Artificial intelligence and audits are coming together in ways that are making things challenging for financial professionals.

That’s the gist of findings of the 2026 Focus on the Future report released on Wednesday by AuditBoard, a leading AI-powered global platform for connected risk.

The report highlighted the internal audit profession is navigating an environment of hypervolatility defined by accelerating, interconnected risks. The survey of 213 global internal audit leaders showed that the profession is being challenged by three converging forces: persistently tight resources, the rise of AI, and a demand for role redefinition.

The report went on to mention internal auditors must overcome resource limitations by leveraging AI as a capacity multiplier while simultaneously upskilling their teams to provide greater value.

“This is the only way the function can thrive in this next-generation environment,” AuditBoard said.

With pressures converging on the internal audit profession, the survey identified a “dangerous gap” between aspiration and capability, driven by these core challenges:

—AI readiness lags execution: Only 39% of internal audit leaders said AI will significantly transform the profession within five years. At the same time, readiness to provide assurance over AI lags behind adoption. Only 28% of leaders expressed confidence in their teams’ ability to effectively audit AI risks, and 63 percent of organizations have not yet defined a formal risk appetite or governance framework for AI use, leaving internal auditors with little structure for oversight.

—The resource paradox: Internal audit continues to face expanding responsibilities with stagnant or shrinking budgets. AuditBoard said 43% of respondents reported no change in their 2025 budgets compared to 2024, and 18% reported reductions. Staffing levels followed a similar pattern, with 57% maintaining flat full-time headcounts despite expanding mandates.

—The identity crisis persists: More than half of the respondents aspire to be recognized as trusted advisors, yet fewer than a quarter currently feel their departments are perceived in this way. “This is a critical vulnerability, as functions viewed purely as compliance enforcers risk being rendered irrelevant by automation,” AuditBoard said.

While AI can enhance efficiency, AuditBoard said it cannot replicate the unique qualities that distinguish outstanding auditors. The survey identified the top skills differentiating auditors in 2026 and beyond:

—Professional skepticism and inquisitiveness

—Relationship-building and communication

—Ethical judgment

—Critical thinking

“Internal audit stands at a tipping point. The pressures outlined in the report create unprecedented risk for the future of the profession,” said Richard Chambers, senior advisor of risk and audit with AuditBoard.

“To thrive amid hypervolatility, internal auditors should utilize AI to automate routine tasks, freeing up teams to focus on more specialized tasks and move beyond merely reporting what is happening to become the foresight-driven strategic partners the business needs,” Chambers went on to say.

For strategic recommendations for internal audit leaders for 2026 and beyond, download the full 2026 Focus on the Future report.