The message took center stage during a forum marking International Internal Audit Awareness Month, where executives from the MVP Group and Gokongwei Group emphasized that effective governance is becoming increasingly important as AI systems influence more business decisions.
The event was spearheaded by the Internal Audit Group of PLDT Inc. and Smart Communications Inc. in collaboration with the internal audit teams of the MVP Group and JG Summit Holdings.
Beyond Compliance
Philippine Center for AI Research director and chief data officer Dr. Erika Legara said in a statement that organizations should view internal audit as an enabler of innovation rather than an obstacle.
"No team, no matter how good it is, can see the whole system and its unintended consequences while they are building it. That's where internal audit comes in. It is not a barrier to innovation, but a way of helping organizations see what the system is actually doing," she said.
Legara noted that many executives still associate audits with inconvenience rather than value.
"When they hear the word 'audit', the feeling is not enthusiasm, but something between inconvenience and dread. However, I have come to think that this reaction itself is a risk signal," she said.
"When an organization treats scrutiny as something to avoid, it often means speed has somehow become more important than accuracy. That maybe we're treating the cost of scrutiny as higher than the cost of being wrong."
She added that as organizations expand the use of AI, independent oversight becomes even more valuable.
"At scale, the most valuable partner is one who tells you what you're missing," Legara said.
Building trust
PLDT chair Manuel V. Pangilinan underscored that trust remains the foundation of every successful business.
"Our companies run on trust: The trust of our shareholders, boards, stakeholders, and customers, whose patronage and business we depend on," Pangilinan said in a recorded message.
"We must earn this trust every day through the quality of our products and services, integrity of our processes, and most importantly, the moral strength of the people who audit us."
Former Chief Justice and PLDT director Artemio Panganiban likewise highlighted the expanding role of internal auditors amid technological disruption, cybersecurity threats, and geopolitical uncertainty.
"Success today depends on our ability to turn insight into timely decisions and meaningful outcomes, not by reacting late but by acting early and with purpose," Panganiban said.
"This is where internal audit delivers its greatest value, not only as a provider of independent assurance but as a catalyst for action."
Human judgment
The forum also featured a panel discussion with Legara, JG Summit chief human resources officer David Gulliver Go, and Pickup Coffee Global managing director Francis Flores.
Go said JG Summit is taking a measured approach to AI implementation by involving employees early in the process while allowing internal audit teams to assess potential risks involving data integrity, cybersecurity, and operational controls.
"We're approaching AI carefully. We don't just say, let's just put everything there. We go first to the actual employees using the system, and have an internal audit check the possible loopholes and leakages that may happen when we use AI in it," he said.
Flores said startups should first establish disciplined business processes before pursuing advanced AI initiatives.
"Internal systems act as your guardrails so you can continue to grow not just with speed but with excellence," he said.
PLDT chief operating officer Menardo "Butch" Jimenez Jr. stressed that while AI can automate many tasks, accountability, integrity, and instinct remain uniquely human capabilities.
"Only humans can be accountable," Jimenez said.
"It will do what you ask it to do. It has no morality."
He added that business leaders also rely on instinct built through years of industry experience—something AI cannot replicate.
Looking ahead, Legara said internal auditors must develop both technical knowledge and self-awareness to remain effective in an AI-driven world.
"The audit function that will matter in the next decade is one with enough technical fluency to ask the right questions about these technologies," she said.
"They should have enough knowledge to ask the right questions, and enough humility to bring in the right people to help them when they reach the limits of what they know. That is the future of audit." —Ed: Corrie S. Narisma
