A portion of this investment will be allocated to payments made directly to Google, while the majority will focus on internal initiatives that utilize Google's offerings, according to Steve Chase, vice chair of AI and innovation at KPMG, in an interview with Reuters. This initiative includes the development of AI agents and training programs to ensure the firm's workforce becomes adept in using the technology.
As Wall Street anticipates the technology sector to deliver returns that match the substantial capital being invested in AI, professional services firms have emerged as early beneficiaries, with large corporations seeking assistance from accounting and consulting firms to integrate AI into their operations and product lines.
"We firmly believe that the transition is moving from proof of concept and experimentation to scaling," Chase stated. "We think that professional services are undergoing the most significant transformation it has likely ever experienced."
He referenced a KPMG survey of business leaders, revealing that approximately 50% of the organizations surveyed plan to allocate $100 million towards AI initiatives within the next year, while around 20% intend to invest at least $250 million.
Chase noted that bookings for KPMG's services related to Google Cloud have increased tenfold over the past two years.
In response to client needs, KPMG is diversifying its partnerships with various cloud providers. In July 2023, the firm revealed a $2 billion investment over five years to enhance its AI and cloud services in collaboration with Microsoft.
Matt Renner, Google's president of revenue for its cloud division, informed Reuters that the company is focusing on collaborations with consulting firms as a key element of its cloud expansion strategy. The strong performance in the company's third-quarter earnings in October was partially attributed to a 35% increase in cloud sales.
Renner expressed his belief that the three leading cloud providers—Amazon, Microsoft, and Google—along with most professional services firms, are likely to experience significant growth together.
Chase did not disclose the total investment KPMG has made in its Google Cloud practice thus far, but noted that the recent investment was the largest direct commitment to Google to date.
He added that further announcements regarding additional investments in this sector are expected soon.