Internal Audit: Excellence through XAI in BFSI

Authors

  • Sam Varghese PG Scholar, School of Technology Management and Engineering, SVKM’s NMIMS, Indore
  • Niranjan Mahendranath Shastri Associate Professor, School of Business Management, SVKM’s NMIMS, Indore

Keywords:

No Keywords.

Abstract

As India embarks on its journey toward Viksit Bharat 2047, the integration of Artificial Intelligence (AI) into internal auditing holds great promise for enhancing transparency and accountability across various sectors. However, the “black box” nature of AI often leaves professionals in the dark about its decision-making processes, making it difficult to understand why certain transactions are flagged as suspicious while others go unnoticed. To bridge this gap, leading organizations including the Big Four accounting firms and major investment banks are championing the use of Explainable AI (XAI). This approach demystifies AI, allowing auditors to grasp how these systems work and actively engage in their oversight. By promoting trust and clarity, XAI empowers professionals to use AI responsibly and effectively. This article highlights XAI's crucial role in fostering a culture of transparency and ethical auditing practices, which are essential as India strives to realize its vision of Viksit Bharat 2047.

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Published

2025-02-23

How to Cite

Varghese, S., & Shastri, N. M. (2025). Internal Audit: Excellence through XAI in BFSI. The Management Accountant Journal, 60(1), 39–43. Retrieved from https://icmai-rnj.in/index.php/maj/article/view/173806

Issue

Volume 60, Issue 1, January 2025

Section

Cover Story

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