KPMG says new audit tech will cut repetitive work, boost judgment

KPMG is promising auditors that technology will take over the grind, not the call on judgment. The firm says it is introducing new tools that will free people from repetitive work so they can spend more time on high-judgment audit areas, a shift that could change what junior staff do every day and what managers are expected to review.

The mechanics matter. KPMG says its audit is moving toward a more automated, data-driven model, with proprietary tools for document data extraction and validation. Its Audit Chat GenAI tool, built on Azure OpenAI service, is meant to help auditors consult methodology, standards and review documentation faster. KPMG also says its AI transaction scoring tool can analyze transactions more granularly so auditors can focus on the greatest areas of risk. At the same time, the firm says automation is now extending into judgmental audit areas, not only repetitive tasks, which suggests the line between clerical work and professional judgment is getting harder to draw.

For auditors trying to move up, that shift changes the job ladder. The old path rewarded stamina through busy season, evidence gathering and endless documentation. KPMG is now signaling that advancement will depend more on whether people can use technology well, spot where the risk really sits and apply skepticism to exceptions rather than simply process more files. The firm says AI will augment, not replace, the auditor, and that the audit will remain people-driven. That means the value of junior work is moving away from volume and toward sharper analysis, while managers will be judged on whether they can turn those tools into cleaner reviews and better calls.

The company is tying that operating model to a people story as well. KPMG says busy seasons, and even the anticipation of them, have traditionally put auditors at high risk of burnout, and that it is trying to pull work forward and create a more streamlined work experience throughout the year. It also says a positive firm culture can significantly influence audit outcomes, citing the PCAOB Staff Spotlight Report, and its FY2024 Audit Quality Report says the firm is making multi-year investments in audit approach, quality control, people and technology. The message to audit teams is blunt: the firm wants less drudgery, but it also wants more judgment, and the people who can deliver both will have the clearest path forward.