KPMG Seeks to 'Reshape' Services with $2 Billion Investment in Microsoft AI Stack
KPMG’s Microsoft Alliance lead discusses the new partnership with Channel Futures.
July 14, 2023
JLStock/Shutterstock
Channel Futures: Were you surprised at how quickly things took off in January?
KPMG’s Cherie Gartner (pictured above): Even if you look back from two months ago until now, it has changed. It’s changing every single day at such a rapid clip. And when you look at Microsoft, and what they announced in May at the Build conference with Microsoft Fabric, which integrates [new and existing components from PowerBI, Azure Synapse Azure and Azure Data Factory] into this one data platform, and then you look at the extensions with Copilot, it’s amazing.
And now, when you look at the generative AI component with that Azure OpenAI Service, it just explodes even further. You can ingest that data, or that ESG transparency reporting, and leverage the tools and technology now from the Azure Open AI Service to maximize what you’re consuming. And then you’re able to analyze it and provide the different insights.
CF: How much has AI changed how your tax advisors do their jobs and interact with their clients?
CG: I don’t have a number per se to give, but I would say that it allows our professionals to provide the advisory service and guidance based on looking at the data being analyzed more in real-time.
CF: Are there any concerns internally about how the technology will be used to reduce jobs or positions?
CG: It’s a fair question because a lot of individuals or organizations tend to ask whether AI will replace roles. But it’s not around replacing roles; it’s driving the enhancement and the empowerment around how the team members can leverage this technology. It’s not about replacing jobs; it’s about how you gain more productivity through enhancement and empowerment. And that’s what we’re seeing. And then there’s the whole training element around leveraging AI. That’s another big part of what skills you need to be able to leverage the technology further.
How have you handled the training portion?
CG: We’re in the throes of developing that training right now.
CF: In areas in which AI is in use, has it enhanced some of the functions people do?
CG: It provides them more of an opportunity to look at how they drive innovation. For example, in Australia, we released [the private preview of] KymChat, which takes the ChatGPT-type functionality and embeds some of our quality risk management manuals into the tool. It allows our employees to ask a query and have an immediate response that directly references the manual. When you take that, and you put that into the hands of auditors, the auditors can quickly go directly to that source and then can provide the right insights leveraging that information. It absolutely has made a tremendous difference. And it’s all within our own environment, so you have it protected and secured, and we are able to make that more scalable.
CF: Where are you with in terms of the progression of training and delivery of these services?
CG: It’s a mixture. With how fast this technology is advancing, we have so many different things that we are working on directly with clients, with assessments on how they can leverage generative AI and what that means for their organizations. Also, the guardrails, the responsible AI framework, and the different areas around that framework need to be embedded. Every organization and industry are at a somewhat different maturity curve. Even with us from a KPMG standpoint and all the things we are doing internally, there are absolute plans and a road map, but there are different horizons.
CF: How would you describe the demand for clients to use AI, and what are they looking to do?
CG: The demand right now, when you look at generative AI and AI, it’s exploding. Demand is massive because organizations can look at how they gain insights faster, how they increase their time to market and the efficiency levels they can gain and which areas they can streamline.
CF: Who within organizations generally leads these efforts?
CG: It’s all over. You have your chief information officers looking at how they leverage the technology and your chief digital officers looking at how you look at innovation, leveraging this technology. Your CFO is looking at how to streamline their supply chain operations to drive more productivity and streamline areas to increase output. But then you can have the [chief human resources officer] wanting to increase their base by looking at different resource criteria that can help them look at their recruitment efforts. So, every single line of business is looking at generative AI and how it can help them.
CF: How much focus is there on cybersecurity?
CG: We have managed detect and response solution areas that we are embedding already. When you look at our KPMG portfolio, we have our Connected, Powered, Trust and Elevate solution areas, each with an element of Microsoft technology. When you extend that to audit, our KPMG Clara smart platform for audit is all built on Azure. And then when you look at our Tax Digital Gateway, that’s also built on Azure and the Azure OpenAI service and Azure Cognitive Services. All of these things are interwoven and embedded with Microsoft technology.
CF: How much focus is there on cybersecurity?
CG: We have managed detect and response solution areas that we are embedding already. When you look at our KPMG portfolio, we have our Connected, Powered, Trust and Elevate solution areas, each with an element of Microsoft technology. When you extend that to audit, our KPMG Clara smart platform for audit is all built on Azure. And then when you look at our Tax Digital Gateway, that’s also built on Azure and the Azure OpenAI service and Azure Cognitive Services. All of these things are interwoven and embedded with Microsoft technology.
KPMG seeks to “reshape” the professional services it offers by committing $2 billion to Microsoft AI offerings. The expansion of the KPMG-Microsoft 13-year alliance, announced this week, calls for them to collaborate on delivering workforce modernization, secure development and responsible use of AI.
The companies are not committing exclusively to each other, but KPMG is making a substantial bet on Microsoft’s artificial intelligence capabilities. KPMG has 2,500 tax, audit, business and IT advisory clients and is among the earliest partners to participate in the Microsoft 365 Copilot and Azure OpenAI Service early access programs.
When Microsoft announced the release of Azure OpenAI Service in January, the company showcased KPMG’s use of the service to gather efficiencies in its Tax Environmental, Social and Governance (ESG) services by helping to reconcile data relationships and predict tax payments.
KPMG expects the Microsoft AI alliance will generate roughly $12 billion in revenue over the next several years through the delivery of cybersecurity services, cloud migration and workforce automation applications that use generative AI.
“Some of the solutions are already under development, and some are in nascent stages,” CEO Paul Knopp told Bloomberg. “But we’re really excited about the power of that partnership where we can bring to market in the future.”
KPMG-Microsoft AI Partnership
Cherie Gartner, who joined KPMG in September 2022 as its Microsoft global lead partner executive, told Channel Futures that everything came together quickly.
Channel Futures: What was the catalyst for this major investment?
KPMG’s Cherie Gartner
Cherie Gartner: I joined KPMG 10 months ago, and I have led ecosystems in the past with other organizations. One of the main reasons I joined KPMG was to take our relationship with Microsoft to the next level based on where technology and innovation is headed. It was a pivotal time because we at KPMG have been doing responsible AI for quite some time — for around 10 years. And we have the AI framework that we use every day.
But when Microsoft further enhanced its relationship with OpenAI with its $10 billion investment, it woke up the entire industry. Because when you look at the embedded nature of Microsoft technology and where that extends from the applications through what they’re driving forward with Copilot and other things, it’s just a monumental time for many industries to be able to leverage this technology.
Read the remainder of our Microsoft AI Q&A with Gartner in the slideshow above.
Want to contact the author directly about this story? Have ideas for a follow-up article? Email Jeffrey Schwartz or connect with him on LinkedIn. |
About the Author(s)
You May Also Like