KPMG advances AI integration in KPMG Clara smart audit platform

Highlights:

• AI Agents to automate tasks and enhance decision-making, include substantive procedures
• Financial Report Analyzer AI engine supports auditors’ ability to complete disclosure checklists
• Upgrades are the next phase of journey towards an AI-enabled and people-powered audit approach, enhancing quality and driving deeper insights while maintaining a human-in-the-loop

The AI agents deployed in this announcement are designed to support standardizing and automating various aspects of the audit process and include substantive procedures such as expense vouching, search for unrecorded liabilities and accrued expenses.

These upgrades also coincide with the release of a Financial Report Analyzer (FRA) AI engine, which provides AI-generated output to enable auditors to complete the required disclosure checklists and mark the next phase of our accelerated effort to deliver an AI-enabled, people-powered audit experience.

Additional AI agents will be deployed over the next 12 months and integrated into controls testing procedures, financial statement analysis and more.

The AI agents deployed in this release are designed to:

• Automate routine tasks: AI agents can handle repetitive and time-consuming tasks, such as data analysis and document review.
• Support decision-making: AI agents provide auditors with insights and recommendations based on data analysis, helping them make informed decisions and improve audit quality; and
• Help auditors focus on high-risk areas: With AI handling routine tasks, auditors can dedicate more time to high-risk areas and sector-specific challenges, ensuring that audits are more comprehensive and targeted.

We are committed to always enhancing audit quality. Our approach focuses on embedding AI to handle data-intensive tasks, while reinforcing that our auditors are in control of the decision-making process to maintain quality, accuracy and professional skepticism.

KPMG's cross-functional commitment to AI delivery emphasizes a collaborative approach that integrates diverse expertise across various teams to develop innovative solutions that enhance decision-making and drive significant business transformation for clients.

In addition, KPMG Digital Gateway Gen AI is a cloud-based platform designed to transform global tax operations. This leading digital solution helps tax professionals streamline data integration, deploy innovative AI assistants and collaborate seamlessly across regions — accessible to multinational users anywhere. It allows you to automate routine tasks and simplify complex tax processes including managing compliance, mitigating risk, navigating controversies and handling transactions — freeing your tax team to focus on strategic initiatives. 

Within KPMG Advisory, KPMG Velocity — an AI-enabled platform for change launching later this year — will be used by KPMG professionals on client transformation projects to design and execute smarter and faster transformation journeys.  Whether growing, merging or modernizing organizations will have the insight,  guidance and pre-configured tools to build a trusted digital foundation.

These platforms and the deployment of new technologies are part of KPMG’s ongoing effort to deliver quality and a better experience through our Trusted AI framework, which underpins everything we do.

Today’s announcement builds on: 

• In December 2024, KPMG released the Global AI in finance report looking at how companies are rolling out AI across wider areas of finance, including accounting, financial planning, treasury management, risk management and tax management – showing AI is truly a global phenomenon, and it is being adopted by finance teams across the world.
• In July 2024, KPMG announced the integration of GenAI directly into KPMG Clara for 90,000 auditors around the globe. The embedded AI capabilities interact directly with audit engagement documentation and our audit methodology and help teams refine risk assessments, develop substantive testing procedures, enhance audit documentation and more.
• In April 2024, KPMG began deploying Copilot for Microsoft 365 to Audit partners and professionals. Engagement teams are already leveraging Copilot, along with KPMG Clara AI - chat, to transform the walkthrough experience by generating process narratives and flowcharts based on meetings with clients.

To learn more about KPMG and our Trusted AI capabilities, visit www.kpmg.com or kpmg.com/trusted-ai.

KPMG is a global organization of independent professional services firms providing Audit, Tax and Advisory services. KPMG is the brand under which the member firms of KPMG International Limited (“KPMG International”) operate and provide professional services. “KPMG” is used to refer to individual member firms within the KPMG organization or to one or more member firms collectively.

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KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients.

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