KPMG Pressed Its Auditor To Pass on AI Cost Savings (ft.com)
(Friday February 06, 2026 @11:31AM (msmash)
from the irony dept.)
- Reference: 0180747850
- News link: https://slashdot.org/story/26/02/06/1632210/kpmg-pressed-its-auditor-to-pass-on-ai-cost-savings
- Source link: https://www.ft.com/content/c891c47c-b21f-4e0f-84b3-b80c794eff3d
An anonymous reader shares a report:
> KPMG, one of the world's largest auditors of public and private companies, [1]negotiated lower fees from its own accountant by arguing that AI will make it cheaper to do the work, according to people familiar with the matter. The Big Four firm told its auditor, Grant Thornton UK, it should pass on cost savings from the rollout of AI and threatened to find a new accountant if it did not agree to a significant fee reduction, the people said.
>
> The discussions last year came amid an industry-wide debate about the impact of new technology on audit firms' business and traditional pricing models. Firms have invested heavily in AI to speed up the planning of audits and automate routine tasks, but it is not yet clear if this will generate savings that are passed on to clients.
>
> Grant Thornton is auditor to KPMG International, the UK-based umbrella organisation that co-ordinates the work of KPMG's independent, locally owned partnerships around the world. Talks with Grant Thornton were led by Michaela Peisger, a longtime audit partner and executive from KPMG's German member firm, who became KPMG International's chief financial officer at the beginning of 2025.
[1] https://www.ft.com/content/c891c47c-b21f-4e0f-84b3-b80c794eff3d
> KPMG, one of the world's largest auditors of public and private companies, [1]negotiated lower fees from its own accountant by arguing that AI will make it cheaper to do the work, according to people familiar with the matter. The Big Four firm told its auditor, Grant Thornton UK, it should pass on cost savings from the rollout of AI and threatened to find a new accountant if it did not agree to a significant fee reduction, the people said.
>
> The discussions last year came amid an industry-wide debate about the impact of new technology on audit firms' business and traditional pricing models. Firms have invested heavily in AI to speed up the planning of audits and automate routine tasks, but it is not yet clear if this will generate savings that are passed on to clients.
>
> Grant Thornton is auditor to KPMG International, the UK-based umbrella organisation that co-ordinates the work of KPMG's independent, locally owned partnerships around the world. Talks with Grant Thornton were led by Michaela Peisger, a longtime audit partner and executive from KPMG's German member firm, who became KPMG International's chief financial officer at the beginning of 2025.
[1] https://www.ft.com/content/c891c47c-b21f-4e0f-84b3-b80c794eff3d
Goosing yourself, for the Gander. (Score:2)
by geekmux ( 1040042 )
> ..it should pass on cost savings from the rollout of AI and threatened to find a new accountant if it did not agree to a significant fee reduction..
I estimate KPMG customers pulling this same excuse against KPMG, by the end of this sentence.
Come to think of it, why do we even need human auditors at KPMG again?
Yes, KPMG. Be careful what you fuck others over for. You just might earn it.
Of course (Score:2)
How else is your consulting division going to sell A.I. to clients if your own audit figures don't back them up?