Regulatory & Compliance

Challenges for audit firms in auditing AI-enabled business models

Dr. Fabian Schmid
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The FINMA requirement for explainability of AI-supported business models in the financial industry presents auditors with new challenges.

Artificial intelligence (AI) is revolutionising the financial sector, but auditing it poses major challenges. FINMA requires AI-supported business models to be transparent and comprehensible. However, many AI models are based on algorithms and probabilities, which makes them difficult to explain. Audit firms are faced with the question of how such systems can be audited in accordance with regulatory requirements. FINMA emphasises that existing risk requirements also apply to AI - but many questions remain unanswered, particularly with regard to governance, ethics and human oversight.

In the Handelszeitung of 26 September, we shed light on these complex challenges and provide an insight into the current debate surrounding AI and regulation.

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