Big Four accounting company gets Arizona approval to operate firm, plans to use AI to transform legal services
KPMG has become the first Big Four accounting company to own a law firm in the United States after Arizona approved its participation in the state’s alternative business structure program. (Photo from Shutterstock)
KPMG has become the first Big Four accounting company to own a law firm in the United States after Arizona approved its participation in the state’s alternative business structure program.
KPMG Law US will operate as a subsidiary of KPMG and will combine the technology capabilities of its parent company with legal services to address the needs of legal departments, according to a Feb. 27 press release.
The Arizona Supreme Court approved the alternative business structure in a Feb. 27 order, report Bloomberg Law (here and here), Law.com, LawSites and Reuters. The Arizona program allows nonlawyers to own or invest in firms.
The approval includes a condition that prohibits KMPG Law from performing legal services for audit clients.
KPMG Law US “is uniquely positioned to transform the delivery of legal services” with “cutting-edge artificial intelligence and advanced technology solutions,” said Rema Serafi, KPMG’s vice chair of tax, in the press release.
KPMG provided answers to frequently asked questions in an email to the ABA Journal.
KPMG Law US “will primarily deliver large-scale, process-driven work, such as volume contracting, remediation exercises, M&A-driven harmonization of contracts and other legal managed services,” KPMG said.
The company provided examples.
Remediation exercises involve tailoring and updating contracts and other arrangements to account for changed circumstances, including the regulatory environment.
Mergers-and-acquisitions harmonization involves integration or segregation of contracts when businesses combine or separate.
Volume contract services help companies handle high-volume contract obligations, such as administration of nondisclosure agreements and other form-driven contracts.
KPMG Law US will operate outside Arizona “within each state’s ethics rules just like every other law firm,” KPMG said in the FAQ answers. “We can co-counsel, refer or partner with separate staffing firms and other law firms, to expand services across jurisdictions.”
See also:
KPMG advances in bid to deliver legal services in Arizona
KPMG asks Arizona to OK alternative business license for subsidiary law firm
KPMG’s bid to deliver legal services delayed as top Arizona court seeks more information
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