for doing so, given its demonstrated impact in related domains.

Despite this potential, many existing school fee payment systems were not originally designed with generative AI in mind, resulting in persistent gaps in fraud detection accuracy that limit their overall effectiveness. This study examines how Generative AI can be applied to help close that gap.

1.2 Statement of the Problem

Existing approaches to fraud detection accuracy within school fee payment systems remain largely reactive and fragmented, with little systematic use of generative AI despite its demonstrated value elsewhere. This study addresses the resulting gap by designing and evaluating a solution built specifically around generative AI.

1.3 Objectives of the Study

1. To design and implement a generative AI-based approach to improving fraud detection accuracy in school fee payment systems.
2. To evaluate the effectiveness of Generative AI in enhancing fraud detection accuracy within school fee payment systems.
3. To identify the key requirements and constraints relevant to deploying generative AI in this context.
4. To assess user and stakeholder perception of the resulting system.

1.4 Research Questions

1. How can generative AI be applied to improve fraud detection accuracy in school fee payment systems?
2. How effective is Generative AI at enhancing fraud detection accuracy within school fee payment systems?
3. What requirements and constraints are relevant to deploying generative AI in this context?
4. How do users and stakeholders perceive the resulting system?

1.5 Significance of the Study

Beyond its immediate technical contribution, this study offers value to organizations evaluating whether to invest in generative AI for their own school fee payment systems, and contributes to the broader literature on applied software technology / IT by documenting a concrete implementation and evaluation case.

1.6 Scope of the Study

As a study of this kind, its scope is confined to designing and evaluating a generative AI-based solution for school fee payment systems, focused specifically on fraud detection accuracy; broader deployment considerations fall outside this scope.