audit
What It Means
An audit is when an independent third party examines your AI systems, processes, and documentation to verify they meet specific standards, regulations, or requirements. Think of it as a thorough inspection that checks whether your AI operations actually do what you claim they do and follow the rules you're supposed to follow.
Why Chief AI Officers Care
Audits are becoming mandatory for AI systems in many industries and jurisdictions, with significant penalties for non-compliance. They also provide crucial evidence that your AI systems are trustworthy and operating correctly, which protects against legal liability and maintains stakeholder confidence. Regular audits help identify problems before they become costly failures or regulatory violations.
Real-World Example
A healthcare AI company undergoes an audit where external reviewers examine their diagnostic algorithm's training data, testing procedures, bias detection methods, and documentation to verify compliance with FDA medical device regulations. The auditors check that the company actually followed their stated quality processes and that the AI performs as claimed in their regulatory submission.
Common Confusion
People often confuse audits with internal monitoring or testing - but a true audit requires independence from the team that built or operates the system. It's also not the same as a security assessment, though security controls are often part of what gets audited.
Industry-Specific Applications
See how this term applies to healthcare, finance, manufacturing, government, tech, and insurance.
Healthcare: In healthcare AI, audits verify that your AI systems comply with FDA regulations, HIPAA privacy requirements, and clinic...
Finance: In finance, AI audits verify that algorithmic trading systems, credit scoring models, and risk management AI comply with...
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Includes:
- 6 industry-specific applications
- Relevant regulations by sector
- Real compliance scenarios
- Implementation guidance
Technical Definitions
NISTNational Institute of Standards and Technology
"Systematic, independent, documented process for obtaining records, statements of fact, or other relevant information and assessing them objectively, to determine the extent to which specified requirements are fulfilled."Source: IEEE_Soft_Vocab
"To conduct an independent review and examination of system records and activities in order to test the adequacy and effectiveness of data security and data integrity procedures, to ensure compliance with established policy and operational procedures, and to recommend any necessary changes."Source: FDA_Glossary
"Independent examination of a software product, software process, or set of software processes to assess compliance with specifications, standards, contractual agreements, or other criteria"Source: NASA_Soft_Standards
"Independent review conducted to compare the various aspects of the laboratory’s performance with a standard for that performance. Also defined as a systematic, independent and documented process for obtaining audit evidence and evaluating it objectively to determine the extent to which audit criteria are fulfilled."Source: UNODC_Glossary_QA_GLP
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