KPMG and Microsoft have announced an ambitious expansion of their longstanding global relationship, setting the stage for a transformative era in professional services. The collaboration between these industry leaders will reshape critical business areas, including workforce modernization, safe and secure development, and the application of Artificial Intelligence (AI) solutions.
With a multibillion-dollar commitment from KPMG in Microsoft cloud and AI services over the next five years, this partnership is projected to unlock significant growth opportunities, surpassing US$12 billion for KPMG. Read on to know how this alliance will drive innovation and shape the future of professional services.
Empowering KPMG’s global workforce with Microsoft cloud and AI capabilities
Under this expanded alliance, KPMG’s global workforce of 265,000 professionals will gain access to the cutting-edge capabilities of the Microsoft cloud and Azure OpenAI Service. By harnessing these powerful tools, KPMG professionals will be able to unleash their creativity, accelerate analysis, and dedicate more time to strategic advice. This empowerment will enable them to stay ahead in the rapidly evolving AI landscape and tackle the most complex business challenges faced by their clients.
Enhancing client engagements and employee experience
The collaboration between KPMG and Microsoft will supercharge client engagements, providing innovative solutions that address their specific needs. With over 2,500 joint clients, the expanded alliance will enable KPMG to deliver unparalleled value and stay at the forefront of industry trends.
Moreover, the partnership will enhance the employee experience within KPMG, promoting a responsible, trustworthy, and safe work environment. The combination of KPMG’s expertise and Microsoft’s advanced technologies will empower professionals to thrive and provide exceptional services to their clients.
As an early access partner for Microsoft 365 Copilot and Azure OpenAI Service, KPMG professionals will spearhead the pilot testing of these cutting-edge technologies. By leveraging their experience, insights, and sector expertise, KPMG will maximize the potential of these tools to enhance client engagements and accelerate the development of digital solutions.
Transforming audit, tax, and advisory services
The impact of this collaboration will be felt across KPMG’s core business areas, revolutionizing the audit, tax, and advisory services it offers.
- Audit: KPMG’s smart audit platform, KPMG Clara, will integrate data analytics, AI, and Azure Cognitive Services to enhance the audit process. With these advanced technologies, KPMG’s 85,000 audit professionals will be able to focus more on higher-risk areas, sector-specific risks, and challenges. This data-driven approach will benefit both stakeholders and capital markets, ensuring more accurate and insightful audits.
- Tax: By integrating Azure OpenAI Service and Microsoft Fabric into the KPMG Digital Gateway, KPMG will provide clients with a comprehensive suite of tax and legal technologies. This integration will enable clients to access their data seamlessly and adopt a holistic management approach to their tax functions. Additionally, the introduction of a generative-AI powered “virtual assistant” to create new service models will increase the efficiency of tax professionals. It can also help in revenue-generating opportunities, like product experience enhancements and knowledge management for complex tax laws.
- Advisory: KPMG will develop an AI-enabled application development and knowledge platform on Microsoft Azure. This platform will expedite the creation of specialized solutions for clients, enhancing their competitive advantage and profitability. By prioritizing ethics and security, KPMG will ensure that its offerings are not only innovative but also responsible and trustworthy.
- Environmental, Social, and Governance (ESG) initiatives: KPMG and Microsoft are committed to supporting businesses in their ESG agendas. Leveraging the success of the KPMG Circularity Tracker and ESG and climate data management solutions, which rely on Microsoft Cloud for Sustainability and Microsoft Azure, the partnership will help clients unify their data sources and make real-time value-add decisions. By collaborating on sustainability commitments, KPMG and Microsoft aim to create a positive impact on the environment and society.
- Social and community impact: Beyond their business goals, KPMG and Microsoft will explore joint opportunities to drive social and community impact on a global scale. By combining their resources and expertise, they will contribute to initiatives that promote positive change and address pressing societal challenges.
AI investment – a trend among the Big Four and beyond
This expanded alliance between KPMG and Microsoft is part of a broader trend among the Big Four professional services firms. Recognizing the transformative potential of cloud-based technologies and AI, these firms have made substantial investments to strengthen their audit, consulting, and tax businesses. Microsoft, with its suite of AI offerings, has emerged as a trusted partner for these industry leaders, providing the cutting-edge technologies needed to drive innovation and deliver exceptional client experiences.
PricewaterhouseCoopers (PwC) has unveiled plans to invest $1 billion in generative AI within its U.S. operations over three years. Deloitte, another member of the Big Four, has committed $1.4 billion to employee training, with a focus on AI and other technologies. Ernst & Young (EY) has dedicated $1 billion to enhance its audit technology capabilities, including AI, over the next four years. Accenture recently revealed a substantial investment of $3 billion over the next three years in its Data & AI practice to assist clients across various industries in accelerating the adoption of AI technology rapidly and responsibly.