Auditing artificial intelligence

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In today's fast-paced business world, artificial intelligence (AI) is a game-changer, driving innovation and efficiency. However, with its immense potential comes significant risks. Our expertise in auditing AI helps organizations navigate these risks, ensuring trust and transparency.

The transformative impact of AI

AI is revolutionizing industries by automating tasks and providing deep insights. But to fully harness its power, organizations must address the associated risks and maintain stakeholder trust.

Key AI risks

Understanding the risks is the first step in managing AI effectively:

Security and privacy:

Data breaches: AI systems can be vulnerable to cyber-attacks
Reputational damage: Breaches can harm an organization's reputation
Privacy regulation violations: Non-compliance can lead to legal penalties.

Data management:

Data quality and integrity: Poor data quality can lead to inaccurate outcomes
Data bias: Biased data can result in unfair decisions
Legal liabilities: Inaccurate outcomes can lead to legal issues
Loss of client trust: Poor data management can erode trust.

Intellectual property:

Ownership issues: Unclear legislation on AI-generated content can lead to disputes.

Regulatory and professional standards:

Unclear guidance: Lack of clear regulatory guidance can pose challenges.

Policy:

Alignment with data governance: Failing to update policies can lead to ethical concerns.

Brand and marketing:

Bias amplification: AI can perpetuate biases, negatively impacting brand image
Creativity and originality: Overreliance on AI can reduce creativity.

Internal audit functions are crucial in ensuring AI programs are effective, secure, and compliant. They can add value through:

AI use case intake process: Evaluate processes for identifying and prioritizing AI use cases
AI governance model: Assess the overall governance and risk management structure
AI framework and policy: Review policies and frameworks guiding AI development
AI governance workshops: Educate stakeholders on best practices
Data governance reviews: Examine data management practices and compliance
AI security and privacy: Focus on security and privacy aspects
Third-party/vendor management reviews: Review processes for selecting and managing AI vendors
AI solution pre/post-deployment assessments: Evaluate performance and impact before and after deployment.

KPMG offers tailored solutions to address the unique challenges and opportunities of your organization:

Tailored AI solutions:

Customized to fit your specific needs.

Strengthened AI governance:

Assistance in establishing robust governance.

Enhanced cybersecurity:

Expertise in protecting AI systems.

Skilled audit teams:

Teams with the necessary skills to provide valuable insights.

Dive into our thinking

Auditing artificial intelligence

Artificial intelligence (AI) is no longer a distant future—it’s here, transforming industries at an unprecedented pace, bringing both game-changing opportunities and profound risks that no organization can afford to ignore.

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