Bank Auditors Urged To Embrace Innovation As AI Transforms Landscape

The Association of Chief Audit Executives of Banks in Nigeria (ACAEBIN) has advocated for internal auditors to expand their methodologies beyond traditional periodic reviews and sampling, recognizing the significant impact of AI on real-time decision-making in the banking sector.

During ACAEBIN’s 54th quarterly General Meeting held in Lagos, themed ‘Internal Audit Function in the AI Era’, the chairperson, Mrs. Aina Amah highlighted the transformative role of Artificial Intelligence in banking.

She noted that while AI offers immense potential for enhancing operations in areas such as risk management, fraud detection, and customer engagement, it also brings forth new challenges related to governance, ethics, cybersecurity, data integrity, and model dependability.

Amah emphasised the need for internal auditors to adapt by acquiring new skills, embracing technological innovation, and delivering the assurance and insights required to responsibly integrate AI within their institutions.

In the keynote address, the managing director/CEO of the United Bank for Africa (UBA), Oliver Alawuba, pointed out that AI is rapidly reshaping customer interactions, fraud detection processes, risk underwriting, operational automation, and transaction monitoring.

Representing Alawuba, the executive director of Finance & Risk, UBA, Ugochukwu Nwaghodoh stated, “we are moving into an era where decisions can be made almost instantaneously, and where AI can enhance various aspects of banking, including risk management and fraud detection. This evolution requires that we elevate our approach to internal auditing.”

He stressed that the value of audit in the AI era will increasingly rely on its ability to prevent losses, anticipate risks, provide assurance to the Board, and instill confidence among customers, regulators, and stakeholders.

Alawuba underscored that technology should be viewed as an enabler for auditors, allowing them to focus less on manual tasks and more on providing critical insights, interpretations, and strategic challenges.

“The AI era will reward institutions that embed trust within their systems, products, processes, and culture while holding accountable those that neglect effective controls,” he added.

Alawuba called for a proactive role for internal auditors in major technological discussions, emphasizing the importance of understanding the architecture of AI-enabled products prior to their launch.

He urged auditors to ensure that data used in models is comprehensive, accurate, authorised, and well-protected, as well as to test that outputs are interpretable and that human oversight remains robust.

ACAEBIN is a not-for-profit body designed to foster cooperation, uphold ethical standards, and promote professional competence among bank auditors.