As generative AI becomes embedded in financial reporting and core business processes, organizations must strengthen internal controls to manage new risks around accuracy, governance, data privacy, model changes, and regulatory compliance. The report aligns AI governance with the widely adopted COSO Internal Control Framework, outlining practical controls across governance, risk assessment, monitoring, human oversight, and auditability. It emphasizes managing "shadow AI," maintaining inventories of AI use cases, validating AI-generated outputs, assigning clear ownership, and continuously monitoring model performance. Rather than treating AI governance as a separate initiative, organizations should integrate AI into existing control environments to enable innovation while ensuring reliable financial reporting, regulatory compliance, and operational trust.

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