Business-Critical AI Assessment: The Essential Audit Framework Every Corporation Must Employ
In the rapidly evolving world of artificial intelligence (AI), ensuring responsible innovation and accountability has become a top priority for businesses. With the release of the first global standard for AI management systems, ISO/IEC 42001, in December 2023, the focus on aligning organizations with emerging standards has intensified.
Marc Blythe, President of Blythe Global Advisors (BGA), proposes a structured internal AI audit process that treats AI tools as strategic investments requiring rigorous evaluation. This approach, outlined in the book "The AI Audit Framework Every Company Should Use" by Marc Blythe and Fayeron Morrison, emphasizes clear rules, lines of responsibility, and risk boundaries for AI usage within companies.
Key elements of Blythe's internal AI audit process include:
- Formal Recognition of AI as a Business Investment: View AI deployments with the same scrutiny as financial or operational investments to ensure they meet strategic business objectives and risk tolerance.
- Structured Controls Evaluation Practice: Establish comprehensive controls that monitor AI outputs and impacts on operational and financial outcomes to avoid inconsistent results.
- Clear Governance with Defined Roles and Responsibilities: Develop explicit policies and accountability frameworks to oversee AI tool implementation and outcomes by designated personnel.
- Alignment with Industry Standards: Utilize the ISO/IEC 42001 AI management system standard to frame AI audit procedures and compliance, providing a recognized benchmark for internal audits.
- Continuous Oversight and Risk Management: Regularly assess AI tools post-implementation to ensure ongoing performance within defined risk limits, adapting as new AI capabilities or regulatory requirements emerge.
By embedding these principles, Blythe's approach helps companies innovate responsibly while managing the regulatory and operational risks inherent in AI adoption. This structured internal AI audit process aligns technological innovation with accountability, offering a practical framework grounded in decades of financial control expertise.
As regulatory scrutiny intensifies, with both customers and lawmakers demanding auditable and explainable AI systems, proactive governance is increasingly viewed as an industry best practice. BGA's controls evaluation practice helps companies align innovation with accountability, assisting clients in implementing robust AI audit trails, establishing cross-functional governance groups, and ensuring compliance and transparency.
Many companies have yet to adopt the ISO/IEC 42001 standard, leaving them vulnerable to regulatory and operational risks. However, discussions around the standard are becoming a common agenda item in audit committees, and 76% of organizations plan to pursue AI-specific certification within 24 months, according to A-LIGN's 2025 Compliance Benchmark survey.
In conclusion, the structured internal AI audit process proposed by Blythe Global Advisors offers a practical solution for businesses seeking to navigate the complex world of AI responsibly and accountably. By treating AI tools as strategic investments and implementing rigorous evaluation practices, companies can ensure their AI systems are aligned with their strategic objectives, risk tolerance, and industry standards, ultimately driving successful and responsible innovation.
- Marc Blythe, the President of Blythe Global Advisors (BGA), advocates for viewing artificial intelligence (AI) as a business investment, much like finance and operations, to ensure it meets strategic objectives and risk tolerance.
- To stay compliant with industry standards such as ISO/IEC 42001, BGA guides companies in implementing a structured internal AI audit process that includes continuous oversight and risk management, clear governance, and alignment with industry standards.
