Friday, May 24, 2024

KPMG and Microsoft Launch Multibillion-Dollar AI Partnership, Unlocking Over US$12 Billion Growth Opportunity

In a landmark agreement announced on July 11, 2023, KPMG and Microsoft have pledged to reshape the landscape of professional services by placing Artificial Intelligence (AI) at the forefront of their operations. This significant expansion of their global relationship aims to modernize the workforce, ensure safe and secure development, and broaden the use of AI solutions across industries and society.

The collaboration involves a multibillion-dollar commitment from KPMG in Microsoft cloud and AI services over the next five years. This strategic investment is projected to unlock an incremental growth opportunity for KPMG exceeding US$12 billion, marking a significant milestone in the AI and professional services sector.

Microsoft’s cloud and Azure OpenAI Service capabilities will be leveraged to empower KPMG’s global workforce of 265,000. The aim is to enhance the speed of analysis and allow more time for strategic advice, helping over 2,500 joint clients of KPMG and Microsoft navigate the rapidly evolving AI landscape.

As part of the alliance, KPMG professionals will pilot Microsoft 365 Copilot and Azure OpenAI Service technologies with select business groups. This initiative is expected to accelerate digital solution development and enhance client engagements.

The collaboration will also infuse data analytics, AI, and Azure Cognitive Services into KPMG’s audit process, enabling its 85,000 audit professionals to focus more on higher-risk areas of the audit, sector-specific risks, and challenges. In the tax sector, the integration of Azure OpenAI Service and Microsoft Fabric into KPMG Digital Gateway will provide clients with more integrated and transparent access to their data.

This landmark agreement between KPMG and Microsoft signifies a major step forward in the integration of AI in professional services, promising to deliver innovative solutions and drive sustainable growth in the sector.

Microsoft’s AI Strategy

Microsoft’s AI strategy has been evolving since 2017 when the company shifted its vision from being mobile-first to AI-first, while maintaining its cloud-first approach. Since then, Microsoft has accelerated the integration of AI into its products and invested heavily in AI companies.

AI is now one of the hottest industries, with Bill Gates’ dream of “a computer on every desk” shifting to “everyone has an AI assistant”. According to a study by Grandview Research, the global AI market could grow by an average of 37% annually through 2030, becoming a $1.8 trillion market at the end of the decade.

The AI buzz seems to have been triggered by ChatGPT. Microsoft first invested $1 billion into ChatGPT owner OpenAI on July 22, 2019. This year, on January 24, Microsoft invested $10 billion in ChatGPT maker OpenAI. In addition, on May 11, 2023, Microsoft made a strategic investment into, and on June 29, Microsoft-backed AI startup Inflection raised $1.3 billion from Nvidia and others.

Image source: Shutterstock

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