In previous articles, I explored how artificial intelligence is already operating as an “unseen employee” across business functions and the risks that emerge when these systems are given authority without sufficient oversight.
The reality is clear: AI is no longer a future consideration. It’s approving transactions, influencing decisions, generating content, and interacting directly with critical enterprise systems. The question facing finance and internal audit is no longer whether AI is present, but how organizations can govern it responsibly.
Fortunately, finance leaders and internal auditors do not need to invent a new playbook.
The Institute of Internal Auditors’ Artificial Intelligence Auditing Framework provides a practical structure for evaluating AI governance, management controls and independent assurance activities. More importantly, it offers a roadmap for helping organizations transform AI from a hidden risk into a controlled and trusted business capability.
A Practical Roadmap for Finance and Internal Audit
Many organizations are still early in their AI governance journey. Rather than attempting to solve every challenge at once, finance and internal audit can take a measured, practical approach.
Create visibility through an AI inventory.
The first step is understanding where AI is operating. Organizations should develop and maintain an inventory of AI tools, models, automations and service accounts across business functions, including shadow or citizen-developed AI solutions. After all, it is impossible to govern what you cannot see.
Clarify governance and ownership.
Every AI system should have a clearly identified owner, defined accountability, and an established governance structure. Finance and internal audit can help organizations assess whether leadership has assigned appropriate responsibility for AI-related decisions and risks.
Build AI knowledge within the audit function.
Auditors do not need to become data scientists, but they do need a working understanding of how AI operates, where risks emerge and what controls matter most. Developing internal capabilities through upskilling the team is essential to providing meaningful assurance.
Start with a pilot review.
Rather than launching a large-scale AI internal audit program immediately, many organizations benefit from conducting a focused review of a lower-risk AI application. This builds experience, helps refine methodologies, and demonstrates value early.
5. Integrate AI into risk assessments and audit planning.
AI should not be treated as a separate technology issue. It is increasingly woven into financial, operational, compliance and strategic processes. As a result, AI-related risks should be incorporated into enterprise risk assessments and annual audit plans.
6. Modernize reporting and oversight.
Boards and executives need clear visibility into AI risks and governance maturity. Effective reporting should focus on practical insights, emerging risks, and control effectiveness rather than technical complexity.
7. Become a trusted advisor.
One of finance and internal audit’s greatest opportunities is engaging early in the AI lifecycle. By providing advisory input before systems are deployed, finance leaders and auditors can help organizations build appropriate governance, accountability and controls from the outset rather than remediating issues later.
Taken together, these steps help finance leaders and internal auditors move from reactive oversight to proactive governance.
Positioned to Lead
The emergence of AI does not require finance and internal audit to abandon its core strengths. In fact, the opposite is true.
Finance leaders and Internal auditors already excel at understanding complex processes, evaluating controls, assessing risk and providing independent assurance. Those same capabilities are exactly what organizations need as AI becomes embedded in everyday operations.
The challenge is not learning an entirely new discipline. It is applying proven audit principles to a new type of workforce participant, one that never sleeps, scales instantly, and increasingly influences business outcomes.
As AI adoption accelerates, companies will need trusted advisors who can help answer fundamental questions:
- Where is AI operating?
- What authority has it been granted?
- Who is accountable for its decisions?
- How are risks monitored and controlled?
Finance and internal audit are uniquely positioned to provide these answers.
Steps to Take Now
For organizations wondering where to begin, consider these immediate actions:
The unseen employee is already here in the form of AI, and its influence continues to grow.
Internal audit’s role is not to slow innovation; it’s to make innovation trustworthy, accountable and sustainable.
