The race is on! Accounting and consulting firms are aggressively integrating Artificial Intelligence (AI) to gain a crucial competitive edge. This isn't just about staying current; it's about fundamentally reshaping how these firms operate, and the stakes are higher than ever.
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Following the economic shifts triggered by Donald Trump's trade policies, KPMG swiftly deployed a tariff calculation model. This model, developed in record time, reportedly saved clients "hundreds of millions of dollars." Stephen Chase, KPMG's global head of AI and digital innovation, highlights that this rapid response was only possible due to over a decade of sustained investment in AI technology.
Being the first to offer advice has become the new competitive advantage for these firms, especially for large, established companies competing with agile, AI-driven startups. The technology is poised to revolutionize how professional service firms work, from analyzing massive datasets during audits to drafting consulting documents in a matter of minutes.
KPMG demonstrated its AI capabilities to win an audit bid, showcasing its AI audit platform, Clara. This platform can process the same amount of information faster and with fewer people than traditional methods.
But here's where it gets controversial...
Smaller firms are also reaping the benefits. A study by Xero and the Centre for Economics and Business Research found that nearly half of UK firms with a turnover of up to £500 million reported a rise in productivity from using AI. This is equivalent to reclaiming almost half of a 40-hour work week.
According to a study by the Wharton School of the University of Pennsylvania, about half of finance and accounting professionals now use AI daily, a significant increase from 33% the previous year. Dhiren Rawal, managing director at Alvarez & Marsal, notes that the efficiency gains are real, though not always consistent. He emphasizes that the true differentiation lies in how well the technology is applied.
Consultants are already using AI to test new scenarios, extract figures, and draft complex materials in minutes. Rawal adds that AI tools are surfacing patterns in financial and operational data that would have taken days to uncover manually. In restructuring, they can classify and compare thousands of contracts within hours.
He points out that the most significant impact will come from integrating AI safely and intelligently into complex workflows. This includes strengthening data foundations, establishing clear accountability, and ensuring that people understand both the strengths and limitations of the tools they use.
KPMG's experiments show that AI productivity gains typically range between 10% and 15%, and up to 80% for specific tasks.
And this is the part most people miss...
However, the pace of AI adoption varies among global firms, particularly due to the structure of separate partnerships operating under a shared brand. Christian Stender, global head of AI for tax and legal at KPMG International, admits that adoption rates can vary significantly between countries, potentially influenced by cultural differences. Chase adds that partners tend to use AI less than employees.
Jonathan Keane, strategy and consulting lead at Accenture, argues that gains come when companies use AI to redesign processes and rethink entire business domains. This requires clean, well-governed data, secure systems, and people who understand how to work alongside AI.
For KPMG's Chase, the focus has shifted from mere productivity to the crucial question of return on investment (ROI). He emphasizes the pressure to deliver ROI, declaring that "This is the year of ROI."
What do you think? Are you seeing these changes in your industry? Do you agree that the focus should be on ROI, or are there other critical factors? Share your thoughts in the comments below!
