AI Audit Race Heats Up

The Big Four accounting firms are actively developing audit services for AI products, aiming to capitalise on a market similar to that of ESG metric audits. These audits will assess AI systems for functionality, transparency, ethical behaviour, and compliance with regulations. They will examine the AI system's design, algorithms, data, development, and operation to confirm that the system satisfies performance criteria and complies with regulatory requirements. Areas of focus include minimising bias and ensuring fair outcomes.

AI audits involve stakeholders across the organisation, including senior leaders, legal, developers, security, compliance, and AI practitioners. Key aspects include security and privacy, ethical considerations, transparency and explainability, and accuracy. Firms are drawing on traditional auditing methodologies and AI governance frameworks to create these services. The development of AI audit standards faces challenges such as the lack of a standard AI definition and the need for specialised skill sets within audit teams.

Demand for AI audits is growing, driven by both public sector agencies and private companies procuring AI products. These audits aim to ensure that AI systems are secure, legal, and ethical, reducing AI bias and promoting responsible AI practices. As AI continues to permeate various aspects of life, the ability to audit AI systems becomes increasingly important for maintaining trust and accountability.