The proliferation of artificial intelligence (AI) in the past year has been breathtaking. Adoption of generative AI tools alone has exceeded the pace of any technology in human history. As is often observed, AI presents both risks and opportunities for the world – including for our profession: internal auditing.

In June, I published a simulated interview with ChatGPT to illustrate just how powerful and insightful such tools can be. In response to a question I posed about whether AI could replace internal audit, ChatGPT observed:

“AI has the potential to automate certain tasks performed by internal auditors, but it is unlikely to completely replace them. Internal audit involves not only data analysis but also critical thinking, judgement, and understanding of organizational dynamics. While AI can assist in processing large volumes of data and identifying patterns, human auditors bring contextual knowledge, professional skepticism, and the ability to make informed judgements that consider ethical, regulatory, and strategic aspects. The role of internal auditors may evolve with AI adoption, focusing more on higher-value activities like risk assessment, advisory services, and enhancing governance processes.”

In another blog post on the looming AI compliance risks, I noted that, “if internal auditors engage primarily in hindsight and focus our energies on tactical audit engagements, such as assurance on internal controls over financial reporting, we run a significant risk of being disintermediated by AI. However, if we turn our attention on strategic/business risks and other engagements that require professional (human) judgement, we have the opportunity as an enabler to leverage AI, rather than to fear it.”

AI is being used increasingly to design – or redesign – a wide array of objects, systems and processes, including:

• Products
• Manufacturing/industrial processes
• Graphics, art and other images
• Websites
• Conceptual designs
• Architectural plans

But what if we asked AI to design the ultimate member of our profession? What skills, attributes and characteristics would it include in creating an outstanding internal auditor? I put the question to various generative AI tools, and they coalesced around “an exceptional blend” of skills. The top 10 skills (in no particular order) along with the AI tools’ description:

• Analytical prowess – the ability to think critically, solve complex problems and make well-informed decisions based on careful analysis and logical reasoning.
• Business process acumen – a deep understanding and proficiency in the various operational procedures, workflows and best practices within an organization.
• Risk management expertise – the specialized knowledge, skills and experience required to identify, assess and mitigate potential risks that could impact an organization’s objectives, projects or operations.
• Strategic mindset – a cognitive approach characterized by a forward-thinking, holistic and goal-oriented perspective.
• Ethical resilience – the capacity to maintain ethical integrity, principles and values, especially when confronting challenges, pressures or difficult circumstances.
• Dynamic communicator – the ability to convey information, ideas or messages with energy, enthusiasm and adaptability, tailoring the communication style to suit different audiences and situations.
• Agility – the ability to think quickly, make decisions effectively, and adapt to new or complex situations with ease.
• Technology prowess – having competence and capability in using and understanding various technologies.
• Technical competence – exhibiting the proficiency and expertise of internal auditors in understanding and applying the principles, methodologies and best practices of auditing within an organization.
• Intellectual curiosity – a strong desire to explore, learn and understand new ideas, concepts and information.

As I reviewed the skills and characteristics generated by the various AI tools, I couldn’t help but observe the similarities with the traits I found in research that served as the basis for my 2017 book Trusted Advisors: Key Attributes of Outstanding Internal Auditors.

While the emphasis on technology skills and agility has certainly increased over the past six years, the differentiators between those internal auditors who earn and retain a seat at the table and those who are simply good at their job is seemingly evergreen.

I welcome your thoughts on this topic, and what it tells us about the skills that outstanding internal auditors have in common. Share your comments on LinkedIn or X (formerly known as Twitter) or drop an email to me at blogs@richardchambers.com.