You can build trust with AI

The telecommunications industry is highly complex, characterized by vast transaction volumes and strict regulatory requirements. When a leading telecommunications company sought KPMG’s support for their annual audit, their primary objectives were clear: enhance audit efficiency, gain deeper insights, and ensure strict compliance with industry standards. The company's extensive data volumes made traditional audit methods time-consuming and less effective. To address these challenges, we implemented cutting-edge artificial intelligence technologies, including those integrated into the KPMG Clara platform.

KPMG leveraged its extensive experience in audit and artificial intelligence, applying advanced AI-driven methodologies tailored to the telecommunications sector. The audit team worked closely with the company’s leadership to identify key areas requiring enhanced focus: high-risk transactions, revenue assurance processes, and regulatory compliance.

Our approach incorporated AI-powered solutions at three critical stages:

1. Data Analysis and Risk Identification: Using machine learning technologies integrated into KPMG Clara, the audit team analyzed 100% of the company’s transaction data. This approach helped identify anomalies and irregularities, allowing auditors to concentrate on the most significant risks. Integration with advanced statistical tools ensured accuracy and speed, enabling efficient resource allocation.
2. Automation of Reconciliation and Data Matching: Leveraging text recognition technology, our team automated the process of reconciling accounting records with primary documents. This not only reduced the time spent on repetitive tasks but also improved the accuracy and consistency of audit documentation.
3. Knowledge Sharing with OpenAI and AI Model Testing: By utilizing a proprietary OpenAI cloud environment powered by Microsoft Azure, KPMG provided access to global best practices and insights relevant to the client’s specific needs. Before deploying AI in live audits, models were rigorously tested and validated using data from prior audit cycles, ensuring reliability and alignment with expected outcomes.

The application of AI delivered significant improvements:

• Enhanced Accuracy and Deeper Insights: Full transaction coverage enabled the identification of risks and trends that could have been overlooked using traditional sampling methods.
• Reduced Audit Time: Automation of data analysis and reconciliation streamlined routine operations, allowing auditors to focus on analytical and advisory tasks.
• Regulatory Compliance: AI-powered analysis helped identify potential regulatory risks early, allowing the company to address them proactively before regulatory reviews.
• Actionable Business Insights: The audit revealed additional opportunities for process optimization, including billing enhancements and revenue recognition improvements.

The successful integration of AI tools in this audit reinforces KPMG’s commitment to innovation and continuous quality improvement. Over the next five years, KPMG aims to incorporate AI into every audit, driving greater efficiency and precision.

AI is becoming a trusted tool, while KPMG’s auditors remain the captains of the ship, setting the course and making critical decisions. This collaboration is shaping the future of audit, unlocking new opportunities for clients in the telecommunications sector and beyond.

This case exemplifies how 'You Can with AI'—unlocking the transformative potential of intelligent audit practices.