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ALGERIA: Digital transformation and AI adoption in Supreme Audit Institutions: global trends and lessons learned

12.12.2025

Supreme Audit Institutions (SAIs) play a central role in promoting transparency, accountability, and good governance in the public sector [1]. The acceleration of digital transformation, especially through AI adoption, has become a strategic lever for modernizing public audits [2,3]. AI enables real-time data analysis, advanced anomaly detection, and automation of repetitive tasks, improving operational efficiency and freeing auditors for high-value work [2,3]. This trend aligns with global movements toward data-driven governance and agile audit mechanisms [4,5].

1. Factors influencing technology adoption

Successful adoption depends on strategic leadership, a clear institutional vision, and adequate technical readiness [1]. A robust IT infrastructure and specialized skills are essential for effective deployment of AI-assisted audit systems [6].

Organizational culture is critical: institutions open to innovation adopt new approaches more easily and reduce resistance to change [6]. Digital tools improve accuracy, reliability, and timeliness of information. AI strengthens internal controls, enhances anomaly detection, and supports alignment with international standards [6]. Collaboration with professional bodies such as IFAC and ISACA provides SAIs with technical insights, benchmarking opportunities, and access to advanced audit methodologies, accelerating digital transformation.

2. Challenges in digital transformation

Despite its benefits, SAIs face persistent challenges, including data protection, cybersecurity, and ethical concerns [8]. Budget constraints and lack of AI expertise can hinder adoption [9]. Automated systems also raise questions about algorithm reliability and maintaining professional judgment [10].

3. Best practices and lessons learned

Gradual implementation through pilot projects maximizes program success [11]. Continuous training enhances digital skills, while inter-institutional cooperation via ARABOSAI, EUROSAI, and INTOSAI facilitates knowledge sharing and harmonization of practices [11]. AI applications enable real-time anomaly detection, predictive analytics, and risk-based audit planning, demonstrating tangible benefits [12]. For instance, Brazil’s Tribunal de Contas da União identifies irregularities in public procurement using AI, while the European Court of Auditors uses text-mining to analyze spending trends [12].

In ARABOSAI, the IT Oversight Committee focuses on capacity building, data governance, cybersecurity, and knowledge sharing [11]. Sustainable transformation requires ethical frameworks, data policies, and appropriate cybersecurity standards [8].
 

Conclusion

AI-driven digital transformation is redefining the missions and capabilities of SAIs. To maximize its impact, it is recommended to:
1. Establish AI governance frameworks that ensure ethics and transparency.
2. Develop interoperable data infrastructures for cross-institutional analytics.
3. Create innovation labs to test emerging tools.
4. Promote continuous professional development in audit analytics and cybersecurity.


These measures enable SAIs to enhance audit quality, strengthen public trust, and deliver greater value in the digital era.

References

  1. Rusu, L., et al. (2023). Technology Adoption and Digital Transformation by Supreme Audit Institutions. University of Johannesburg.
    2. Farias, D. O., da Silva, E. H. M., dos Santo, E. M. F., Monteiro, M. L. B., & Loureiro, T. C. J. (2023). Evolution and Applications of Artificial Intelligence in SAIs. INTOSAI Journal, Q2 2023.
    3. INTOSAI Journal. (2023). Evolution of AI in Supreme Audit Institutions.
    4. Jarrahi, M. H., Askay, D., Eshraghi, A., & Smith, P. (2023). Artificial Intelligence and Knowledge Management: A Partnership Between Human and AI. Business Horizons, 66(1), 87–99.
    5. Cammarano, A., Varriale, V., Michelino, F., & Caputo, M. (2024). A Framework for Investigating the Adoption of Key Technologies. IEEE Transactions on Engineering Management, 71, 3843–3866.
    6. Irmawati, H., Haliah, & Nirwana. (2025). Digital Transformation of Public Sector Accounting: A Literature Review on Technology Adoption in Government Financial Reporting. Invoice: Journal of Social Sciences, Economics, and Accounting, 3(1), 32–45.
    7. Zamzam, I., Mahdi, S. A. R., & Sardju, F. (2024). The Influence of Competency and Professional Behavior on Internal Auditor Performance in the Digital Era. Australasian Accounting, Business and Finance Journal, 18(2), 120–132.
    8. Kamila, M. K., & Jasrotia, S. S. (2023). Ethical Issues in the Development of Artificial Intelligence: Recognizing the Risks. International Journal of Ethics and Systems.
    9. Goto, M. (2023). Anticipatory Innovation of Professional Services: The Case of Auditing and Artificial Intelligence. Research Policy, 52(8).
    10. Aquino, A. C. B. D., Lino, A. F., Azevedo, R. R. D., & Silva, P. B. D. (2022). Digital Affordances and Remote Public Audit Practice. Financial Accountability and Management, 38(3), 447–467.
    11. Portal.tcu.gov.br. (2023). OLACEFS Launches Digital Transformation Process in Audit Institutions.
    12. Nzobonimpa, S. (2023). Artificial Intelligence, Task Complexity and Uncertainty. Digital Transformation and Society, 2(3), 219–234.

 

By: MAHMOUDI Mhamed
Director of Studies
Court of Accounts of Algeria