KPMG & Microsoft: $12B Growth Unleashed by AI Alliance
In a groundbreaking announcement on July 11, 2023, KPMG and Microsoft unveiled a pioneering agreement aimed at revolutionizing the landscape of professional services by placing Artificial Intelligence (AI) at the forefront of their operations. This extensive expansion of their global partnership seeks to modernize the workforce, ensure secure and reliable development, and expand the utilization of AI solutions across various industries and society as a whole.
Under this collaboration, KPMG has committed to investing multibillion dollars in Microsoft cloud and AI services over the next five years. This strategic investment is expected to unlock significant growth opportunities for KPMG, surpassing US$12 billion, and represents a remarkable milestone in the AI and professional services sector.
By leveraging Microsoft’s cloud capabilities and Azure OpenAI Service, KPMG aims to empower its global workforce of 265,000 professionals. The objective is to enhance the speed of analysis and allow more time for strategic advice, benefiting over 2,500 joint clients of KPMG and Microsoft in navigating the rapidly evolving AI landscape.
As part of the alliance, KPMG professionals will conduct pilot programs using Microsoft 365 Copilot and Azure OpenAI Service technologies with select business groups. This initiative is anticipated to expedite the development of digital solutions and enhance client engagements.
Furthermore, this collaboration will integrate data analytics, AI, and Azure Cognitive Services into KPMG’s audit process, enabling its 85,000 audit professionals to focus 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.
The landmark agreement between KPMG and Microsoft signifies a significant stride forward in the integration of AI within professional services. It promises to deliver innovative solutions and foster sustainable growth within the sector.
Microsoft’s AI Strategy
Microsoft’s AI strategy has evolved 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 made substantial investments in AI companies.
The AI industry has now become one of the most exciting and promising sectors, with the goal of having “an AI assistant for everyone” replacing Bill Gates’ initial vision of “a computer on every desk”. According to a study by Grandview Research, the global AI market is projected to experience an average annual growth rate of 37% through 2030, reaching a market value of $1.8 trillion by the end of the decade.
The recent surge in AI buzz can be attributed to ChatGPT. Microsoft’s initial investment of $1 billion in OpenAI, the owner of ChatGPT, on July 22, 2019, was followed by a subsequent investment of $10 billion on January 24 of this year. Additionally, on May 11, 2023, Microsoft made a strategic investment in Builder.ai, and on June 29, the Microsoft-backed AI startup Inflection secured $1.3 billion in funding from Nvidia and other investors.
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