KPMG
Generative AI is a class of AI models that can generate new data by learning patterns from existing data and generating human-like text based on the input provided. According to Lisa Daniels, KPMG U.S. vice chair of growth and strategy, the firm's innovation agenda centers around creating solutions that address challenges and opportunities in the marketplace while guiding clients to success.
To achieve this goal, Daniels said KPMG must be responsive to moments of change, which is why the firm makes generative AI available to both business support and customer-driven teams to help clients harness the benefits of this technology.
"Generative AI has the potential to transform enterprises, particularly in the area of knowledge work, and businesses will be able to uncover new opportunities, improve efficiency and productivity, gain a competitive advantage, and drive sustainable growth," said Daniels. "We are committed to helping our clients capture the tremendous value creation and growth opportunities presented by generative AI responsibly and securely."
Differences between practices
Daniels said that both KPMG's advisory and tax professionals use a GPT tool for tasks such as creating content, summarizing long documents, conducting research and assisting in code generation. She explained developments within the platform are underway while the firm proceeds to put this technology in the hands of every KPMG employee and ensure their data, as well as their clients, are being protected.
As a part of the firm's AI Innovation Initiative with
"The advisory practice is also rebuilding its client delivery platform on Azure OpenAI to embed generative AI capabilities," said Daniels. "The platform houses KPMG's proprietary methods and client solutions, and a range of tools for tasks such as project management, modeling and collaboration."
Advantages for clients and employees
According to Ron Walker, KPMG U.S. principal in advisory and finance transformation, the firm will fill the benefits of generative AI in multiple areas. He said generative AI allows businesses and clients to make data-driven decisions, enhance risk management practices, and improve the overall client experience in the financial domain by leveraging its data analysis, pattern recognition and personalized interactions.
When it comes to financial analysis and forecasting, generative AI can analyze large volumes of financial data, market trends and economic indicators. It can also uncover patterns, correlations and insights that may not be immediately apparent to human analysts. Generative AI models can generate financial forecasts, helping clients make decisions regarding investments, budgeting and financial planning.
"By analyzing historical data and real-time information, generative AI models can detect fraudulent activities, unauthorized access attempts and potential security breaches," said Walker. "This proactive approach helps businesses and clients prevent fraud, minimize losses and strengthen their security measures."
In terms of conversational finance, generative AI-powered conversational interfaces can provide personalized and contextually relevant financial guidance to clients. These interfaces can answer client inquiries, assist with account management, provide information on financial products, and even offer personalized financial advice. Walker said generative AI can mimic natural and human-like conversations even better than before, enhancing the client experience and improving access to financial services.
Beyond those areas, Walker added that AI has the potential to assist with a wide range of important issues across various domains such as software development, health care, ESG, cybersecurity and threat detection, but he believes their areas of influence will expand even further as the technology keeps improving.
"KPMG continuously evaluates the market for inorganic growth options and investment opportunities that will expand our capabilities and enhance our ability to serve clients," said KPMG U.S. consulting leader Steve Chase. "As it relates to generative AI, it's likely that our acquisition approach will include investments in a diverse ecosystem of companies, such as our recent investment in Cranium, to fill solution gaps or further enable the adoption of emerging technologies."
In its press release, KPMG said it would use its existing partnership with AI-oriented companies to grow new client solutions and advance its acquisition strategy related to generative AI. Chase said the firm's
"Each of our strategic alliances is looking to build on its existing AI capabilities and take advantage of the market disruption from generative AI," said Chase. "Looking ahead, I'm excited about the future opportunities these investments will bring for our firm, our alliance partners, and most importantly, our clients."
A month ago, KPMG Studio, the firm's internal incubator, also
Challenges in implementation and recommendations
According to Daniels, successful implementation and integration of generative AI is going to require significant training and upskilling programs. In a recent KPMG
Additionally, 65% of executives predicted that generative AI would have a high impact on their organization in the next three to five years, and nearly the same percentage (60%) indicated they were still a year or two away from implementing their first generative AI solution. As a result, for leaders' transition to this technology to be as smooth as possible, Chase said they must set a clear strategy that quickly moves their organization from experimentation into industrialization while prioritizing responsible AI.
During this developmental phase, he added that a center of excellence should be built to ensure the organization remains flexible in the face of change and complexity. This will require making material investments as early as possible, such as in talent and skills development, and executives will need to provide training programs and resources for existing employees to work effectively with generative AI technologies.
Should executives manage to follow all of those recommendations, Chase believes generative AI could become one of the most disruptive technologies the field has seen so far.
"This will enable them to make informed decisions, confidently communicate the value of generative AI, and effectively plan for its integration with their existing business models and other emerging technologies," he said. "These senior leaders should foster a culture that embraces experimentation and encourages employees to explore new ideas, test generative AI solutions and share their learnings."
