MVP, Gokongwei audit forum says internal audit is not a barrier to AI

• Spearheaded by the Internal Audit Group of PLDT and Smart in collaboration with MVP Group and JG Summit Holdings Internal Audit teams, the event featured a panel discussion with (L-R) David Gulliver Go, Chief Human Resources Officer of JG Summit and Director of Cebu Air, Francis Flores, Global Managing Director of Pickup Coffee, and Dr Erika Legara, Director and Chief Data Officer of the Philippine Center for AI Research, which was moderated by Gian Lao of PLDT and Smart’s Public Engagement and Corporate Communications Group.

As more companies adopt artificial intelligence across their operations, business leaders from the MVP Group and Gokongwei Group said internal audit should be seen as a guide for responsible innovation, not as a roadblock to technology adoption.

The message was highlighted during a recent forum organized for International Internal Audit Awareness Month, led by the Internal Audit Group of PLDT Inc. and Smart Communications Inc. in collaboration with the MVP Group and JG Summit Holdings Internal Audit teams.

Dr. Erika Legara, Director and Chief Data Officer of the Philippine Center for AI Research, said internal audit plays an important role in helping organizations identify risks, gaps, and unintended effects as AI systems are developed and deployed.

“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,” Legara said.

She said many executives still associate audit with inconvenience, but warned that this mindset may already point to a deeper risk within an organization.

“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,” Legara 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.”

“At scale, the most valuable partner is one who tells you what you’re missing,” she added.

The forum also featured a panel discussion with Legara, JG Summit Chief Human Resources Officer and Cebu Air Director David Gulliver Go, and Pickup Coffee Global Managing Director Francis Flores.

Gina B. Santos, FVP and PLDT Group Internal Audit Head, said businesses today face a more complex operating environment marked by rapid change, stricter regulations, global supply chain pressures, and the growing use of AI and data-driven technologies.

“Today, businesses operate in a complex environment where rapid change is raising the demands on how we grow, innovate, serve customers, and act with speed. At the same time, we also face stricter regulations, heightened scrutiny, global issues affecting supply chains and costs, and rapid technological changes, including AI and data-driven transformation,” Santos said.

She said organizations must not only act quickly, but also make decisions that lead to measurable and meaningful outcomes.

“The question before us is not simply, how do we act? The real question is how do we act with speed, sound judgment, and a clear focus on measurable impact? This is the heart of our theme today, Igniting Action, Advancing Impact, because action alone is not enough. It must lead to outcomes that matter: Stronger businesses, resilient operations, better decisions, and greater value for the people we serve,” she added.

PLDT Chairman Manuel V. Pangilinan, in a recorded message, emphasized that trust remains central to how companies operate.

“Our companies run on trust: The trust of our shareholders, boards, stakeholders, and customers, whose patronage and business we depend on. 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,” Pangilinan said.

Former Chief Justice and PLDT director Artemio Panganiban also underscored the role of internal audit in helping companies act early amid technological disruption, cybersecurity challenges, and geopolitical shifts.

“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. This is where internal audit delivers its greatest value, not only as a provider of independent assurance but as a catalyst for action,” Panganiban said.

PLDT Chief Operating Officer Menardo “Butch” Jimenez Jr. said AI may be able to perform many tasks, but accountability, integrity, and instinct remain human responsibilities.

“Only humans can be accountable,” Jimenez said, adding that AI is also incapable of integrity. “It will do what you ask it to do. It has no morality.”

Jimenez also said human experience continues to matter in business decision-making.

“For us who have been working in certain industries for a long time, sometimes we make decisions based on the wealth of knowledge that we have. That’s called instinct. I don’t think AI has instinct,” he said.

During the panel discussion, Go said large and diversified organizations must take a careful approach to AI adoption, especially when employee experience, data integrity, and cybersecurity are involved.

“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 internal audit check the possible loopholes and leakages that may happen when we use AI in it,” Go said.

Flores, speaking from the perspective of a fast-growing start-up, said companies must first master business fundamentals and build strong internal systems before adopting more advanced AI tools.

“Internal systems act as your guardrails so you can continue to grow not just with speed but with excellence,” Flores said.

Legara said audit teams must also evolve as AI and other emerging technologies reshape business operations.

“The audit function that will matter in the next decade is one with enough technical fluency to ask the right questions about these technologies. 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,” she said.

The session drew around 1,500 online attendees across the MVP and Gokongwei groups, along with around 200 onsite participants. It was moderated by Gian Lao of PLDT and Smart’s Public Engagement and Corporate Communications Group.

PLDT said its support for International Internal Audit Awareness Month is aligned with its commitment to customer experience and operational excellence.