Indian Enterprises Face Rising Governance Risks from AI and Cybersecurity

The complex landscape of risk management in India sees AI and cybersecurity emerging as top concerns for Chief Audit Executives. The 2025 IIA-Protiviti survey highlights a pressing need for internal audit digitization, bringing subject matter experts onboard, and the significant role AI and data analytics can play in governance.

Amidst a complex risk management backdrop, Indian enterprises are grappling with new governance risks related to AI, cybersecurity, and emerging technologies. As per the Institute of Internal Auditors (IIA) - Protiviti India Survey 2025, a significant 66 percent of Chief Audit Executives view these technologies as paramount threats to their organizations.

These professionals, central to corporate governance, compliance, and fraud prevention, are increasingly strategic in ensuring business resilience. "Internal audit has transcended traditional compliance to become a governance enabler in a digitally transforming world," said Anthony Pugliese, IIA Inc. President and CEO.

The survey indicates a lag in the adoption of digital tools within internal audit. With 60 percent of departments partially digitized and 23 percent not yet on the digitization path, there is a call to engage domain experts in technical risk detection. Despite the recognized importance of AI and ML, only 18 percent use advanced data analytics extensively, highlighting a gap still to be bridged.

(With inputs from agencies.)