Source: Fortune
Summary
KPMG LLP is merging its AI, innovation, and ecosystem functions into a new unit, the Client Technology & Innovation (CT&I) group, led by Todd Lohr, who reports directly to CEO Tim Walsh. The move, effective Sept. 22, aims to accelerate the development of AI-native businesses. Lohr, a 15-year KPMG veteran, has been pushing for this structure to drive transformative change. The reorganization follows the retirement of Steve Chase, the previous head of AI and Digital Innovation. CT&I will focus on products, commercial infrastructure, firmwide AI strategy, and innovation incubation.
Our Reading
The announcement sounds familiar.
KPMG is reorganizing to focus on AI and innovation, putting it under a single leader who reports directly to the CEO.
Todd Lohr, a long-time KPMG employee, is leading the new unit, which includes incubating new ventures.
The move comes as KPMG faces challenges with AI-generated content and credibility issues.
The firm is betting on internal innovation to reshape its future, not just improve tools.
Author: Evan Null
Why Now, and Why Lohr
Todd Lohr, a 49-year-old KPMG veteran, is leading the new CT&I group. He has spent years building the relationships that the unit is designed to commercialize. Lohr was involved in KPMG’s alliance with Anthropic and has oversight of partnerships with Google Cloud, Microsoft, OpenAI, and Databricks. His background includes co-founding a financial-services consulting start-up and working at Zurich Insurance, giving him a unique perspective on innovation.
Lohr’s experience in start-ups and technology has shaped his approach to running CT&I, which he describes as an internal venture studio. He draws inspiration from Silicon Valley incubators and aims to create a billion-dollar company within KPMG. His goal is to commercialize the firm’s ideas, which he says have been underutilized due to traditional methods.
Colleagues have suggested that Lohr’s background makes him well-suited for the role. He has been educating KPMG’s leadership on disruption, including trips to Silicon Valley and meetings with AI labs. Lohr plans to rotate rising talent through “edge companies” to gain experience and return as better consultants and accountants.
The new structure is a strategic shift for KPMG, moving away from traditional consulting models and toward a more agile, startup-like approach. Lohr’s leadership is seen as key to driving this transformation and ensuring KPMG remains competitive in a rapidly changing market.
Despite his confidence, Lohr acknowledges the risks involved. He stresses that AI is powerful but also a responsibility, and that the firm must maintain quality and integrity in its outputs.
What CT&I Actually Does
The CT&I group has four main areas of focus: products and platforms strategy, commercial infrastructure, firmwide AI and data strategy, and innovation/incubation. These pillars go beyond traditional AI functions, aiming to create new products and services for clients. The group is responsible for go-to-market strategies and deal structures that differ from KPMG’s historical approach.
The firmwide AI and data strategy includes the mandate previously under the AI & Digital Innovation group. Innovation and incubation involve creating “edge disruption plays” with varied capital structures and routes to market. These ventures can be folded back into KPMG, spun out with outside capital, or run as standalone joint ventures.
Lohr envisions CT&I as a venture studio, where new companies are developed and scaled. He hopes to create a billion-dollar business through this model. The group’s focus is not just on internal transformation but on how KPMG will serve clients in the future.
The new structure is a departure from KPMG’s traditional consulting model, aiming to be more agile and responsive to market changes. Lohr believes that by operating on the “edge,” the firm can innovate more effectively and stay ahead of competitors.
CT&I is also responsible for vetting content to prevent AI hallucinations, using an internal tool called Hawk. This reflects KPMG’s broader efforts to maintain credibility and accuracy in its outputs, especially as AI becomes more integrated into its work.
An Awesome Responsibility
In June 2026, KPMG faced a credibility crisis when a report it published was found to contain fabricated case studies and false claims. The report, titled “Total Experience: Redefining Excellence in the Age of Agentic AI,” cited non-existent examples from UBS, Swiss Federal Railways, and the UK’s National Health Service. This incident highlighted the risks of AI-generated content and the need for better oversight.
In response, KPMG developed an AI tool called Hawk to detect hallucinations in its content. The tool is primarily used by the marketing department to vet thought leadership pieces. However, CT&I’s mandate goes beyond internal transformation and focuses more on how KPMG serves clients in the future.
The issue of AI hallucinations is not unique to KPMG. Similar problems have been found in reports from other Big Four firms, including EY, Deloitte, and PwC. These incidents have raised concerns about the reliability of AI-generated content and the need for stricter controls.
Lohr emphasized that KPMG has had an AI acceptable use policy for over a decade. He stressed that while AI is powerful, it also comes with a responsibility to ensure accuracy and integrity. He believes that the entire workforce must understand this and take ownership of their work products.
Despite the challenges, Lohr remains optimistic about KPMG’s ability to navigate the AI landscape. He believes that by focusing on trusted AI and maintaining a culture of accountability, the firm can continue to innovate while preserving its reputation.
Conclusion: A New Era for KPMG
KPMG’s reorganization reflects a broader shift in the professional services industry. As AI becomes more integrated into business operations, firms must adapt to stay competitive. KPMG’s decision to create a dedicated unit for AI and innovation signals a commitment to this transformation.
The move also highlights the challenges of managing AI responsibly. With the rise of AI-generated content, firms must ensure that their outputs are accurate and credible. KPMG’s development of tools like Hawk is a step in the right direction, but more work is needed to address the risks.
Leaders like Todd Lohr are at the forefront of this change, driving innovation while maintaining a focus on quality and integrity. His experience in start-ups and technology gives him a unique perspective on how to balance these priorities.
As KPMG moves forward, it will need to navigate the complexities of AI while maintaining its reputation as a trusted advisor. The success of CT&I will depend on its ability to innovate without compromising on quality or credibility.
Ultimately, KPMG’s reorganization is a bold move that reflects the changing landscape of professional services. Whether it will succeed depends on its ability to adapt, innovate, and maintain the trust of its clients and stakeholders.
