Responsible AI and Internal Audit: What You Need to Know
As businesses rapidly adopt artificial intelligence (AI), it is becoming increasingly essential for internal audit functions to keep pace with this transformation. AI is reshaping operations across industries, from predictive analytics and GenAI-powered customer support to automated underwriting and risk modeling. While AI offers significant value, it also introduces complexities and risks that organizations must navigate effectively.
The Importance of Governance in AI
The swift integration of AI into business processes brings with it potential pitfalls, such as bias, privacy violations, and compliance breaches. Without robust governance structures, organizations risk facing model failures and regulatory issues. This scenario presents a unique opportunity for internal audit teams to lead the charge on Responsible AI.
Internal Audit: Positioned to Lead on AI Governance
Internal audit functions are evolving from mere compliance watchdogs to strategic enablers of trust and transformation. With their enterprise-wide visibility and independent assurance capabilities, internal audit teams are ideally positioned to:
- Evaluate AI governance structures
- Advise on responsible AI deployment
- Assess control design and effectiveness
By embedding themselves early in the AI lifecycle, audit teams can help shape innovation that is not only bold but also responsible.
Why This Matters Now, Especially in Ireland
Irish organizations are navigating a landscape of rapid transformation and tightening regulation. According to a recent survey, 29% of Irish CEOs believe their organizations might not be viable in ten years without reinvention. Despite the fact that 98% of Irish businesses have begun their AI journey, only 6% have successfully deployed AI at scale, and 79% have yet to implement comprehensive AI governance frameworks.
With the EU AI Act now in effect, Irish organizations face new obligations regarding AI literacy, risk categorization, and human oversight for high-risk systems. Internal audit can play a pivotal role in helping organizations meet these requirements while unlocking value from AI.
AI is Reshaping Internal Audit, Fast
Just as cybersecurity became a board-level priority a decade ago, AI risk is now at the forefront of audit committee discussions across Ireland. The transformation brought about by AI affects core business processes, from decision-making to customer engagement, often outpacing existing governance frameworks.
Organizations lacking a clear strategy or inventory of AI use cases are particularly vulnerable. If left unchecked, AI systems can:
- Make decisions that breach privacy, fairness, or ethical standards
- Obscure explainability, complicating audit and regulatory compliance
- Introduce security and intellectual property risks through third-party models or data leakage
Boards, regulators, and customers are increasingly demanding accountability, and internal audit is well-positioned to provide answers—provided they are equipped with the right mandate, capabilities, and frameworks.
A Moment of Opportunity
This is a crucial moment for internal audit to step up as a strategic enabler of Responsible AI. By helping organizations innovate confidently while ensuring that trust and transparency remain central, internal audit can significantly contribute to the successful integration of AI in business operations.
