KPMG Formed New AI Startup Incubation Group

The firm launched a dedicated unit to develop and fund AI-native businesses in partnership with major tech leaders.

Updated on Sept. 29, 2026 in Artificial Intelligence

Isometric editorial illustration featuring modular crystalline prisms and interlocking cubes, symbolizing a structural business incubation process. — KPMG has launched a new technology unit, Client Technology and Innovation, to incubate and fund AI-native startup ventures in the United States. AI Illustration. Upload story photo >

Live Poll

Do you trust that legacy companies can successfully innovate by launching independent startup business units?

KPMG has established a new group, Client Technology and Innovation, to incubate and launch AI-native startups known as edge companies. These ventures will receive funding from KPMG Ventures and collaborate with the firm’s existing advisory, tax, and audit teams.

Why it matters

The initiative aims to increase business agility and speed while providing a unique leadership development experience for participants. By co-developing products with major tech partners, the firm seeks to deliver innovative solutions to both new and current clients.

The new unit creates AI-native businesses through dedicated founders and staff, leveraging strategic co-development with partners including Anthropic, Google, Microsoft, OpenAI, and Databricks.

The players

KPMG

This 130-year-old firm provides global audit, tax, and advisory services to a wide range of clients.

Steve Chase

He currently serves as the Vice Chair at KPMG and is set to retire from the position in late 2026.

KPMG Ventures

This is the corporate venture capital arm of the firm responsible for funding the newly formed edge companies.

The details

KPMG provides these edge companies with the necessary infrastructure to scale while planning for long-term exit strategies such as spin-outs or outright sales. This group builds upon the firmwide AI transformation efforts that the organization first initiated in 2023.

Firmwide AI transformation efforts began in 2023.
Vice Chair Steve Chase is scheduled to retire on September 30, 2026.

The Tech Race

This move signals a shift toward agile startup incubation within legacy professional services firms to maintain competitiveness. It positions the organization against traditional rivals by integrating AI-native development directly into its core service offerings.

Clients can expect the potential for more advanced, AI-driven tools integrated into their tax and audit workflows. The development of these edge companies may eventually provide users with access to specialized software products tailored to specific professional challenges.

The takeaway

The move demonstrates a strategic shift in how long-standing consulting firms approach innovation by building tech companies from the ground up. This model allows the firm to capture value from AI advancements while creating a pipeline for future software-based revenue streams.