Page 53 - Banking Finance July 2023

FEATURES

Institutions must prepare themselves for

auditing AI-based governance systems: SC

bserving that artificial intelligence (AI) is making "Responsible AI stands on four pillars - organisational
O "greater inroads" into governance, Comptroller democratisation that empowers and encourages individuals
to raise concerns; systems that enable AI to flourish; systems
and Auditor General (CAG) of India Girish
and platforms that are trustworthy and explainable by
Chandra Murmu said that Supreme Audit
Institutions (SAI) must inevitably prepare themselves for design, and articulation of responsible AI Mission that is
auditing AI-based governance systems and look for anchored in organisational values and ethical guardrails,"
opportunities to adopt AI into their audit techniques to the CAG said. "With AI making greater inroads into
increase their effectiveness. governance, SAIs must inevitably prepare themselves for
auditing AI-based governance systems. Simultaneously, SAIs
Addressing the second SAI20 Summit of the SAI20 must look for opportunities to adopt AI into their audit
Engagement Group under the Indian Presidency of G20, techniques to increase their effectiveness."
Murmu said, "The reality of Artificial Intelligence has come
"As availability of updated data is the bedrock on which any
a long way since the term was first coined in 1956 by John
responsible Al system can unlock its full potential, the
McCarthy at a workshop held in Dartmouth. It is an integral
primary concern for the auditor is to ensure data accuracy,
part of our lives, whether we realise it or not. There is a
reliability and integrity, backed by an independent and
curiosity and belief that AI can help countries achieve
robust system that periodically collects and collates data.
development goals, impacting economic growth while
Moving beyond these fundamentals, I am of the view that
simultaneously disrupting labour markets."
the auditor must seek to provide the assurance that Al-
based decisions do not result in exclusions, biases or
"At an individual layman level, Chat GPT compelled us to
recognise it and also triggered the debate of its utility vis-à- violations of privacy," he said.
vis its risks, especially if recklessly used by young students.
Talking about Blue Economy (marine resources), Murmu
This combined with a spate of statements by the very
said, "As Blue Economy gains primacy, so will its audit. To
developers in the field, concernedly commenting on its
keep ahead of the curve, the SAI20 community must
considerable carbon footprints, risks, ethicality and
prioritise collaborations in arriving at new techniques, skills,
challenges, underscores the need for Responsible AI,"
capabilities and methods." I would urge that we proactively
Murmu said at the summit, which was inaugurated by Goa
formalise channels and platforms that would facilitate this,
Governor P S Sreedharan Pillai.
he said.
Amitabh Kant, India's Sherpa at G20, also addressed the
Murmu also announced the establishment of a Center for
SAI20 Summit, which will discuss two themes - Blue Economy
Excellence in the Blue Economy at SAI India's International
and Responsible AI - over two days.
Centre for Environment Audit and Sustainable Development,
Jaipur.
Highlighting the need for responsible AI, Murmu said,
"Considering the power, possibility and perils of AI, it is Speaking on the occasion, Amitabh Kant said India's G20
essential that policy makers put in place processes to Presidency is based on the theme of 'One Earth, One Family
responsibly harness the potential of this technology." and One Future'.
48 | 2023 | JULY | BANKING FINANCE