In the brand new March 2026 guidance on generative and agentic AI, the Financial Reporting Council (FRC) states that it supports innovation and the appropriate use of artificial intelligence (AI) to promote high quality audit, economic growth, and the public interest.

The rise of AI in audit, now firmly backed by the FRC, has direct implications for corporate governance. Organisations will need to ensure effective scrutiny of AI tools in both internal and external audit work, adequate integration of AI into their risk register and a strategic assessment of how the use of AI tools fits into the overall approach.