KPMG reorganizes AI division, creates new incubator

KPMG US has announced the reorganization of its AI capabilities in its new client technology & innovation group (CT&I), effective October 1.

The reorganization arrives with the retirement of Steve Chase, vice chair and global head of AI & digital innovation, on September 30. Chase built the Big Four firm’s original AI group starting in 2023.

CT&I brings together innovation, AI, and ecosystem functions into a single unit aimed at quickly developing AI-native businesses and scaling new products.

The unit will be led by Todd Lohr, a 15-year KPMG veteran who helped launch the firm’s early data and AI practices and previously led the US technology business. Lohr will report directly to CEO Tim Walsh.

CT&I will focus on experimenting and incubating ideas faster, and will bring together alliance partners, venture investments in startups, and relationships with VC firms.

“Our focus is on building a portfolio of businesses that addresses our clients’ biggest challenges across technology disruption, trust and cybersecurity, business transformation and transactions,” said Todd Lohr, vice chair and head of client technology & innovation, KPMG US. "We’ll be working like a start-up at the edge to move faster without creating risk or sacrificing quality to our core business. Each edge company will have a mandate to build and scale with a variety of exit strategies, including folding them back into the core.”

CT&I will continue to drive KPMG’s firmwide AI transformation, as well as provide leadership development opportunities in AI and digital literacy for “rising stars” at the firm.

The unit will also expand KPMG’s efforts to co-develop products with startups, frontier labs, and major alliances including Anthropic, OpenAI, and Google.

“We have successfully integrated AI into how we serve our clients, but the pace of disruption requires us to think differently and make faster, bigger bets,” Walsh said. “CT&I pairs the agility required to innovate with the talent, technology platforms, data and client relationships that differentiate KPMG.”