KPMG Leads the AI Transformation: Insights from Global AI Head David Rowlands

LONDON, December 5, 2024 – KPMG, ​one of the four leading consulting firms, ​placed artificial intelligence (AI) at the forefront of its operations, marking ​a transformative change in the way the company and its clients approach the future ​of the company. David The Netherlands, KPMG’s global AI manager, appointed in December 2023, recently shared ​information with Business Insider on the company’s strategy ​and business ​obstacles to the ​adoption of AI. Their message is clear: companies need to go ​beyond ​single use cases and focus on integrating AI into ​their business models.

The case of reusability in ​AI

Rowlands stressed the importance of re-use in ​AI systems, warning against a narrow approach in case of single use. “At KPMG, we look forward to people going beyond use because a technology point, a case of ad hoc use, has not been ​a particularly effective business ​case,” he said. On ​the other hand, companies should give priority ​to integrating the CEW into their broader operational ​frameworks in order to unlock sustainable value. This holistic approach, Rowlands says, ensures a sustainable return to ​investment while ​addressing ​general ​scepticism about ​the immediate financial impact of AI.

The KPMG strategy is reinforced ​by substantial investments, including $2 billion for AI and cloud services in ​partnership with Microsoft, to generate ​$12 billion in revenue over five years. A more recent $100 ​million investment in Google Cloud, announced in November, is expected ​to boost growth ​by $1 billion. Rowlands noted that although the first ​ROI surveys were ambivalent ​and anecdotal data now suggest promising yields. “This time next year, Chiefs of Staff and Chiefs of ​Staff will be positive about the returns they receive,” he predicted.

Data as differentiator

According to Rowlands, another crucial challenge for ​companies ​is to manage and exploit data effectively. ​He stressed that organizations would be increasingly differentiated through the data they possessed. “This requires greater awareness of where your data is based, where it belongs, where it is generated, and how you keep it up to date,” he said. These considerations are essential as companies ​seek to unlock the full potential of AI.

Rowlands also ​highlighted the role of data ​in the next step in the evolution ​of IV: multi-active models. These systems, involving specialized agents of artificial intelligence who coordinate to achieve ​collective objectives, should address complex problems such as decarbonization. “This is where AI will start to have a big impact,” he explained, stressing the need for organizations ​to prepare their data infrastructure to remain competitive in ​this rapidly changing landscape.

Conversion

Like the ​IA restructuring industries, labour preparation becomes paramount. KPMG has ​integrated AI into ​all its accounting, ​tax ​and advisory activities, allowing employees to benefit ​from tools such as GPT and Copilot. Approximately 20% of the company’s total workforce already has ​Copilot ​licenses, allowing it to perform more effective tasks. “Everything ​they were doing, now they can do faster,” Rowlands said.

The company’s 24-hour training session in January 2024 illustrates their ​commitment to equip employees for the future promoted ​by the IA. The program focused on practical IA applications, data recovery and rapid engineering. ​Rowlands acknowledged that while AI will lead to job rotation, similar to the Internet revolution, ​it will not diminish the role of consultants. “We really don’t think about replacing jobs. It’s ​more about improving individuals ​and roles,” he said.

Overcoming barriers to AI adoption

Rowlands identified several changing client concerns about AI. Initially, ethical considerations, hallucinations and discussions were dominated by trust. However, over the past five months, efforts ​have been made to demonstrate the commercial ​value of AI and ​to allow for labour ​adoption. The ​next ​frontier, he said, ​revolves around differentiation and data protection. These challenges underscore the need for clear business cases to justify ​significant ​investment in AI.

Despite these obstacles, ​KPMG’s CEW ​initiatives are already delivering tangible ​benefits. For example, Copilot systems save about 40 minutes a week, which improves productivity and quality. “We are already seeing improvements in growth, quality and agility,” said Rowlands, adding that companies that adopt IA responsibly are more successful than those behind ​it.

With the professional services industry suffering from a “deep transformation effect”, Rowlands ​reaffirmed KPMG’s mission to deliver valuable results to customers. “Our consultants, as they ​have always done, will make increasing efforts to ensure that our ​clients achieve valuable results ​from our work,” he concluded.