What initial step is suggested for auditing an organization's AI initiative?

Defining the scope and objectives of the audit is essential as it lays the foundational framework for the entire auditing process of an organization's AI initiative. By establishing clear parameters, the organization can focus on specific areas of concern or interest, ensuring that the audit addresses relevant aspects such as compliance, risks, performance outcomes, and ethical considerations associated with the AI systems in use.

This initial step enables the auditors to efficiently allocate resources, choose appropriate methodologies, and set clear expectations for what the audit aims to achieve. Without a well-defined scope and objectives, the audit could become unfocused or miss critical areas, leading to ineffective outcomes.

Gathering information on competitor strategies, conducting a financial analysis, or creating marketing materials, although can be valuable activities, do not fundamentally address the core purpose of an audit, which is to assess and improve the effectiveness and integrity of the AI initiative itself.