75% of companies now use AI in their finance function, but only 42% can trace or explain those AI-assisted decisions to an auditor. Firms that are assurance-ready see 3 to 6 times better error reduction. Those are the ones with documentation, review controls and AI logs in place. The gap between adoption and accountability is growing.

The Signal  — If you can't document how your AI tools reach conclusions, you have a control problem. External auditors are already asking how AI decisions get reviewed, and regulators are formalizing the expectation. The risk shows up in the next audit cycle, not some distant future. What to watch: Expect auditors to add AI governance questions to standard fieldwork by the end of 2026. Firms that build documentation practices now absorb that change without scrambling.

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Jim Smart  ·  Founder, Nexairi

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