Artificial Intelligence considered the biggest risk to business

While artificial intelligence (AI) is set to impact the majority of sectors across the world UK businesses have expressed it as one of their number one concerns from 2025 onwards, says the CIIA

It is no surprise AI is at the top of people’s mind when it comes to concerns for the future, as job roles could be at risk.

The latest Chartered Institute of Internal Auditors (Chartered IIAs) Risk in Focus report has found an increase in the concern of ‘digital disruption, new technology and AI’ heading towards 2025. It is on the forefront of over half of the 985 respondents who say it will be a top area of focus in the near future.

Deepfake attacks were noted by 83% of respondents as the top threat coming under the digital disruption category.

Anne Kiem OBE, chief executive of the Chartered Institute of Internal Auditors said: ‘AI’s rapid rise as a business-critical risk underscores the unprecedented pace of digital transformation happening around us.

‘While these technological advances offer tremendous opportunities, without proper safeguards, they also pose significant threats.

‘Internal audit is uniquely equipped to provide assurance that cyber, digital, and technology-related controls are not only in place but effective. Boards to confront these risks head-on and leverage the expertise of internal auditors to protect and future-proof their organisations.’

Over the last year the number of businesses incorporating AI for at least one function has shot up to 72%, the five years prior to this was around 50%. The Chartered IIA said: ‘Interest in gen AI has fuelled an intense focus on retooling all AI and digital processes within businesses.

‘If organisations do not have AI in their strategy, they will not be successful in the future.’

However, it is noted that AI specific skilled individuals are expensive, with many respondents saying they are looking to partner with external organisations to fill the gaps.

Additionally, organisations are concerned about the ethical risks associated with AI platforms, with some saying they have avoided the use of AI completely.

Risks here include sharing confidential company information and the lack of accuracy in some AI platforms. One respondent said: ‘Each audit assignment will take into consideration privacy, data governance, transparency, diversity, social risk and environmental exposure.’

Expensive mistakes could be made as a result of decisions made from the influence of AI, especially when deepfake scams are on the rise and becoming more convincing.

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