Embracing the Future: How AI Will Transform Internal Audit by 2026
As 2025 comes to a close, one thing is clear. AI is no longer a distant concept; it is already reshaping the way we work. From chatbots assisting with fieldwork planning to machine learning analysing entire datasets, the pace of change has been remarkable. The IIA’s Risk in Focus 2026 report highlights that digital disruption, including AI, has risen sharply as one of the top risks for organisations globally, signaling the need for internal audit to adapt and respond thoughtfully.
In our internal audit team at BMW, I have seen firsthand how AI can transform daily work. It helps us plan audits more efficiently, analyse data more thoroughly, and provide insights faster than ever before. Colleagues across the profession are experimenting in creative ways. Some use internal AI chatbots to draft fieldwork plans and reports, freeing internal auditors for deeper analysis. Others explore computer vision in warehouse audits or produce short explainer videos. These examples show that AI is not simply a tool for efficiency. It is changing how we approach audit work and the value we deliver.
What AI Could Mean for 2026
Looking ahead, the possibilities are exciting. AI can make audit planning more responsive, dashboards may provide ongoing assurance, and routine control testing could become automated, allowing internal auditors to focus on areas that need judgment and value-added insights. Predictive analytics may shift our work from retrospective reviews to anticipating potential risks, enabling organisations to act proactively. Stronger AI tools may streamline audit management processes, and younger team members with expertise in emerging technologies can contribute fresh ideas that shape innovation. There is even the potential to provide audit reports to auditees within twenty-four hours of fieldwork completion.
Building Skills and Culture for the AI Era
Technology alone is not enough. How effectively we harness AI depends on mindset, skills, and culture. Lifelong learning is essential. Internal auditors need to embrace AI, data analytics, and innovative approaches to work. Small initiatives, such as sharing articles, podcasts, or training opportunities during weekly sessions, can accelerate adoption. Key cultural and skill considerations include:
- Encouraging experimentation and open sharing of insights
- Fostering humility, emotional intelligence, and clear communication
- Supporting team members with varying comfort and skill levels with AI
Managers play an important role in addressing diverse experiences. Some team members may quickly excel, while others struggle to adapt or worry about job security. Recognising these differences and helping everyone progress together builds resilience and collaboration.
Navigating Opportunities and Challenges
AI offers tremendous opportunities, but it also introduces challenges. Ethical concerns around algorithmic transparency, data privacy risks, potential bias in AI-driven decision-making, and the need for professional scepticism are all critical. Internal auditors play a vital role in assessing if AI tools comply with regulations, data is ethically sourced, and automated processes do not reinforce bias. Diverse teams can test use cases and challenge outputs, ensuring responsible and effective AI adoption.
Moving Forward with AI
AI should not be feared. It is a powerful enabler that can make internal auditing more proactive, insightful, and impactful. Some practical approaches that helped my team in 2025 include building a community of motivated internal auditors who share knowledge, developing hands-on skills through short training sessions, and starting with small AI projects while celebrating early successes. Leadership in this era requires humility, curiosity, and resilience. Remaining critical, sceptical, and committed to integrity ensures AI strengthens professional standards rather than diminishing them.
By 2026, internal auditors who embrace change, seek continuous learning, and prioritise responsible AI use will be the ones shaping the future of assurance. Sharing experiences, challenges, and successes will strengthen collaboration within our profession and help all of us move forward together.
Dr. Eva Peggy Best, CIA, is the Head of Corporate Audit for BMW Region Asia South and Australia. She is an expert in internal audit and corporate governance, with a background in computer science and data analytics.
