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COSO Releases Guidance on Internal Controls for AI

The Committee of Sponsoring Organizations (COSO) issued new guidance on internal controls tailored for generative AI. It adapts COSO’s five‑component framework—control environment, risk assessment, control activities, information & communication, and monitoring—to address AI’s probabilistic, dynamic, and scalable nature. The guidance outlines five foundational principles, recommends continuous risk registers, AI‑specific control activities, and mandates board visibility over AI use. Organizations are urged to implement an AI governance structure, inventory use cases, and embed monitoring metrics to turn AI into a well‑governed asset.