The next phase: AI and human collaboration powering internal audit transformation

Look to AI technology enablement as a catalyst to empower CAEs and their teams to deliver stronger strategic oversight and value-added input for the business.

• In today's dynamic landscape, relying solely on traditional audit methodologies and technologies is insufficient. Internal auditors must evolve to embrace AI and the demand for organizational agility.
• The next phase in internal audit's growth and evolution positions AI enablement as an imperative, one that is complemented by an internal audit team possessing the right talent and skills and empowered to focus more on delivering strategic insights and partnering effectively with the business.
• Nearly one in four IT audit functions already is using AI and machine learning tools.
• While it may not be necessary to build a fully AI-enabled internal audit function immediately, what is important now is to get started.

Our AI-enabled, human-empowered view of internal auditing

Transformation isn't optional - it's already underway.

• Internal audit's commitment to AI enablement must align to a talent management approach that pairs the use of these technologies with the right people and skills to ensure these tools deliver maximum relevant insights.
• This combination of AI technology and talent will enable internal audit functions to enhance their current methodologies and supporting technologies while unleashing new and innovative ways to protect and enhance organizational value.
• Internal auditors are less at risk of being supplanted by AI than they are at being replaced by internal auditors who are more comfortable and adept at using AI.

Internal audit technology integration: AI enablement is imperative

There are ample opportunities for internal audit to leverage AI throughout the end-to-end audit lifecycle.

• Embracing AI enables internal audit functions to enhance processes, deliver insights and improve decision-making. Whether in the early or later stages of implementation, prioritizing AI enablement is key to staying relevant and operating at the accelerated pace that is now expected.
• AI can streamline tasks ranging from transcription and scheduling to report generation and contract reviews.
• In today's fast-changing world of AI, the latest developments center around agentic AI; its value-creation potential for internal audit functions is immense. Specialized AI agents can handle complex tasks, allowing auditors to focus on strategic analysis and decision-making.
• As AI technologies evolve, internal audit teams must integrate AI into their workflows to drive innovation and value creation.

Getting started on internal audit's AI journey

Vision-led. Governance-backed. Outcome-driven.

• Successful AI deployment hinges on a shared vision and purpose, aligning AI opportunities with business value. Internal audit functions must identify and prioritize AI use cases that drive meaningful outcomes.
• Best practices include formulating the vision and team, exploring opportunities for employing AI technologies and conducting pilot tests. Emphasizing governance and ROI measurement ensures AI integration enhances decision-making and service innovation.

Building an AI-ready audit workforce

Technology and talent are now intertwined.

• It's vital for CAEs to be aware of and keep pace with how their organizations are transforming. As AI becomes integral to corporate workforces, CAEs must align talent strategies with technological advancements. Attracting and retaining talent skilled in AI and advanced technologies are critical.
• Internal audit functions must develop strategies that encompass AI-driven analytics and capabilities. This ensures internal auditors are equipped to leverage AI tools and excel in executing collaborative, value-adding activities.
• Integrating AI into talent sourcing portfolios and training programs will enhance audit capabilities.