The banking sector is witnessing rapid development in adopting Artificial Intelligence technologies due to their effective role in improving the efficiency and quality of internal auditing. This exploratory study aims to highlight the reality of using AI in selected Iraqi banks and to examine its impact on enhancing audit accuracy, reducing human errors, and enabling early detection of fraud and financial risks. Intelligent systems contribute to analyzing large volumes of financial data quickly and accurately, thereby supporting internal auditors in making more objective decisions. The findings of the exploratory study indicate that employing techniques such as machine learning and big data analytics improves audit planning, increases compliance with regulatory standards, and enhances transparency within banks. Moreover, Artificial Intelligence facilitates the shift from traditional auditing to continuous auditing, which positively affects overall institutional performance. Accordingly, the study recommends investing in technological infrastructure and training banking staff to ensure optimal utilization of these modern technologies.