A recent report from AuditBoard, an AI-powered global platform for connected risk, shows that “the internal audit profession is at a crossroads, navigating an environment of hypervolatility defined by accelerating, interconnected risks.”
The survey of 213 global internal audit leaders shows the profession is being challenged by three converging forces: persistently tight resources, the rise of AI, and a demand for role redefinition.
The report highlights, to thrive, internal auditors must overcome resource limitations by leveraging AI as a capacity multiplier while simultaneously upskilling their teams to provide greater “super-human” value.
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Key findings: converging pressures on the internal audit profession
The survey identifies a dangerous gap between aspiration and capability, driven by these core challenges:
- AI readiness lags execution: Only 39 percent of internal audit leaders say AI will significantly transform the profession within five years. At the same time, readiness to provide assurance over AI lags behind adoption. Only 28% of leaders express confidence in their teams’ ability to effectively audit AI risks, and 63% of organizations have not yet defined a formal risk appetite or governance framework for AI use, leaving internal auditors with little structure for oversight.
- The resource paradox: Internal audit continues to face expanding responsibilities with stagnant or shrinking budgets. 43 percent of respondents reported no change in their 2025 budgets compared to 2024, and 18 percent reported reductions. Staffing levels followed a similar pattern, with 57 percent maintaining flat full-time headcounts despite expanding mandates.
- The identity crisis persists: Over half of the respondents aspire to be recognized as trusted advisors, yet fewer than a quarter currently feel their departments are perceived in this way. This is a critical vulnerability, as functions viewed purely as compliance enforcers risk being rendered irrelevant by automation.
The “superhuman” edge
While AI can enhance efficiency, it cannot replicate the deeply human qualities which distinguish outstanding auditors. The 2026 survey identified the top human skills technology is not currently capable of replacing:
- Professional skepticism and inquisitiveness (65 percent)
- Relationship-building and communication (60 percent)
- Ethical judgment (45 percent)
- Critical thinking (41 percent)
“Internal audit stands at a tipping point. The pressures outlined in the report create unprecedented risk for the future of the profession,” said Richard Chambers, Senior Advisor, Risk and Audit, AuditBoard. “Thriving amid hypervolatility requires a two-pronged approach: internal auditors must utilize AI to automate routine tasks, and simultaneously leverage these human ‘superpowers’ to move beyond merely reporting what is happening to become the foresight-driven strategic partners the business needs.”
For strategic recommendations for internal audit leaders for 2026 and beyond, download the full 2026 Focus on the Future report.
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