The Audit Podcast: Ep 260

How EY Is Helping Clients Implement AI w/ Paul Goodhew (EY)
Host: Trent Russell | Guest: Paul Goodhew, EY Global Assurance Innovation and Emerging Technology Leader
Date: October 21, 2025

Episode Overview

This episode focuses on how Ernst & Young (EY) is helping clients implement AI, with insights from Paul Goodhew, EY Global Assurance Innovation and Emerging Technology Leader. The discussion traverses practical use cases, the necessity of AI governance, the challenges for auditors and assurance professionals, and how EY is rolling out AI training globally. The episode provides practical guidance and high-level perspectives on integrating AI into audit—its opportunities, challenges, and governance requirements.

Key Discussion Points & Insights

1. The Transformative Power and Risks of AI

• AI’s Ubiquity & Potential: Paul underscores that AI is becoming as foundational as prior game-changers like Excel or data analytics tools, but with a far faster and broader impact.
• Rapid Adoption:

  “These are tools that have gone from zero to hundreds of millions of users in a matter of months. That kind of adoption has never been seen before across any technology ecosystem.” (Paul, 10:13)

• Risks & ‘Hallucinations’:

  “If people aren't understanding what some of those limitations are, it's a technology that increasingly we will be interacting with on a daily basis, personally and professionally. And we need to understand where we'll be interacting with artificial intelligence.” (Paul, 00:00 / 10:58)

2. Practical Use Cases—Professionally and Personally

• Swiss Army Knife Analogy:
  Paul likens generative AI tools to a Swiss army knife for research, analogy generation, scenario modeling, simplifying complex tech concepts—both at work and in daily life.

  “...really useful tool to actually go and understand, dive deep into technical topics, understand them, unpack them, create analogies, create ways of explaining a complex topic to a wide audience.” (Paul, 01:48)

• Real-Life Example:
  Trent shares using ChatGPT to analyze a home misting system and troubleshoot household appliances by sending in pictures, highlighting AI’s value in filtering information overload.

  “Being able to take a picture of something, it recognize what the picture is and then be able to tell you whatever questions you have based off the picture–... I definitely don't want to have to watch the 30 minute YouTube video...” (Trent, 04:55)

3. Essential Advice for Auditors: Embrace AI & Stay Current

• One New Tool a Month:

  “I would really encourage people to be looking to try like one new AI tool a month… Every time I found that I've used a new tool, a new AI tool over the last year or so, it's just opened my eyes to the art of the possible.” (Paul, 07:18)

• Why This Wave Is Different:
  Paul explains that unlike previous tech shifts, AI is both moving faster and is central to both opportunity and risk.

  “You need to understand its potential and its limitations as well. And that's where I think it differentiates from some of the more linear automation tools that we might have seen in the past.” (Paul, 10:08/10:58)

4. EY’s Approach: Client Implementation & Assurance Framework

• Early & Current AI Use Cases at Clients:
  • Customer service automation (AI chatbots)
  • Loan decision-making
  • Generative AI in finance for accounting research, reconciliations, and even draft financial statements (cutting edge)
  • Shift from isolated to function-wide & enterprise-wide AI strategies
• Developing Robust Assurance:
  EY has created an “AI Assurance Framework” guiding professionals in evaluating risks of AI-embedded finance processes, including those that could impact material misstatements.
• Governance Comes First:

  “When an external auditor has to consider the risks associated with AI implemented by a client, they have to think about a couple of things and it really starts with governance.” (Paul, 19:25)

  • Is there a defined oversight committee?
  • Are roles and responsibilities clear?
  • Is real-time model performance monitoring in place?

5. The Governance Imperative

• Widespread Governance Gaps:
  Trent notes many clients lack formal AI governance, often just having minimal guidelines like “don’t put this data in the tool.” Both agree that AI governance audits/advisory should be top priority.

  “If you're an internal audit and you don't have… an advisory or an audit around AI governance, again, I can't really think of anything that's going to be too much higher on the priority list.” (Trent, 22:07)

• Definition & Inventory:
  Before governance, many organizations are still working to define what “AI” means, then mapping where it’s used.

  “Many organizations are having to even create their own definition of artificial intelligence... to inventorize AI usage across their business and understand ...usage.” (Paul, 23:47)

6. AI Agents and the Near Future

• EY’s AI Audit Platform Progression:

  • Early ML used for risk recommendations.
  • Now adding generative AI for summarizing standards, producing faster responses.
  • Next: agentic AI—multiple agents interacting autonomously to support and augment audit processes directly within EY’s platform.

  “You actually have multiple AI agents interacting with one another… we have the potential to use agentic AI where agents can perform multiple tasks or multiple activities to help deliver an audit.” (Paul, 27:41)

• Agents as Team Augmentation:

  “The important piece for me is it's augmenting the team. Right. It's not replacing it. … For me, it's a booster... It doesn't replace what a human does, but it augments and boosts it.” (Paul, 31:56)

7. Training 400,000 People on AI at EY

• Foundational Training for All:
  • Company-wide “basics of AI” training.
  • In assurance, more advanced and specialized modules.
• Usage Guidelines and Acceptable Use:
  • Policies for responsible AI use in regulated audit environments.
  • Layered with guidance on risk assessment of client AI use.

  “We've implemented acceptable usage policies, how our people should actually use artificial intelligence appropriately and responsibly in the course of delivering our assurance services.” (Paul, 34:26)

8. Responsible AI Is Everyone’s Job

• Paul’s Closing Thought:

  “What I would encourage everyone is really to make sure that you're experimenting with AI, using it, testing it, understanding how it works, because being able to use it responsibly is on all of us.” (Paul, 36:47)

Memorable Quotes (with Timestamps)

• On Urgency:

  “If you’re not properly embracing the latest technology and looking to keep pace… you’re really at risk of falling behind the curve.” — Paul (07:18)

• On AI’s Unique Pace:

  “AI is a technology that is challenging organizations to rethink their governance, probably at a pace never before experienced.” — Paul (25:59)

• On Governance Priority:

  “If you're an internal audit and you don't have… an advisory or an audit around AI governance… I can't really think of anything that's going to be too much higher on the priority list.” — Trent (22:07)

• On Training the Workforce:

  “We’ve made training available for all of our EY people just on the foundations of artificial intelligence… what are the risks associated with AI.” — Paul (34:26)

• On Human-AI Collaboration:

  “AI can help you do a first version, or it can give you some recommendations... It doesn't replace what a human does, but it augments and boosts it.” — Paul (31:56)

Key Timestamps for Important Segments

• [00:00] AI’s power, potential, and risk of hallucinations — Paul
• [01:48] Using AI as a Swiss army knife, both professionally & personally — Paul
• [07:07] Advice for auditors & professionals: stay current and experiment — Paul
• [10:08] Why AI’s tech wave is different from past shifts — Paul
• [12:39] EY’s client use cases and implementing AI Assurance Framework — Paul
• [19:25] How auditors can approach controls and governance for AI use — Paul
• [22:07] The central importance of AI governance audits — Trent
• [27:41] The next wave: AI agents and their audit applications — Paul
• [34:26] EY’s approach to training 400,000 people on AI, including usage policies — Paul
• [36:47] Responsible AI is everyone's job; closing thoughts — Paul

Tone & Takeaways

The conversation is practical and optimistic but deeply conscious of the complexities and speed with which AI is advancing. Both Trent and Paul maintain a tone of urgency mixed with realism—change is inevitable, governance is critical, and training is non-negotiable. Experimentation and responsible use are recurring themes, encouraging auditors and organizations to embrace and harness AI while acknowledging the risks.

Summary prepared for listeners who want actionable insight into how leading firms like EY are handling AI implementation—from frontline innovation to system-wide governance and culture change.