AI Inspiration: How Two Leading Internal Audit Functions Use AI
The launch of OpenAI’s ChatGPT in November 2022 rewrote the book on the modern business model. Virtually overnight, the availability of fast and powerful tools to harness vast amounts of data and create new content became reality. Since then, novel and user-friendly generative artificial intelligence (GenAI) tools have created an irresistible lure to improve efficiency, productivity, and competitiveness.
According to the Internal Audit Foundation’s Internal Audit Vision 2035: Creating Our Future Together report, which surveyed more than 7,000 internal audit professionals and stakeholders, 74% said they consider the adoption and implementation of AI to be of utmost importance to the profession in the future — yet 77% of respondents also report low-level or no implementation of AI within their functions.
To gain inspiration and insight into how leading internal audit teams are using AI, the Foundation and AuditBoard conducted interviews with four audit leaders across industries who have integrated AI into their work. Read on for an overview of two key use cases, then download the full guide, Demystifying AI: Internal Audit Use Cases for Applying New Technology, for a more in-depth exploration.
Use Case #1: Internal audit leader is a zealous promoter of AI
Despite known and unknown risks associated with AI use, an internal audit leader at a major auto manufacturer is eager to promote the use of AI within the profession.
[callout quote: “Originally, I was drafting my email in my words and then saying, “Improve my wording,’” he said. “But now I say, ‘I need an email to this team. Here’s some of the important points I want to include. Draft me an email.’]
“I know there’s things out there on the internet where it’s given bad examples of things or it’s not worked, but by and large, it works, and it really can help you step up your game.”
It helps that his company has in place AI governance, controls, and training to make getting started easier.
“It’s pretty comprehensive, more than what I would have expected jumping into this,” he said. “So, I was pleased to see that.”
The audit leader described himself as an early technology adopter, and he has eagerly taken advantage of training and tools offered by the company to improve his communications in emails and in draft reports. “It’s really helped me step up my game.”
He is not alone. The AI tool, Microsoft Copilot, is used to write press releases, draft emails, even analyze financial statements, he said.
Much of the AI use in internal audit so far has been to improve efficiency by having the tool do more mundane tasks, such as providing summaries of meetings or drafting communications. As others describe, this audit leader also uses AI to enhance various aspects of risk assessment. For example, he’ll describe a risk scenario and provide relevant standards, policies, or expectations. Then he’ll describe actual conditions and direct the AI tool to identify potential risks and root causes and recommend countermeasures.
“It’s been wicked smart,” he said. “I’ve been very impressed.”
Download the report to read the full case study including a snapshot of governance, implementation, use within function, audit projects and engagements, and advice.
Use Case #2: Effective AI use demands a secure environment
The promise of improved efficiency and productivity makes leveraging AI technology essential for just about any organization, and one major multinational manufacturing company has become a leading proponent of using AI to “bring manufacturing into the future.”
However, even for this AI champion, the risks associated with using publicly available GenAI tools created a conflict with maintaining a secure environment to safeguard its product lines and client relationships.
The answer was finding the right platform to safely explore and initiate AI use.
“Before rolling out anything, have a strong AI policy that everybody is aware of and is compliant with,” the company’s chief audit executive said. “Second, having a partnership in a safe and secure AI platform such as the one that’s been built inside the company is great because your information stays within the company. There are not as many limitations as to what information you can use, and you can tailor the model to grow with you and grow with the company.”
The introduction of the platform and an accompanying AI use policy were eagerly awaited. Until then, the manufacturer had put in place programs that monitored and blocked inappropriate sharing of company information with GenAI tools, the CAE said.
The company is now using Microsoft Copilot and AuditBoard to safely implement AI, and its advantages within internal audit were quickly recognized. “We’ve leveraged a lot of AuditBoard’s AI functionality so far,” she said. “They launched an AI tool for issues and control descriptions. And, we’ve leveraged AuditBoard’s generative AI a bunch for our year 25 planning.”
Beyond the audit plan, AI also has been beneficial in developing consistent descriptions of controls and issues, she said.
“The team has been amazed about how powerful AuditBoard’s AI tool is,” she said. “It’s become more desirable to have consistent wording, but managers all over the regions phrased their issues differently. By using AuditBoard AI, we’ve managed to keep it more consistent.”
In addition, the team has used AI in the AuditBoard platform to help brainstorm risk identification and risk assessment, and to expand risk control matrices.
Indeed, the AuditBoard platform is designed to generate control, risk, and issue language based on user prompts and audit, risk, and compliance training. What’s more, its functionality supports mapping between controls and framework requirements, uncovering duplication, summarizing audit findings, and more.
“The team got hands on as soon as they could with the technology because they were already used to using ChatGPT outside of work,” she said. “When AuditBoard rolled out the AI feature and we were able to get hands on the pilot project, everybody was wanting to be part of the focus group.”
Ready to Jump-Start Your AI Journey?
Get inspired with a deeper dive into the two use cases previewed here as well as two more from audit teams in financial services and healthcare, find out actionable strategies and advice for getting started with AI. Download your free copy of Demystifying AI: Internal Audit Use Cases for Applying New Technology today!
