KPMG partner penalised for using AI to cheat on internal assessment

WEB DESK: More than two dozen employees at KPMG Australia have been disciplined for improperly using artificial intelligence in internal training assessments since July, including a senior partner who was fined more than $10,000 for misconduct during an AI-related course.

As reported by Financial Times (FT), the firm confirmed 28 incidents of AI-assisted cheating this financial year. In the most serious case, a registered company auditor completed mandatory AI training and was advised to download reference material as part of the course. However, the partner breached company policy by uploading that material into an AI tool to generate answers during an open-book test. The activity was detected through internal monitoring systems introduced last year to identify improper AI use.

Following an internal investigation, the partner was penalised financially through a reduction in future income and self-reported the matter to Chartered Accountants Australia and New Zealand, which has launched its own inquiry. The remaining 27 cases involved staff at manager level or below.

Monitoring tightened as AI use expands

KPMG Australia chief executive Andrew Yates said the firm had been grappling with how to manage AI’s rapid uptake in workplace training. Once AI-detection measures were implemented in 2024, breaches quickly surfaced, prompting a firm-wide education campaign and the rollout of new technology designed to block access to AI tools during tests.

The firm oversees more than 20,000 internal assessments annually across a workforce of roughly 10,000 employees. While open-book tests allow staff to consult official materials, uploading documents into AI systems remains prohibited.

Regulatory pressure and transparency pledge

The controversy has drawn attention from the Australian Securities and Investments Commission, which said it was not formally notified before media reports surfaced. Senator Barbara Pocock criticised the current self-reporting regime as inadequate and called for tighter oversight of major consulting firms.

KPMG has pledged to separately disclose AI-related misconduct in its annual results and to verify that employees fulfil their obligation to report breaches to relevant professional bodies, signalling a tougher stance on internal compliance as AI reshapes professional environments.