Artificial intelligence (AI) is no longer a futuristic concept—it is embedded in business operations across industries. From financial modeling to human resources analytics, AI has the potential to transform how companies work, and with that transformation comes new expectations for internal auditors. Preparing an internal audit team for the age of AI requires a proactive and structured approach.

The first step is education. Internal auditors need a foundational understanding of what AI is and how it functions within business processes. While not every auditor must become a data scientist, a baseline knowledge of machine learning, natural language processing, and automation ensures they can assess risks and evaluate controls intelligently. Training programs, workshops, and industry certifications are useful in closing knowledge gaps.

Second, audit leaders must enhance their risk assessment frameworks to account for AI-specific risks. AI introduces issues of bias, data privacy, algorithm transparency, and model governance. Traditional audit checklists often fail to capture these nuances. For example, auditors must be prepared to test whether machine learning models were trained on biased datasets or whether algorithms are producing consistent, explainable outputs.

Third, auditors must evaluate governance structures. Who owns AI oversight within the organization? Are there clear policies on AI model approval, monitoring, and retirement? Internal audit should recommend that management establish formal governance frameworks, similar to those used for financial controls.

Fourth, technology must be incorporated into audit procedures themselves. Internal audit functions can use AI-driven analytics to improve sample testing, anomaly detection, and fraud risk analysis. This “audit of AI using AI” approach demonstrates both credibility and efficiency.

Finally, preparation involves cultural change. Audit teams should position themselves as partners to management, providing insights on responsible AI adoption rather than acting solely as compliance watchdogs. This requires open communication and a forward-looking mindset.

In conclusion, internal audit teams that prepare for AI now will be better positioned to add value to their organizations. By building knowledge, updating frameworks, strengthening governance, using advanced tools, and adopting a collaborative role, auditors can provide assurance that AI is implemented responsibly and effectively.