KPMG Puts AI Incubator Under Direct CEO Oversight

KPMG is combining its U.S. AI, innovation and technology-partner teams in a new group tasked with building AI-based businesses and products. Todd Lohr will lead the unit as vice chair and report directly to CEO Tim Walsh.

The Client Technology & Innovation group was announced September 22 and is set to begin October 1. KPMG says it will bring together AI strategy, product development and relationships with technology companies, startups and venture investors.

The group will test ideas in smaller “edge” businesses, then scale products for clients. KPMG says those ventures could become part of the firm, operate as joint ventures with partners, or follow other paths to market.

That puts the new team’s focus beyond using AI to make KPMG’s own work more efficient. The firm wants it to develop offerings in areas including cybersecurity, business transformation and technology disruption.

KPMG says it plans to work with partners including Anthropic, Google Cloud, Microsoft, OpenAI and Databricks. The company also expects more joint ventures and products developed with clients.

Lohr will take over as Steve Chase retires on September 30. Chase led KPMG’s AI and Digital Innovation group, which began in 2023, and later served as KPMG International’s global head of AI.

The reorganization also gives KPMG a structure to test new commercial models alongside its established audit, tax and advisory businesses. In an interview with Fortune, Lohr described the plan as an internal venture studio and said he hopes it will produce a billion-dollar company.

KPMG says the group will also continue its firmwide AI work, including employee training and safeguards for using the technology. Its first test will be whether the new structure can turn partner relationships and internal ideas into products clients will buy.