Within corporations, artificial intelligence (AI) is emerging as a key tool for verifying process compliance and detecting errors, violations and breaches. AI solutions can transform defensive lines and internal control systems. While traditional internal audit typically performs retrospective, sample‑based checks, AI enables comprehensive, real‑time visibility across processes.
KPMG research: executive expectations and audit adoption
KPMG’s surveys of business leaders illustrate the pace of change: 72 percent of respondents say their company is working on developments that will rewrite industry rules (disruptive technologies), and 61 percent believe AI should have a role in the workplace. Among internal audit professionals, willingness to use AI rose from 47 percent in 2016 to 62 percent in 2017, yet only 29 percent feel technically prepared to implement it.
Practical effects of digitalization
Traditional internal audit models usually operate on a risk‑assessment basis and follow a predetermined annual schedule to sample and review departments or cross‑functional processes. Digitalization, by contrast, allows companies to continuously monitor all internal activities in real time. When fully digital processes are combined with AI, systems can flag events that contradict internal rules or appear anomalous, and in some cases prevent actions—such as blocking execution of a payment.
Human role and the profession’s transformation
The move to automated systems raises questions about the fate of employees whose tasks are partially replaced. The view in the profession is not that auditors will be made obsolete, but that they will be able to perform many more, and higher‑quality, tasks—ultimately delivering better service at comparable cost. Rather than manually checking contracts and invoices, future auditors will operate systems and produce more accurate, near‑real‑time assessments of organizational performance for management.
As long as human decision points remain in processes, internal audit is indispensable. Even after full automation, oversight remains necessary: machines are neither lazy nor corrupt, but errors may arise in their design, implementation or coordination, making supervision and ensuring continuous operation critical.
Cybersecurity, continuity and new skills
AI’s spread elevates the importance of cybersecurity and operational continuity, driving the creation of new roles. This should not hinder technological progress: employees generally want to be freed from monotonous, manual reporting tasks so they can focus on strategic value creation, efficiency improvements and designing more dynamic operating models.
Professionals must therefore focus less on competing with robots and more on leveraging machines—concentrating on areas where humans retain comparative advantage, such as strategy, critical thinking, teamwork and empathy.
Expanded focus on non‑financial risks
Internal auditors are increasingly scrutinizing traditionally non‑financial areas—corporate culture, adherence to ethical norms, human and talent risks, health, and sustainability. Studies show these aspects now often exceed the material values recorded in company books in terms of their importance to long‑term corporate success.
Conclusion
AI will not eliminate internal audit but will reshape it: the function will gain greater relevance while taking on different tasks, including real‑time system oversight, technical integration and strategic advisory roles. The profession must adapt to continue delivering value to owners and other stakeholders alongside automated systems.
