In April 2025, KPMG unveiled a significant enhancement to its global smart audit platform, KPMG Clara, by integrating advanced AI agents. This development aims to transform the auditing landscape for over 95,000 auditors worldwide, streamlining processes and enhancing audit quality.
The Evolution of KPMG Clara KPMG Clara has been at the forefront of digital auditing, leveraging technology to improve efficiency and accuracy. The recent integration of AI agents marks a pivotal advancement, enabling the platform to automate routine tasks, provide data-driven insights, and highlight high-risk areas for auditors. These agents can autonomously check expenses, identify unrecognized liabilities, and analyze provisions, thereby supporting auditors in achieving more consistent and high-quality audit outcomes. A notable addition is the Financial Report Analyzer (FRA), an AI engine designed to assist auditors in completing legally required disclosure checklists. This tool exemplifies KPMG’s commitment to integrating AI into various facets of the audit process, with plans to extend its application to control test procedures and financial statement analyses in the near future. Emphasizing Human-AI Collaboration While AI agents enhance efficiency, KPMG underscores the irreplaceable value of human judgment in auditing. Christian Sailer, Member of the Managing Board and Divisional Director Audit at KPMG AG, emphasized that the integration aims for effective
interaction between technology and people, leading to better decisions and increased trust in the capital market. This approach aligns with KPMG’s Trusted AI framework, which ensures that AI deployment maintains a human-in-the-loop model, preserving the quality and accuracy of audits. Executive Insights Christian Sailer, Member of the Managing Board and Divisional Director Audit at KPMG AG, emphasized the collaborative nature of this integration: “Our AI agents in KPMG Clara quickly provide in-depth insights into the audit material, reduce client queries, and relieve audit teams of tasks such as data collection and aggregation. The professional skepticism and years of experience of our audit teams are still important and cannot be replaced by AI. Rather, it’s about effective interaction between technology and people — for better decisions, higher quality, and therefore more trust in the capital market.”
Sebastian Stöckle, Partner and Chief Technology Officer for Audit at KPMG in Germany, highlighted the strategic vision: “The integration of AI agents is part of a long-term innovation strategy for our audit applications. It follows the introduction of AI Transaction Scoring a few years ago and the integration of an AI chatbot on our KPMG Clara AI platform. This enables natural language interaction with Generative AI and the connected proprietary knowledge bases for audit methodology and standards.” Larry Bradley, Global Head of Audit at KPMG International, stated:KPMG “With seamless access to trusted generative AI capabilities within our audit workflow, 90,000 KPMG auditors globally will be empowered to deliver quality audits. KPMG Clara AI can not only free up resources to spend more time on the areas of highest risk, but can directly help our teams execute more effectively as we carry out our responsibilities to protect the capital markets.”
Thomas Mackenzie, KPMG U.S. and Global Audit Chief Technology Officer, added: “Our Trusted AI framework underpins everything we do with AI in the audit. KPMG auditors are trained on how to effectively use AI with a human-in-the-loop mindset to help maintain quality, accuracy and professional skepticism.” Market Reaction The integration of AI agents into KPMG Clara AI has been met with interest and cautious optimism in the market. While the advancements promise increased efficiency and accuracy in audits, industry experts note that these benefits may not immediately translate into reduced audit fees due to the significant investments required for developing and maintaining AI technologies. The evolution of auditing from manual transaction checks to AI-driven analysis has improved the effectiveness and depth of audits, enhancing risk assessment and data accuracy. However, AI’s benefits are more related to efficiency and thoroughness rather than cost reductions. As such, audit fees are unlikely to decrease due to the high costs associated with developing and maintaining AI technology. Despite these technological
advancements, there remains a degree of caution in the industry regarding data reliability. The audit industry is also facing reduced demand for certain job roles due to AI, although new opportunities in areas like ESG (Environmental, Social, and Governance) and cybersecurity are emerging. Despite AI’s capabilities, human judgment remains essential in auditing complex business decisions, ensuring AI complements rather than replaces human auditors. Moreover, the broader consulting industry is witnessing a surge in AI adoption. Firms like McKinsey, BCG, Deloitte, PwC, and KPMG are integrating AI tools to enhance internal processes and client services. For instance, McKinsey’s proprietary chatbot, Lilli, and BCG’s tools like Deckster and GENE are reshaping consulting workflows. However, this rapid adoption also raises concerns about job security and the evolving role of human consultants. AI in Auditing: Efficiency Gains Without Fee Reductions The integration of artificial intelligence (AI) into auditing processes has revolutionized the field, enabling auditors to analyze entire datasets swiftly and identify anomalies with greater precision. This technological advancement has shifted the focus from traditional
sample-based testing to comprehensive risk assessments, enhancing the depth and effectiveness of audits. Cath Burnet, Head of Audit at KPMG UK, highlights this transformation: “We’ve moved away from quite narrow sample testing to [finding] which are the transactions that are much likely to be higher risk and that we really need to understand,” she explains. “That is better both for our teams but it’s also a better conversation with the companies.” Despite these efficiency gains, audit fees are unlikely to decrease. The development and maintenance of AI technologies entail significant costs, including investments in cloud infrastructure, cybersecurity, and data management. Clients, however, value the speed and thoroughness that AI brings to audits. A survey by Source Global Research indicates that companies prioritize faster audit completion over fee reductions, appreciating the reduced time required to produce information for auditors. While AI automates routine tasks, human judgment remains crucial in auditing complex business decisions. The technology serves as a tool
to enhance auditors’ capabilities, allowing them to focus on areas requiring professional skepticism and expertise. The adoption of AI in auditing also prompts a reevaluation of workforce roles. While some traditional positions may diminish, new opportunities emerge in areas like Environmental, Social, and Governance (ESG) reporting and cybersecurity assurance. In summary, AI enhances the efficiency and quality of audits but does not necessarily lead to reduced fees. The technology complements human auditors, enabling them to deliver more insightful and timely audits while adapting to the evolving demands of the profession.
A Broader Industry Movement KPMG’s initiative reflects a broader trend among the Big Four accounting firms, all investing heavily in AI to revolutionize their services. Deloitte and EY have introduced agentic AI platforms, such as Deloitte’s Zora AI and EY’s EY.ai Agentic Platform, developed in collaboration with Nvidia. These platforms aim to enhance productivity, reduce costs, and transform business operations. KPMG’s integration of AI agents into Clara positions the firm competitively within this evolving landscape, demonstrating its commitment to leveraging technology for improved audit quality and efficiency. Big Four Firms Embrace Agentic AI to Transform Operations KPMG’s advancements with Clara AI are part of a broader trend among the Big Four accounting firms — Deloitte, EY, PwC, and KPMG — towards embracing agentic AI to revolutionize their operations. ● Deloitte: Introduced Zora AI, a platform developed in collaboration with Nvidia, designed to serve as a smart digital workforce. Zora AI assists in tasks like sales data analysis, invoice management, and procurement, aiming to enhance productivity and reduce operational costs.
● EY: Launched the EY.ai Agentic Platform, focusing initially on tax compliance. The firm plans to deploy 150 digital tax officers to manage tasks ranging from document review to indirect tax archives, aiming to redefine millions of tax processes annually. ● PwC: Unveiled Agent OS, an AI orchestration system that acts as a control center for intelligent agents, facilitating their collaboration across complex systems like SAP and Oracle. The platform has already been deployed in various sectors, leading to significant efficiency gains. These initiatives underscore a collective move towards integrating AI agents that can autonomously perform tasks, thereby transforming traditional workflows and enhancing service delivery across the professional services industry. Looking Ahead: The Future of AI in Auditing
KPMG plans to continue expanding the capabilities of Clara AI, with additional AI agents set to be deployed over the next 12 months. These enhancements will focus on controls testing procedures, financial statement analysis, and other critical audit functions. The integration of AI into auditing processes signifies a transformative shift in the profession, promising increased efficiency, improved risk assessment, and enhanced audit quality. As KPMG and other industry leaders continue to innovate, the auditing landscape is poised for significant evolution, driven by the synergy of human expertise and artificial intelligence.
