Microsoft, KPMG expand AI deal with $12 billion in growth opportunities
Half of 200 leaders expect generative AI to expand their overall headcount: KPMG Survey
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Which industries are most at risk because of artificial intelligence?
Zeta Global [NYSE: ZETA] CEO David Steinberg gives his take on A.I. taking human jobs on 'Making Money.'
Microsoft and KPMG are doubling down on their artificial intelligence collaboration in a deal that could unlock billions in growth potential in areas such as cybersecurity, cloud computing and tax services.
"We believe that over the next several years that $12 billion or more of additional incremental revenue will be created for KPMG through our products and services that emanate from this generative AI that we're co-developing and using with Microsoft" KPMG U.S CEO and Chair Paul Knopp told FOX Business.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| MSFT | MICROSOFT CORP. | 430.98 | +7.52 | +1.78% |
The firm’s partnership, which began back in 2000, is capitalizing on the lightening adoption of AI in the corporate world.
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"We have a real opportunity to apply this next generation of AI to help transform every industry, including professional services" said Microsoft CEO Satya Nadella in the announcement.
Microsoft CEO Satya Nadella addresses a Microsoft media event in New York. ((AP Photo/Richard Drew) / AP Newsroom)
In terms of practical, on the job use, Knopp explained how the two companies will collaborate.
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Microsoft
."We are going to co-develop solutions in the market using a lot of their technology, but using our knowledge and expertise and tax consulting deal advice, auditing to bring together the power of the two businesses" Knopp noted. In addition to Microsoft, the firm also plans to pursue other potential AI partnerships going forward.
Much has been written about the impact AI may have on jobs, including a report by McKinsey which found 25% of current tasks in the U.S could get automated. Knopp believes AI will free up workers to do more high level tasks.
"We also think it's going to allow for the movement of more routine, mundane tasks from people to technology, but allows the people in our business to then take that information and use their creative skills to provide more value added advice to our clients" Knopp said.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| GOOGL | ALPHABET INC. | 171.49 | +2.54 | +1.50% |
| NVDA | NVIDIA CORP. | 138.63 | +0.38 | +0.27% |
| INTC | INTEL CORP. | 23.93 | -0.12 | -0.50% |
| IBM | INTERNATIONAL BUSINESS MACHINES CORP. | 227.39 | -0.02 | -0.01% |
| AAPL | APPLE INC. | 239.59 | +2.26 | +0.95% |
| AMZN | AMAZON.COM INC. | 210.71 | +2.82 | +1.36% |
| MSFT | MICROSOFT CORP. | 430.98 | +7.52 | +1.78% |
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Microsoft along with Google, Nvidia, Intel and IBM, are among the big tech names vying for AI dominance. In the case of chip maker Nvidia, its AI strategy helped push the company’s market value above $1 trillion in May joining just a handful of names including Apple, Amazon and Microsoft.