AI Revolutionizes Banking Audits, Warns Industry Leaders

During the 64th quarterly general meeting of the Association of Chief Audit Executives of Banks in Nigeria (ACAEBIN) in Lagos, senior bankers discussed the impact of artificial intelligence (AI) on the banking sector. Oliv Alawuba, Executive Director of Financial Risk Management at United Bank for Africa (UBA), and Ugochukwu Nwaghodoh highlighted that traditional audit methods can no longer keep pace with the complexities of modern banking systems.

They noted that AI is already reshaping core banking operations, including fraud detection and transaction monitoring. Aina Amah, the earlier chairperson of ACAEBIN, pointed out that while AI presents significant opportunities for risk management and customer engagement, it also introduces new risks related to governance, ethics, cybersecurity, and data quality.

The speakers urged auditors to evolve their skills and adopt new tools to remain relevant in the rapidly changing environment of the banking sector.