With artificial intelligence (AI) increasing at 10,000x a year, audit professionals need to nudge businesses towards risks of not keeping pace with the rate of change, said Jio Financial Services’ Chairman, KV Kamath, on Tuesday.
Speaking at the Institute of Internal Auditor India’s International Conference, he said that crashing costs of technology are a risk to companies as it questions its sustenance a few years from now. “Without embracing technology, I don’t think companies will exist.” KV Kamath said.
With AI evolving at a high speed, Kamath said that the scope of risks to be looked at for internal audit also changes—requiring adaptability. “I do not see a reduction in the number of professionals required. I think certainly there will be a change in the skill set required, which is not going to be difficult as you can pick it up on your own,” he said.
Even majority of the internal audit executives across industries say emerging risks from AI and technology are most critical to be monitored within their organisations, according to a survey by Institute of Internal Auditors (IIA) and Protiviti India.
Out of the 225 chief audit executives (CAEs) surveyed, nearly three-fourth see AI and cybersecurity threats as major risks for corporate India. Over half see data privacy and third party risks key for organisations to monitor.
As many as 69 per cent see AI and data analytics even help improve internal audit of businesses, but it remains one of the major gaps in the function, according to the survey.
A majority lack adequate skills to manage emerging risks, with only 16 per cent audit executives being ‘highly prepared’ to address them through internal audits. Internal audit is a function to review an organisation’s operations and processes for governance and operational risks.