good morning.
KPMG is betting big on generative AI Professional services firms are investing at least $2 billion in Microsoft’s cloud and generative AI services over the next five years, which could also lead to more jobs.
“The speed of change and innovation today is absolutely amazing,” KPMG US Chairman and CEO Paul Knopp told me. “Over the next few years, he believes he can create $12 billion in additional revenue opportunities around the world.” Opportunities include cybersecurity solutions for cloud migration and optimizing business models. Knopf says it could come from, for example, the innovative application of
KPMG has been an alliance partner with Microsoft for more than 20 years, he said. “We have seen an acceleration of activity around both generative AI and the cloud, and have been talking to them about what we can do together in the market,” explains Knopp. “So our idea is to jointly develop relevant and critical solutions for all three businesses – Audit, Tax and Advisor – and bring them to market as quickly as possible.”
To achieve this, KPMG’s 265,000 global employees will use the capabilities of the Microsoft Cloud and Azure OpenAI Service. But first, employees will pilot the technology with selected business groups across the organization, and “responsible, ethical and appropriate protocols” will be developed “around technology along with governance,” he said. .
How will generative AI be used in tax functions? “The idea is to use our data and insights in combination with all the regulations and laws that exist out there to create a ChatGPT type assistant. to create something similar to ,” Knopp explains. Customers can use the tool to inform their tax operations and make their organizations more efficient in the future, he said.
With a large language model being developed, KPMG “uses its own information in its own secure environment to deliver such rich content and functionality to its clients,” Knopp said. .
“Creating a new future with us”
Over the past few months, the tremendous acceleration of generative AI has been called hype by both proponents and opponents. What made Knopf adopt this technology?
“We are already seeing the power of generative AI when it is placed in a safe and secure environment and developed with responsible protocols and techniques,” he explains. “From conversations with CEOs, they see generative AI as a top priority.”
Knopf told me later this month, KPMG will release a survey of 200 U.S. executives involved in generative AI decision-making in organizations that will generate $1 billion in revenue. Three-quarters said it will be the most important emerging technology impacting their business over the next 18 months. And 80% said it would disrupt their industry.
We asked Knopf how the rise in generative AI applications at KPMG will affect the demand for talent.
“We believe this is an opportunity to solve the talent shortage in today’s market,” he says. “Companies and our own organizations will need even more people in the future thanks to generative AI. Data to accompany new solutions we offer our clients. He will need even more scientists.” he says. And generative AI will enable employees to be more skilled and more productive, he says. “We believe generative AI will create a new future for us and many other companies over the next few years.”
And KPMG is doubling down on that bet.
Cheryl Estrada
sheryl.estrada@fortune.com
big deal
Morgan Stanley’s E-Trade has released data from its monthly sector rotation survey. The top three sectors in May and June were telecommunications services, utilities and information technology. The results are based on the assumed net percent buying and selling behavior of the trading platform’s customers for the stocks that make up the S&P 500 sectors. According to the report, both telecommunications services and public works activity declined between May and June, and changes in information technology were minimal.
get deeper
A new report, “The Long-Term Business Case for Enterprise Purpose,” published in The Wharton’s Business Journal, finds new research by Associate Dean Witold Henis finds that business leaders either value themselves or create value. We are exploring the premise that there is no need to choose . At Wharton, he is also a faculty member of the ESG initiative and a director. “There has been a great deal of debate about whether companies should maximize shareholder value or focus on broader objectives, but these two objectives are not necessarily in conflict. You don’t have to choose,” Henis says.
Leader board
Scott Lewis He has been appointed CFO of Hanes Brands (NYSE: HBI), a global marketer of branded everyday clothing, effective immediately. Lewis will also continue in his role as Chief Accounting Officer, which he has held since 2015. Mr. Lewis is a veteran of Haines Brands where he worked for 17 years. He served as Interim CFO from March 2023 to present and from January 2020 to April 2021. Prior to joining HanesBrands, he worked at KPMG as Senior Manager of Audit and Advisory.
Tim StoneAppointed as CFO of semiconductor maker GlobalFoundries (Nasdaq: GFS) in May 2023, he will no longer be responsible for his duties as CFO. Stone was supposed to succeed David Reader, who joined the company as CFO in August 2020, but Stone left the company on July 11. Rieder will remain on as CFO until the end of the year to assist in the selection of a new chief financial officer. Stone brings his 20 years of experience building Amazon’s global business in senior financial positions, including his CFO of the AWS and Device businesses, and his CFO of public companies Ford Motor and Snap. I have. He until recently served as his CFO for a private AI software company. GlobalFoundries has not announced a reason for Stone’s departure.
tucked in ear
“I never thought I was the right person for this job.”
“J.P. Morgan CEO Jamie Dimon said in a 45-minute interview. economist to shut out rumors that he plans to run for president of the United States
