KPMG reorganizes AI division, launches Client Technology & Innovation group

KPMG LLP is merging its AI, innovation, and ecosystem functions into a single new unit called Client Technology & Innovation, effective September 22. The restructuring puts a vice chair in charge who reports directly to the CEO, bypassing the layered management structure that typically governs a firm of this size.

Todd Lohr, a 15-year KPMG veteran, will lead the CT&I group. He previously ran the firm’s US Technology Consulting practice and managed technology alliances exceeding $2 billion in partner revenue. His mandate now: build AI-native businesses at startup speed inside one of the world’s largest professional services firms.

Why KPMG is ripping up the org chart

KPMG’s answer is consolidation with teeth. Rather than spreading AI responsibilities across multiple practice leaders and innovation committees, the firm is centralizing everything under one person with a direct line to the top. Lohr told Fortune he had been “pushing for something like this for several years,” specifically a structure with “a singular leader that reports directly to the CEO.”

KPMG isn’t starting from zero on this front. Back in 2023, the firm appointed a dedicated AI and Digital Innovation Vice Chair, signaling early recognition that AI warranted its own leadership seat at the table. The new CT&I group takes that concept further by folding in ecosystem partnerships and innovation functions that previously operated as separate fiefdoms.

The broader Big Four context

KPMG’s reorganization arrives during a turbulent period for the professional services sector. The firm’s UK operations recently underwent job cuts that specifically targeted roles in data, technology, AI, and cybersecurity within the advisory division.

The other Big Four firms are making their own AI bets, though the approaches vary. Deloitte, PwC, and EY have all announced multi-billion-dollar AI investment plans over the past two years, ranging from internal tool development to client-facing AI advisory practices.

What makes KPMG’s move structurally distinct is the centralization play. Most of its competitors have distributed AI responsibilities across existing practice areas, adding AI capabilities within audit, tax, and advisory as separate threads. KPMG is arguing that this distributed model is too slow, and that a dedicated, unified group can move faster and avoid the internal turf wars that slow down cross-practice innovation.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.