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State of Audit and Compliance
AI adoption is accelerating faster than governance. At the same time, audit workloads are rising while compliance teams struggle with fragmented evidence, overlapping frameworks, and unpredictable audits. The 2026 State of Audit & Compliance Report reveals how teams are managing AI risk and preparing for a new era of continuous audit readiness.
Key Insights in This Report
say AI adoption is outpacing security and compliance controls
of organizations resubmit audit evidence due to fragmentation
of leaders say AI could improve their audit readiness
AI is Reshaping Compliance Risk
AI-related incidents are now the top anticipated source of regulatory consequences, surpassing traditional security threats like ransomware. A majority (57%) believe that AI-related data misuse or exposure is most likely to result in egulatory action, audit findings, or customer fallout in 2026 — higher than any other incident type. In addition, 4% are concerned about regulatory or audit scrutiny of AI usage specifically, and 35% cite lack of audit evidence for AI-related controls as a top concern.
believe AI-related incidents most likely to trigger regulatory action
are concerned about regulatory scrutiny of AI usage
cite lack of audit evidence for AI-related controls
Audit Friction is Slowing Teams Down
Even mature programs face operational bottlenecks—from scattered evidence to misaligned auditor expectations. 91% of organizations must resubmit evidence, and 37% do so often or almost always. 53% struggle with collecting evidence across multiple tools. Nearly 35% say evidence isn’t auditor-ready when submitted.
Top compliance challenges (out of 5)
Compliance is becoming continuous
Organizations are shifting from periodic certification to ongoing risk management, supported by automation and integrated audit workflows. 38% expressed concern over passing an unplanned audit reveal that, too often, compliance is still treated as an event rather than a state. Automated evidence collection and continuous monitoring transform audit preparation from a periodic fire drill into an always-current snapshot of your security posture.
Confidence in passing an unplanned audit tomorrow:
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Get the full insights from 536 security and compliance leaders and learn how organizations are closing the gap between AI adoption, governance, and audit readiness.
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