Responsible AI, internal audit, AI governance

Explore how Responsible AI is enhancing risk functions to deliver value and AI innovation.

AI is no longer on the horizon; it’s already reshaping how Irish businesses operate. From predictive analytics and GenAI-powered customer support to automated underwriting and risk modelling, AI is embedded across the enterprise. But with rapid adoption comes rising complexity — and risk. Without robust governance, AI can introduce bias, privacy violations and compliance breaches. That’s why internal audit teams in Ireland have a unique opportunity: to lead the charge on Responsible AI or risk being left behind in the wake of a model failure or regulatory misstep.

Internal audit: positioned to lead on AI governance

Internal audit functions are evolving. No longer just compliance watchdogs, they’re becoming strategic enablers of trust and transformation. With enterprise-wide visibility and a mandate for independent assurance, internal audit is ideally placed to:

• evaluate AI governance structures;
• advise on responsible AI deployment; and
• assess control design and effectiveness.

By embedding themselves early in the AI lifecycle, audit teams can help shape innovation that’s not only bold, but responsible.

Why this matters now, especially in Ireland

Irish organisations are navigating a landscape of accelerated transformation and tightening regulation. According to our latest CEO Survey, 29% of Irish CEOs believe their organisation might not be viable in ten years without reinvention.

Meanwhile, our GenAI Business Leaders Survey shows that 98% of Irish businesses have started their AI journey. However, only 6% have deployed AI at scale and 79% have yet to fully implement AI governance frameworks.

With the EU AI Act now in effect, Irish organisations face new obligations including AI literacy, risk categorisation and human oversight for high-risk systems. Internal audit can play a pivotal role in helping organisations meet these requirements while unlocking value from AI.

AI is reshaping internal audit, fast

Just as cybersecurity became a board-level priority a decade ago, AI risk is now front and centre in audit committee discussions across Ireland. And for good reason.

AI is transforming core business processes, from decision-making and forecasting to customer engagement, often faster than governance frameworks can keep pace. Organisations without a clear strategy or inventory of AI use cases are especially exposed.

Left unchecked, AI systems can:

• Make decisions that breach privacy, fairness or ethical standards;
• Obscure explainability, complicating audit and regulatory compliance; or
• Introduce security and IP risks through third-party models or data leakage.

Boards, regulators and customers are asking tough questions and internal audit is well-positioned to answer them. But only if equipped with the right mandate, capabilities and frameworks.

This is a moment of opportunity. Internal audit can step up as a strategic enabler of Responsible AI, helping Irish organisations innovate with confidence while keeping trust and transparency at the core.

How internal audit can drive Responsible AI in Ireland

Here are five key actions to prioritise:

1. Map the AI landscape
   Create a living inventory of AI systems, including third-party tools, to assess risk exposure, regulatory compliance and audit readiness. This forms the foundation for strategic oversight and future assurance planning.
   
   
2. Evaluate governance structures
   AI governance is often fragmented. Internal audit can bring clarity by reviewing decision rights, escalation paths and oversight responsibilities. Ensure governance is documented, resourced and operational.
   
   
3. Assess risk and control frameworks
   AI introduces risks that traditional controls may not cover such as bias, explainability and data drift. Audit teams should assess whether frameworks like the NIST AI Risk Management Framework or ISO 42001 have been adapted to address these risks effectively.
   
   
4. Embed audit into AI design
   Post-deployment reviews are no longer sufficient. Internal audit should be involved from the design phase, especially for high-risk or customer-facing models, to ensure transparency, fallback controls and intended use are clearly defined.
   
   
5. Use AI to audit AI
   Internal audit can harness AI tools for control testing, anomaly detection and document summarisation. This not only improves coverage and efficiency but also builds credibility in advising on AI adoption.

We’re here to help you

As AI becomes more deeply embedded in business operations, internal audit functions should evolve to provide timely, tech-enabled assurance. We help organisations modernise their internal audit capabilities to address AI-related risks, strengthen governance and deliver greater strategic value. Contact us to day to empower your teams to lead confidently in a rapidly changing digital environment.