KPMG Pushes Auditor for Lower Fees, Says AI Is Making Audits Faster and Cheaper
KPMG used artificial intelligence savings as leverage to negotiate a 14% audit fee cut from longtime auditor Grant Thornton.
In a move that underscores how artificial intelligence is reshaping professional services, KPMG has reportedly asked its own auditor to lower fees, arguing that AI tools have made the audit process quicker and more cost-efficient.
According to reports, the Big Four accounting firm negotiated a reduced fee with Grant Thornton UK, which audits KPMG International, the global parent organization. The discussions were led by KPMG’s newly appointed chief financial officer, Michaela Peisger, who pressed for pricing that reflected the efficiencies created by AI adoption.
KPMG maintained that the use of artificial intelligence should translate into tangible savings, both in time and cost. The company argued that automation and advanced analytics streamline several audit tasks, making the overall process less resource-intensive. In addition, KPMG said that because Grant Thornton has audited the firm for years and already understands its financial structure, the work should require fewer hours.
The talks were reportedly firm. KPMG is said to have warned Grant Thornton that it might consider switching auditors if its expectations were not met.
The negotiations appear to have delivered results. UK Companies House filings show that Grant Thornton’s audit fee for the 2025 financial year dropped to $357,000 (around Rs 3.2 crore), down from $416,000 (approximately Rs 3.76 crore) the previous year. This represents a 14 percent reduction.
Interestingly, this move comes at a time when audit fees across Europe are generally climbing. Data from Ideagen Audit Analytics indicates that many firms are actually increasing spending as they invest heavily in AI technologies to enhance planning and automate repetitive tasks. KPMG’s approach, therefore, stands out as one of the first high-profile examples of a company using AI adoption as leverage to negotiate lower service costs.
Both companies have publicly spoken about the benefits of artificial intelligence in audit work. "Grant Thornton UK’s head of digital audit, Gary Jones, wrote in a blog post in December that the work was becoming “faster” and “smarter.”
KPMG itself has made significant investments in AI over the past few years. In 2024, the firm entered a $100 million agreement with Google Cloud to expand its AI capabilities. A year earlier, it committed $2 billion toward Microsoft’s AI ecosystem to modernize services across its global operations.
Despite the cost negotiations, KPMG has said that AI’s biggest contribution may be improved “audit quality” rather than just direct savings. The firm also acknowledges that audit pricing still depends on factors such as complexity, scope, and scale.
Even so, this episode highlights a broader shift: as artificial intelligence transforms how professional work is delivered, clients may increasingly expect those efficiencies to be reflected in the bills they pay.
