The Impact of Artificial Intelligence Technologies on Internal Audit Efficiency: The Case of the Iraqi Banking Sector

Ashraf Hashim Faris Alabdoon () and Fatima Sabah Madhlom
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Ashraf Hashim Faris Alabdoon: Tikrit University, Faculty of Administration and Economics
Fatima Sabah Madhlom: Tikrit University, Faculty of Administration and Economics

A chapter in Entrepreneurship and Human-Centric Business Strategies for Social and Economic Resilience, 2026, pp 629-641 from Springer

Abstract: Abstract This paper examines the impact of artificial intelligence (AI) technologies on the efficiency of internal audit operations. The research sample includes 10 banks listed on the Iraq Stock Exchange from 2014 to 2023. To collect primary data on the research variables, in their internal audit operations, AI technologies were evaluated in terms of banks’ adoption of AI dimensions, including machine learning, natural language processing, software robotics, and automation. Internal audit efficiency was measured using the qualifications of the internal audit department staff. The results indicate a direct relationship between the use of AI technologies and internal audit efficiency, suggesting that increased adoption of these technologies is associated with enhanced internal audit efficiency in banks. The results also demonstrate AI technologies’ positive and statistically significant impact on internal audit efficiency. The results of the current study provide a deeper understanding of the impact of AI technologies on internal audit quality, as well as the challenges that may hinder their implementation in internal audit, including security and privacy issues and a lack of technical skills among auditors. The study highlights the importance of AI in improving financial audit operations in multiple ways. Banks can streamline operations and enhance risk management and decision-making by leveraging AI technology to analyze complex data, identify trends, and ensure financial stability.

Keywords: Artificial intelligence technologies; Internal audit; Banking sector; Iraqi banks (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:spr:prbchp:978-981-95-6415-6_40

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DOI: 10.1007/978-981-95-6415-6_40

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