Skip to main content

Why knowledge engineering is the key to AI agent value

Unlocking sustainable value from agentic artificial intelligence (AI) is a strategic imperative for your business. The discipline of knowledge engineering allows organizations to capture and structure their information for machine use, so they can scale their AI efforts enterprise wide.

What is knowledge engineering?

Knowledge engineering bridges the gap between human intuition and AI by acquiring, structuring, and encoding human expertise so machines can use it effectively. This approach provides AI agents with the semantic structure required to interpret both structured and unstructured data and ensures that AI doesn’t generate answers based only on patterns, but also on trusted, contextual knowledge.

We are at the end of the 'big data' era and at the dawn of the 'big knowledge' era. Competitive advantage won't come from owning data, but from embedding it with meaning. That is the path to unlocking the true potential of enterprise AI.

Matteo Colombo

Global leader, Digital Technologies, KPMG LLC

How can AI agents interpret business data more like humans?

Today's AI agents are ready to tackle complex tasks, but they don’t interpret business data the same way a human does. Reports and dashboards built for human eyes are often not structured to present all the context that machines need to interpret them effectively, leading to stalled AI initiatives and wasted investments. Here’s what you can do about it:

01
Align human-machine thinking

By providing context and business logic to AI agents, they can interpret company-specific language nuances just as an experienced employee would. This can unlock new possibilities for intelligent decision-making and operational efficiency.

02
Expand beyond traditional formats

Feeding a report that includes proprietary company context to advanced AI is like handing a person a pile of binary code. By enriching raw data with meaning, organizations can empower AI to not only process information but also derive actionable business value—turning your datasets into strategic advantage.

03
Translate unstructured data

A majority of all enterprise information is unstructured data (e.g., emails, chats, posts, reviews, sensor data). Even with data in this format, knowledge engineering can provide the consistency and defined relationships that AI systems require.

What are the most critical aspects of knowledge engineering?

Knowledge engineering is built on three pillars that work together to make knowledge explicit for agentic systems:

1

The semantic layer acts as a business translator, connecting technical data structures to business language and relationships. This translation enables both humans and AI agents to interpret, reason, and act on information with confidence. 

2

The ontology defines the concepts, relationships, and rules within a specific domain. It creates a common language, so both humans and AI systems can consistently interpret terms like “customer” and “order,” enabling accurate reasoning and decision-making.

3

The knowledge graph brings the semantic layer and ontology to life. This allows agents to traverse relationships, infer new knowledge, and answer complex questions. 

Knowledge engineering

The knowledge engineering imperative

Service
Harness the power of data to modernize operations
By harnessing data, your business can produce data products, tools, systems, and applications that drive business decision-making and help modernize operations.

How KPMG can help

Business must evolve from data management to knowledge engineering. In this way, they can unify all data types and pair them with data management tools like semantic layers, ontologies, and knowledge graphs to increase the quality and accuracy of agentic output. Collaborate with KPMG to help lead this critical initiative. We have the skills, technologies, and domain knowledge that can be tailored to your business to help you succeed in the agentic AI era.

KPMG recognized as a leader for technology services

It's always satisfying when the marketplace cites your contributions to client success. KPMG was recently named #1 in quality rankings for data & analytics and for Improving IT Infrastructure in the US by Source; a Horizon 3 Market Leader in the HFS Horizons AADA Quadfecta Services for the Generative Enterprise 2024; and a “Leader”, the highest designation, in The Forrester Wave™: Oracle Services, Q1 2025 report.

Market Leader in Generative Enterprise Services

Market Leader in Generative Enterprise Services

in Generative Enterprise Services, 2025 by HFS Research

AADA Quadfecta Services for Generative Enterprise

AADA Quadfecta Services for Generative Enterprise

#1 in quality ranking for Data & Analytics by Source

#1 in quality ranking for Data & Analytics by Source

#1 in quality ranking for Improving IT Infrastructure by Source

#1 in quality ranking for Improving IT Infrastructure by Source

Wave Leader 2025

Wave Leader 2025

The #1 firm for consulting quality in the US

In a recent survey of clients by Source, KPMG was ranked the #1 firm for quality of work and recognized as the leading authority in risk consulting in the US. The firm was also named one of America’s best management consulting firms by Forbes. 

1: Source Perceptions of Consulting in the US, 2025
2: Forbes Media LLC, 2025
3: Source Perceptions of Risk Firms in 2024

Find out why companies choose KPMG

Explore related insights

Meet our team

Image of Matteo Colombo
Matteo Colombo
Principal, KPMG Global Leader for Cloud, Data, AI , KPMG US
Image of Peter Irwin
Peter Irwin
Principal, Advisory, Lighthouse, KPMG LLP

Thank you!

Thank you for contacting KPMG. We will respond to you as soon as possible.

Contact KPMG

Use this form to submit general inquiries to KPMG. We will respond to you as soon as possible.
All fields with an asterisk (*) are required.

Job seekers

Visit our careers section or search our jobs database.

Submit RFP

Use the RFP submission form to detail the services KPMG can help assist you with.

Office locations

International hotline

You can confidentially report concerns to the KPMG International hotline

Press contacts

Do you need to speak with our Press Office? Here's how to get in touch.

Headline