Diligent launches AuditAI to streamline internal audits

Diligent has launched AuditAI, a new suite of agentic AI tools for internal audit teams and board reporting. The debut coincides with The Institute of Internal Auditors' Great Audit Minds conference.

The product sits within Diligent's governance, risk and compliance software portfolio. Diligent positions AuditAI as a way to reduce manual work across the audit lifecycle and provide boards with more frequent, structured updates on risks and remediation.

AuditAI builds on Diligent's existing ACL AI offering and is designed to work with Smart Prep 360 inside Diligent Boards. Together, the tools aim to connect board-level signals from governance materials with follow-through actions in an audit programme.

Audit workflow

AuditAI covers planning, request management, evidence collection and reporting, with a focus on reducing the administrative workload that often accompanies audit testing and documentation.

Early adopters have reduced time spent on audit administration by about 70%, according to Diligent, cutting audit cycles from roughly 120 hours of manual coordination to 35.

Automation features include generating and routing evidence requests, tracking follow-ups and monitoring status. Diligent says this replaces manual email chains and spreadsheet trackers.

Another set of tools focuses on audit planning and control intelligence. Based on an organisation's risk profile, the software suggests audit names, entities and assessment factors. It also flags regulatory changes that affect existing controls and testing, and recommends controls where it identifies regulatory gaps.

AuditAI also includes a contextual question-and-answer layer across the Diligent One Platform. It maps relationships between risks, controls, audits and findings, aiming to connect risk identification, remediation and board reporting in one environment.

Diligent says the system keeps auditors in control of key decisions, with structured workflows, approvals and traceability.

Board signals

Diligent has closely linked AuditAI with Smart Prep 360, a tool that reviews board and committee materials. Smart Prep 360 analyses content for accounting anomalies, control gaps, repeat findings and potential fraud indicators.

It then produces questions for directors and audit leaders. AuditAI takes those signals and turns them into audit actions, including risk-aware evidence requests and tracking remediation through to closure.

The launch reflects wider pressure on boards and audit committees following governance failures in which warning signs were present but not addressed. Diligent argues the issue is often not a lack of signals, but the absence of systems that surface issues, assign actions and track closure.

Internal audit teams also face rising expectations without additional headcount. Diligent framed AuditAI as supporting a shift from periodic, sample-based testing and manual coordination to more continuous, risk-aligned activity.

Executive view

Scott Bridgen, General Manager, Risk & Audit at Diligent, said the product addresses demands on audit leaders to extend coverage while keeping outputs understandable for boards.

"Internal audit leaders are being asked to expand coverage, drive greater impact and provide contextual assurance while explaining risk in plain language to the board, all without adding headcount," said Bridgen.

Bridgen added that AuditAI is designed to turn risk signals and audit data into prioritised audit actions and board-ready insights.

"AuditAI transforms risk signals and audit data from external sources into prioritised audit actions and converts those insights into clear, board-ready insights in Diligent Boards. Now, audit teams can spend less time chasing evidence and more time advising the business, while boards get a real-time, transparent view of how risks are being managed," Bridgen said.

Diligent also cited feedback from a customer using the product in internal audit operations.

"Since deploying AuditAI, we've cut the time our managers spend chasing evidence by more than half and eliminated countless email chains and spreadsheets," said Corey Lowry, Internal Audit Manager at Crown Castle.

"Our audit program is far more efficient and responsive. We're able to adapt plans as new risks emerge and focus our time on higher-value analysis instead of administrative follow-up," Lowry added.

Diligent said AuditAI is part of the Diligent One Platform, which it markets to governance, risk and compliance teams, corporate secretaries, general counsel and boards.