KPMG to expand ties with Microsoft, will spend $2 billion in AI, cloud services
KPMG plans to spend $2 billion on AI and cloud services through an expanded partnership with Microsoft, aiming to incorporate AI into its core services. This move is in response to a slowdown in advisory deals and a challenging economic environment
In a bid to include latest technologies like AI and cloud services, KPMG, will spend $2 billion on the same through an expanded partnership with Microsoft, the accounting firm said on Tuesday.
The move has come come after Accenture is heading towards the latest technologies to weather a slowdown in advisory deals. KPMG will incorporate AI into its core audit, tax and advisory services for clients as part of the five-year partnership. The expanded partnership will help support KPMG's clients and 2,500 customers serviced jointly by KPMG and Microsoft.
Due to falling number of customers, professional services firms are facing a slowdown in their business. Other reason is hold off on consulting and transformation projects to save costs in a challenging macro economic environment.
KPMG-Microsoft collaboration
The collaboration between KPMG and Microsoft includes former's multibillion dollar commitment in Microsoft cloud and AI services over the next five years. The expanded alliance will enhance KPMG client engagements and supercharge the employee experience in a way that is responsible, trustworthy and safe.
KPMG will use Microsoft cloud and Azure OpenAI Service capabilities for its efficient operations and better services for its clients, including more than 2,500 KPMG and Microsoft joint clients.
The company will also have the access of Microsoft 365 Copilot and Azure OpenAI Services.
"This expansion of our global alliance builds on the combined power of two world-class organizations that share a common set of core values, working together to responsibly use cutting-edge cloud and AI technologies. KPMG is embracing the future, and we believe that AI is key to unlocking sustainable growth in a way that will build a better future for our people, our clients and society," said Bill Thomas, Global Chairman and CEO, KPMG International in his press release.
"We have a real opportunity to apply this next generation of AI to help transform every industry, including professional services. Our expanded partnership with KPMG will bring together AI innovation across the Microsoft Cloud with KPMG's tax, audit and advisory expertise to empower its employees and unlock insights for its customers," said Satya Nadella, Chairman and CEO, Microsoft.
Enhanced KPMG operations after the inclusion of AI and cloud services
Audit: The inclusion of latest technologies in its services will provide the much needed up-gradation to KPMG smart audit platform KPMG Clara.
Tax: To streamline its tax and legall services, KPMG will integrate Azure Open AI Service wit Microsoft Fabric into KPMG Digital Gateway. Other than this, KPMG firms will also bring a generative-AI powered ‘virtual assistant’ onboard to create new client service models to help tax professionals become more efficient.
Advisory: Developing an AI-enabled application development and knowledge platform on Microsoft Azure will expedite the creation of specialized solutions for clients. The company is already working to develop this service with AI in a joint engagement with Coca-Cola EuroPacific Partners (CCEP).
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First Published:12 Jul 2023, 07:25 AM IST
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