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KPMG fines partner for using AI in internal AI exam  

AUSTRALIA: According to an Australian Financial Review report, a partner at KPMG Australia has been fined A$10,000 ($7,000) for using artificial intelligence tools to cheat on an internal training exam focused on AI itself, underscoring the growing challenges professional services firms face as staff adopt the technology.

The unnamed partner was required to retake the assessment after uploading training material into an AI platform to generate answers. KPMG said more than two dozen employees had been caught misusing AI in internal exams during the current financial year.

KPMG Australia chief executive Andrew Yates, said the firm was struggling to keep pace with the rapid uptake of AI. “Given the everyday use of these tools, some people breach our policy. We take it seriously when they do,” he said, adding that the firm was reviewing safeguards under its self-reporting regime.

The incident adds to broader concerns across the accounting profession. The Association of Chartered Certified Accountants last year scrapped remote examinations, citing the growing sophistication of cheating systems. All four Big Four firms have faced penalties linked to cheating scandals across multiple jurisdictions in recent years.

KPMG said it has adopted measures to detect AI misuse and will disclose the number of breaches in its annual results. 

The case surfaced during a Senate inquiry into industry governance, where Greens senator Barbara Pocock criticised the lack of tougher consequences. Australia’s corporate regulator, the Australian Securities and Investments Commission, said it would not intervene unless disciplinary proceedings were initiated by the profession’s trade bodies.

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