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KPMG drafted a comprehensive 100-page blueprint to create an autonomous TaxBot for tax-handling purposes

Reduces advice production time from two weeks to a day, maintaining employment levels

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KPMG Creates Detailed Guideline for Developing Proactive Tax Assistance Bot, named TaxBot
KPMG Creates Detailed Guideline for Developing Proactive Tax Assistance Bot, named TaxBot

KPMG drafted a comprehensive 100-page blueprint to create an autonomous TaxBot for tax-handling purposes

KPMG Revolutionises Tax Advice with AI-Powered Solutions

KPMG, the global professional services network, has taken a significant stride in streamlining tax advisory workflows with the development of an AI-powered tax advice system. This innovative approach, exemplified by an "agentic" AI bot called TaxBot, has dramatically accelerated tax advice production from two weeks of human work to a single day.

The journey towards this technological leap began with cautious experimentation, including temporary blocks on AI models such as ChatGPT due to security concerns. However, KPMG's response was swift, partnering with Microsoft to deploy a secure AI environment and eventually creating a private global AI platform called KPMG Workbench. This platform integrates large language models (LLMs) from multiple providers, including OpenAI, Microsoft, Google, Anthropic, and Meta, to prevent vendor lock-in.

The development process involved consolidating dispersed tax advisory content into a Retrieval-Augmented Generation (RAG) model combined with Australia's tax code. This enabled the TaxBot to produce comprehensive 25-page drafts of complex tax advice efficiently and reliably.

In addition to TaxBot, KPMG has launched the Digital Gateway for Tax, an integrated platform powered by Microsoft Azure that incorporates generative AI capabilities to enhance reporting, compliance, planning, and data management tasks for tax departments worldwide.

Despite initial challenges such as data security risks, data dispersal, and innovation vs. risk balance, KPMG has successfully navigated these hurdles, leading to massive time reduction in producing complex tax advice, improved staff productivity, and enhanced insights and decision-making within tax functions. The benefits are evident in the scalability and flexibility offered by using multiple LLM providers and integrating AI across tax operations globally.

KPMG's commitment to AI integration is evident, with a continued emphasis on exploring new ways to use AI. The firm sees benefits in time, quality, and revenue from its use of AI, although it's difficult to measure these benefits precisely. The TaxBot, developed using a 100-page prompt, is only accessible by tax agents due to its specialized nature.

The use of AI has led to the automation of frustrating and time-consuming tasks, leading to increased employee satisfaction and a perception of KPMG as more innovative. Agents have been deployed to handle these tasks, with the TaxBot being a prime example. KPMG has also developed an agent runtime service, allowing agents to interact on tasks such as conducting research or writing project summaries.

In conclusion, KPMG’s AI-powered tax advice system exemplifies a significant technological leap that streamlines tax advisory workflows, handles complex regulatory data, and provides scalable AI integration across global tax functions while overcoming security, data dispersion, and innovation management challenges. This shift towards AI is a testament to KPMG's forward-thinking approach and commitment to leveraging technology to drive efficiency and innovation in tax advisory services.

[1] KPMG Workbench: Unifying AI for Global Standardization (Link)

[2] KPMG's TaxBot: Revolutionising Tax Advice with AI (Link)

[3] KPMG's Digital Gateway for Tax: Enhancing Tax Operations with AI (Link)

[4] Microsoft Azure: Powering KPMG's Digital Gateway for Tax (Link)

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