KPMG Deploys TaxBot Agent to Accelerate Tax Advice
Key Points
- Early ChatGPT trials revealed security risks, leading KPMG to suspend‑and‑reassess AI use.
- KPMG Workbench combines retrieval‑augmented generation with multiple LLM providers.
- TaxBot was built from scattered partner tax advice and Australia’s tax code.
- A 100‑page prompt, drafted over months, powered the TaxBot agent.
- TaxBot generates a 25‑page tax advisory document in a single day, cutting two‑week tasks.
- Only licensed tax agents may operate TaxBot; professional oversight is required.
- Agents have improved staff satisfaction and sparked new client‑driven revenue opportunities.
KPMG built a closed AI environment called Workbench after early experiments with ChatGPT revealed security risks. The platform integrates multiple large language models and retrieval‑augmented generation, allowing the firm to create specialized agents. In Australia, KPMG assembled scattered partner tax advice and the national tax code into a RAG model and spent months drafting a 100‑page prompt to launch TaxBot. The agent now gathers inputs, consults human experts, and produces a 25‑page tax advisory document in a single day—tasks that previously took two weeks—while limiting use to licensed tax agents.
Early AI Experiments and Security Concerns
KPMG’s digital leaders recognized the potential of large language models (LLMs) as early as late 2022. Initial trials with ChatGPT generated "really scary" outcomes, including the discovery of sensitive financial data stored on unsecured internal to the firm. The incident prompted KPMG to suspend public AI experiments, restrict access to external tools, and reassess the dangers of uncontrolled deployment.
Building a Closed AI Platform
In response, KPMG constructed a closed environment supported by software licenses for OpenAI and Microsoft systems. This effort resulted in the KPMG Workbench, a platform that combines retrieval‑augmented generation (RAG), multiple LLM options, and agent‑hosting capabilities. Rather than relying on a single vendor, the firm deliberately spreads usage across OpenAI, Google, Microsoft, Anthropic, and Meta, creating a diversified AI ecosystem.
Employee Training and the Road to Specialized Agents
Throughout 2023, KPMG devoted extensive resources to training employees on effective prompting and interaction with AI writer systems. By 2024, the Australian arm of the firm began developing specialized agents, focusing first on tax advice.
Creating TaxBot
Development started by gathering partner‑written tax advice that had been "stored all over the place," often on individual laptops. KPMG combined this corpus with Australia’s tax code and fed it into a RAG model. Building the TaxBot agent required a dedicated team to draft a 100‑page prompt over several months, which was then integrated into the Workbench platform.
How TaxBot Works
The system requests several inputs from users, seeks guidance from human experts, and ultimately generates a 25‑page document for client review. KPMG’s chief digital officer notes that the agent now performs tasks that once took two weeks in a single day, describing the change as "very efficient." This speed is especially valuable for clients engaged in time‑sensitive transactions such as mergers.
Controls and Professional Oversight
Only licensed tax agents are permitted to operate TaxBot, and the firm acknowledges that output without professional oversight is not suitable for general users.
Impact on Staff and Clients
KPMG reports that the introduction of agents has boosted staff satisfaction by eliminating repetitive tasks. Some clients have expressed interest in acquiring similar agents, opening revenue streams the firm did not originally anticipate. However, KPMG concedes that measuring precise benefits remains difficult.