Internal Audit's Crucial Role in Navigating the EU AI Act: A Global Compliance Imperative

The EU AI Act, set for full enforcement by 2026, establishes a comprehensive, risk-based regulatory framework for AI systems, with significant extraterritorial reach. This legislation mandates robust governance, control, and documentation for AI, particularly for 'high-risk' applications, making AI risk a regulated domain for organizations worldwide. Internal audit functions are uniquely positioned to provide assurance over AI governance, risk classification, data quality, human oversight, and third-party AI risks, ensuring compliance and mitigating significant operational and reputational exposure.