KPMG and Microsoft Launch Frontier Innovation Hub to Accelerate Trusted Agentic AI at Enterprise Scale

New York, NY/Redmond, WA — October 21, 2026 — KPMG LLP, the U.S. audit, tax and advisory firm, and Microsoft today announced a new phase of their collaboration with the opening of the KPMG and Microsoft Frontier Innovation Hub, a co-innovation environment designed to help organizations accelerate the adoption of trusted agentic AI. The Hub brings together KPMG specialists, Microsoft engineering and technology teams, and clients to design, test, govern and scale enterprise AI solutions.

"Organizations are moving quickly from AI experimentation to AI-powered execution," said Todd Lohr, Vice Chair of KPMG's Client Technology and Innovation group. "The KPMG and Microsoft Frontier Innovation Hub is a space where KPMG, Microsoft and clients will co-build to rapidly explore what's next, solve complex business challenges and create AI solutions that are innovative, practical and trusted."

The Frontier Innovation Hub, located near Microsoft’s Redmond, WA headquarters, represents a long-term, seven-year strategic co-investment.  As KPMG and Microsoft’s shared customers invest billions of dollars into AI innovation, the Hub brings together Microsoft Copilot, Microsoft Fabric, Microsoft Foundry and agentic technologies in a co-innovation environment that will help clients reshape how work happens with AI based on their real-world scenarios and needs. The objective is to help clients become Frontier Firms, defined by Microsoft as organizations that are human-led and agent-operated. Client teams will sit alongside KPMG and Microsoft to build technology solutions and new operating models for their organizations that will position AI as a team enabler, augmenting human expertise and accelerating execution.

KPMG and Microsoft are extending their long-standing co-investment in trustworthy AI to pioneer real-time agentic assurance and runtime enforcement capabilities. Together, the organizations intend to help enterprises deploy autonomous AI agents with active, continuous guardrails—ensuring that as agents execute critical business operations, they operate strictly within pre-defined boundaries of trust, compliance, and corporate accountability.

“The next challenge in AI is not just innovation. It is trust,” said Cherie Gartner, Microsoft Global Client Lead Partner. “Organizations are moving rapidly from experimentation to autonomous execution. The Frontier Innovation Hub brings together KPMG’s leadership in trust, assurance and transformation with Microsoft’s AI innovation capabilities to help clients move faster, scale responsibly and unlock measurable business value from agentic AI.”

New solutions developed with Microsoft will be operationalized through the firm's foundational client delivery platforms built on Microsoft Azure. KPMG Digital Gateway Powered by Claude embeds frontier AI where work happens, connecting client data, KPMG knowledge, workflows, applications, and controls. Trusted AI, controls and assurance capabilities are also embedded into KPMG Clara, the firm's global, technology-enabled audit platform to support more intelligent, transparent and technology-enabled service delivery.

“The customers we work with are ready to scale agents, and they want control, governance, observability, and transparency built in as they do it," said Rodrigo Kede Lima, President of Microsoft Frontier Company. "By combining Microsoft's AI capabilities with KPMG's expertise, we help organizations move faster with transparency, accountability and control. The Frontier Innovation Hub is where we build that together and prove it works."

From Client Zero to Industry Solutions

KPMG is also bringing its own AI transformation efforts to the Hub as a live environment to design, test, and refine solutions before bringing them to clients. For example, KPMG will showcase its adoption of Microsoft Agent 365 to manage how AI agents are deployed, managed, monitored and updated across the KPMG global organization, as it also provides access to Microsoft Copilot across its global workforce of more than 276,000 professionals.

The initiative builds on KPMG's AI Trust and Assurance capabilities as the first organization worldwide to achieve BSI/ISO 42001 certification for AI Management Systems and applies that experience to help organizations operationalize governance as AI adoption accelerates.

Some or all of the services described herein may not be permissible for KPMG audit clients and their affiliates or related entities.

About KPMG LLP

KPMG LLP is the US member firm of the KPMG global organization of independent member firms providing Audit, Tax and Advisory services. The KPMG global organization operates in 138 countries and territories and has more than 276,000 people working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients.

KPMG is widely recognized for being a great place to work and build a career. Our people share a sense of purpose in the work we do, and a strong commitment to increasing access to education and opportunity, advancing mental health, and supporting community vitality. Learn more at www.kpmg.com/us.

About Microsoft

Microsoft (Nasdaq “MSFT” @microsoft) creates platforms and tools powered by AI to deliver innovative solutions that meet the evolving needs of our customers. The technology company is committed to making AI available broadly and doing so responsibly, with a mission to empower every person and every organization on the planet to achieve more.

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