Time to audit your AI algorithms

Iuliana Sandu (), Menno Wiersma () and Daphne Manichand ()
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Iuliana Sandu: Rotterdam School of Management and Erasmus Center for Data Analytics, Rotterdam, Netherlands
Menno Wiersma: Protiviti The Netherlands, Amsterdam, Netherlands
Daphne Manichand: Protiviti The Netherlands, Amsterdam, Netherlands

Maandblad Voor Accountancy en Bedrijfseconomie Articles, 2022, vol. 96, issue 7-8, 253-265

Abstract: Undoubtedly, the use of algorithms, and Artificial Intelligence (AI) algorithms in particular, has numerous benefits. Fields such as finance, healthcare, automotive, education, and recruitment, to name a few, have demonstrated successful application of AI algorithms. Conversely, cases of bad algorithms abound and lead to lost revenue, discrimination, disinformation, or even bodily harm. Currently, we have surpassed the stage of just observing bad algorithms. New European regulations governing AI force organizations to manage the risks introduced by algorithms and convince the public about the proper functioning of algorithms. In this context, can algorithms be rigorously audited to build public trust and if yes, how? This article aims to answer these questions by building on an auditing framework for model risk management that controls for the novelty introduced by AI algorithms while connecting AI algorithm audit with internal audit terminology.

Keywords: Artificial; Intelligence; audit; algorithms; internal; audit; model; risk (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:arh:jmabec:v:96:y:2022:i:7-8:p:253-265

DOI: 10.5117/mab.96.90108

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