By now, we have seen artificial intelligence used in many ways when it comes to internal audit. The profession is slowly embracing the power of AI in executing internal audit responsibilities from risk assessments to generating engagement reports. Meanwhile, AI has plenty to say about the profession itself. In 2023, I published a simulated interview to document what ChatGPT really thinks about internal audit. As rapidly as things have been moving, it was only a matter of time before AI was going to be leveraged in research about the profession. Naturally, I was pleased to see my old friends at Protiviti pioneering the way.

For the past 20 years, Protiviti has been publishing a regular whitepaper series on leading practices by internal audit functions titled “Internal Auditing Around the World.” I have always found the series to be a great resource for leading practices being pioneered by the world’s bellwether internal audit functions. For its milestone Internal Auditing Around the World 20th Anniversary Edition, Protiviti elected not to focus on the practices of individual internal audit teams, but instead to chronicle the progress the profession has made during the two decades of the series.

Leveraging its own proprietary AI tool, Protiviti reviewed the previous 19 volumes of the series. The analysis of 244 profiles of leading internal audit functions extending back over two decades yielded some fascinating insights about how the profession has matured. The analysis of more than 460,000 words of commentary and insights revealed a number of themes and trends underscoring the transformation of internal audit functions:

• Evolving as Strategic Advisors: The internal audit function, along with the role of Chief Audit Executives (CAE), has transformed from a compliance-centric, retrospective role into a strategically aligned partner that adds significant value to the organization.
• Delivering Value: Over the past 20 years, the focus has shifted from purely compliance and controls to offering a diverse range of assurance and advisory services. This evolution has been instrumental in redefining the internal audit as a function that delivers value and provides essential strategic insights.
• Increased Board Engagement: Boards now increasingly rely on internal audit leaders to concentrate on and advise in high-risk areas beyond just compliance. These areas include cybersecurity, fraud prevention, adoption of new technologies, market expansion, sustainability initiatives, and more.
• Technology and Data Utilization: The modernization of the internal audit function has been significantly driven by technology, particularly through the use of data analytics, automation, and, most recently, artificial intelligence.
• Diverse Talent Development: Leading internal audit functions prioritize attracting, developing, and retaining talent with diverse skills and backgrounds. They emphasize talent management as a key strategic focus, valuing soft skills like communication, critical thinking, and problem-solving, as much as technical expertise in analytics and emerging technologies.
• Agents of Change: Top-tier internal audit teams act as catalysts for organizational change. They provide insights that not only drive improvements but also help their organizations seize opportunities while mitigating risks.

In reviewing Protiviti’s analysis, I was struck by how their findings paralleled my own observations about the profession’s evolution. In my book Trusted Advisors: Key attributes of Outstanding Internal Auditors, I probe the skills internal auditors require to win and sustain the trust critical to providing strategic and operational advice. In addition, my book Agents of Change: Internal Auditors in the Era of Permacrisis, delves into the attributes that internal audit change agents share in common.

As valuable as Protiviti’s and AI’s insights are into how the profession has evolved, it is the advice on where the profession should venture next that makes Protiviti’s report most enlightening. The report advises CAEs and their internal audit teams to deploy five strategies to elevate their functions going forward:

• Prioritize Transformation: Internal audit’s transformation efforts should align with both immediate needs—enhancing business processes, improving customer experiences, boosting quality, increasing operational efficiencies, and managing current risks—as well as long-term strategic planning to develop the skills necessary for future technological and industry advancements.
• Lean on Technology: Future success will require viewing technology not just as a tool but as an integral component of evolving audit practices. When effectively utilized, technology can significantly enhance the relevance and value that internal audit provides.
• Cultivate Talent: High-performing professionals are essential for addressing complex risks and bringing a strategic focus to internal audit. To transform the value proposition of internal audit, functions must cultivate expertise and foster innovative thinking to thrive in the 21st century.
• Adopt an Innovation Mindset: Innovation should extend beyond technology. Internal audit must approach organizational challenges from fresh perspectives and introduce innovative solutions.
• Act as a Strategic Partner through Collaboration and Communication: Exceeding stakeholder expectations has always been crucial to internal audit’s success. Moving forward, internal auditors must strive for greater alignment between the priorities of board members and C-suite leaders and those of internal audit, making this alignment a key focus for every CAE.

The report highlights that these actions will enable CAEs and their teams to remain strategic, highly relevant, focused on value and opportunities, centered on risk, and empowered by technology as advisors.

Thanks to Protiviti for the valuable insights in their 20th anniversary report. I look forward to more research leveraging the power of AI. In the end, however, it will be up to us to leverage the research in crafting the future of our profession.