The influence of artificial intelligence in the world of auditing – Digital Economy Blog

2024-02-15 14:52:09

The audit is crucial for any company wishing to ensure its stability and development. This practice, which consists of assessing the compliance and effectiveness of different facets of operations, processes and systems within organizations, is experiencing real progress with the introduction of artificial intelligence (AI).

Massive investment from Big Four companies.

The introduction of ChatGPT has brought artificial intelligence (AI) to the forefront, making the technology a trending topic. However, beyond being a popular subject, the first findings confirm an imminent revolution, particularly concerning our way of working. The world of auditing is not spared by the emergence of this technology since 60% of auditors say they use AI-related tools.

This enthusiasm is also reflected in a significant investment by consulting and auditing firms in the field. Indeed, PricewaterhouseCoopers (PwC) has decided to invest $1 billion in generative AI alone between 2023 and 2026 to accelerate the most time-consuming tasks of its auditors.

For its part, EY, also a member of the Big Four, has invested $1.4 billion in AI. This investment results in the establishment of “ a platform offering businesses AI-based versions of its products and advice “. The platform called “EY.ai” is presented as being able to bring together the human expertise capabilities of this large firm combined with new cutting-edge technologies. This platform consists of four areas: Chart Strategy / Strategy and roadmap, Create Value / Create value, Build Confidence / Strengthen confidence in AI, Empower people / Empower your staff.

This platform includes a generative AI called “EY Intelligent Payroll” which allows employees to answer questions of a certain complexity regarding payroll. It is also possible to find “EY Assurance” on the platform. AI is then used in the insurance services offered by the firm through predictive analysis or even content search.

AI as a growth lever for internal audit.

The arrival of AI is transforming the skills of auditing teams. Artificial intelligence is set to become involved in an ever-widening range of tasks within the auditing profession. Currently, it is control operations that are most affected by the emergence of AI on the market.

Here are several key figures:

• 37% of companies use AI to find anomalies.
• 35% control data quality through AI.
• 25% of companies use AI to detect possible fraud.

There is no doubt that these figures are set to increase as is the use of AI in other areas. The integration of generative AI such as ChatGPT also impacts other aspects of auditing, such as report writing. These documents must meet a variety of requirements, including being written in clear language, defining technical terms, presenting ideas logically, and describing the entity’s processes. AI can then be a way to increase the efficiency of auditors at this crucial stage. However, it is essential that auditors use AI to protect the data entered into the system since they might disclose sensitive information.

However, the impact of AI is not limited to auditing firms alone. According to PWC’s forecasts for the year 2024, AI will revolutionize the way all businesses operate. This technological advancement might significantly increase revenue, primarily due to changes in the way daily tasks are performed.

Towards regulation of this technology with the AI ​​Act.

On February 2, 2024, the AI ​​Act was unanimously adopted by the member states of the European Union. This innovative AI regulation project is part of the EU’s digital strategy and aims to legislate the uses of this technology based on risks.

The text proposes a classification of artificial intelligence according to their level of risk, accompanied by different obligations corresponding to each level in order to regulate and prohibit potential risks. Certain systems are completely prohibited from use by the text such as “biometric categorization systems using sensitive characteristics (for example: political, religious, philosophical opinions, sexual orientation, race)”. This ban is consistent with the personal data regulations adopted in 2016 (GDPR).

France and Germany have expressed reservations regarding the adoption of this text, fearing that it would slow down the development of this technology and restrict the European market under the AI ​​Act. Upon adoption, these concerns were taken into account, leading to clarifications on its application. Thus, small and medium-sized businesses will benefit from legislation adapted to their size, promoting their growth and competitiveness on the international market.

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