The audit industry is on the cusp of a significant transformation driven by the emergence of artificial intelligence (AI) agents. As robotic process automation (RPA) reaches its limitations, AI agents are poised to revolutionize the way audits are conducted, offering greater efficiency, accuracy, and insights.
The Rise of AI Agents
RPA has played a significant role in streamlining audit processes by automating repetitive tasks like data extraction and reconciliation. However, RPA lacks the cognitive abilities to handle complex scenarios, analyze data, or adapt to changing circumstances. Furthermore, RPA scripts frequently break whenever the slightest changes are made to the underlying website or document on which the script is trained. This is where AI agents come in.
AI Agents are smart, and they can use computers the way people do: by looking at a screen, moving a cursor, clicking, and typing text. AI Agents can learn, reason, and make decisions. They can analyze vast amounts of data, identify patterns, and predict risks with far greater accuracy than RPA. This opens up a world of possibilities for the audit industry.
Current State of AI Agents
AI Agents are the next big thing in the world of AI, and we are at a very early stage. We were excited to see Anthropic Claude release “computer use” a couple of weeks ago, which is one of the first examples of AI Agents in the public domain.
Check out this Anthropic video, which demonstrates a workflow automation example using an AI Agent:
Transforming the Audit Process
When we see that video, we see the future of audit. In the next three years, we can expect AI agents to significantly impact the audit process in the following ways:
- Process Automation: There are so many mundane tasks that currently require a human to work in between applications to process a workflow. In the video, a human would need to complete the data entry task by taking the data out of the spreadsheet and entering it into the web application. In the next three years, we will be able to easily train AI Agents to automate those workflows just by following along with how the human processes the data.
- Enhanced Efficiency: AI agents will automate a wider range of tasks, from document review and risk assessment to fraud detection and audit report generation. This will free up auditors' time to focus on higher-level analysis and judgment.
- Improved Accuracy: AI agents will analyze data with unprecedented accuracy, identifying anomalies and potential risks that might be missed by human auditors. This will lead to more reliable and insightful audits.
- Deeper Insights: AI agents will analyze data from multiple sources and identify complex relationships that humans might not be able to see. This will provide auditors with a deeper understanding of the client's business and risk profile.
- Continuous Monitoring: AI agents will continuously monitor audit data in real time, identifying potential deficiencies as they arise and potentially fulfilling the idea of a continuous audit. This will enable auditors to provide more proactive and preventative advice.
The Future of the Audit Profession
The rise of AI agents will not eliminate the need for human auditors. Instead, it will redefine the role of auditors, requiring them to possess strong analytical skills, critical thinking, and the ability to interpret and communicate the insights generated by AI.
The audit profession will need to adapt to this changing landscape by investing in training and development programs to equip auditors with the necessary skills to work effectively with AI agents. In reality, however, the ability to code is becoming easier with AI. Prompting will become a key skill in the auditor’s toolkit that is just as valuable as mastering Excel. It will be natural language-based and will require the auditor to clearly and accurately articulate tasks for the AI to complete. In that sense, AI will become a personal assistant that can carry out tasks on command.
In the case of AI Agents, many of those tasks will be done autonomously. In other words, the task may be repetitive in nature, and the auditor may train the AI to complete it and then let it run continuously and autonomously to repeat it.
The Next Three Years
The next three years will be a period of significant transformation for the audit industry. As AI agents become increasingly sophisticated, they will reshape how audits are conducted, leading to greater efficiency, accuracy, and insights. By embracing AI and adapting to the changing landscape, early adopters will improve audit quality, expand margins, and drive growth.
In the next few weeks, Tellen will release some examples of how AI Agents can be applied to the audit workflow. If you are curious about how to apply AI Agents to your business, please reach out to us to learn about how the Tellen AI Platform can get you in the game.
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