The role of artificial intelligence in developing internal audit practices and its implications for geopolitical risks – an analytical theoretical perspective

Abstract

The importance of this research stems from its focus on a contemporary topic comprised of three main axes in the modern business environment: artificial intelligence technologies, internal audit practices, and geopolitical risks. This topic has not received sufficient research and study despite the increasing severity of geopolitical risks and their direct impact on the stability and financial and operational performance of entities. Furthermore, this research aims to bridge the knowledge gap regarding the ability of traditional internal audit practices to address complex geopolitical risks and to clarify the role of artificial intelligence in supporting and enhancing the effectiveness of these practices. The study adopts a descriptive-analytical approach supported by a qualitative approach, as it is suitable for the nature of the research topic, which addresses modern technologies represented by artificial intelligence, its role in developing internal audit practices, and the implications of this for managing geopolitical risks. This approach aims to analyze the practical reality of a sample of commercial banks listed on the Iraq Stock Exchange and to demonstrate how artificial intelligence applications contribute to enhancing the efficiency and effectiveness of internal audit activities, particularly in an environment characterized by escalating and increasingly complex geopolitical risks. A purposive sample of experienced and knowledgeable individuals was selected, including internal auditors, risk management officers, compliance officers, and specialists in digital systems and information technology, in order to obtain in-depth professional insights that align with the research objectives. The research reached a number of conclusions, most notably that the use of artificial intelligence techniques contributes to raising the efficiency of internal auditing by enhancing the ability to predict and detect early political and economic risks affecting the business environment.