A partner at KPMG Australia has been fined more than ten thousand Australian dollars for using artificial intelligence to assist in answering questions on an internal training exam about AI, marking a high-profile disciplinary action as the firm grapples with the implications of rapid AI adoption among its workforce.

The individual had uploaded internal training materials to an AI platform in breach of KPMG’s policy, triggering detection by newly implemented monitoring systems and prompting an internal investigation that led to the penalty.

The incident forms part of a wider pattern within the firm this financial year, with twenty-eight cases of staff members found using AI tools to breach internal testing rules since July.

KPMG’s policy permits open-book knowledge checks following training courses but explicitly bans using AI platforms to generate answers.

More than two dozen employees, including those below manager level, have been identified in similar breaches as the firm strengthened its exam integrity tools.

KPMG Australia’s chief executive, Andrew Yates, acknowledged the challenge of managing AI use within internal training and assessment, noting that the prevalence of AI in everyday work has outpaced some internal safeguards.

He said the firm is working to reinforce its policy framework, enhance monitoring and ensure clearer guidance to personnel on acceptable AI use.

KPMG also plans to record and disclose AI-related misconduct when it publishes its annual results.

The partner involved has self-reported the breach to Chartered Accountants Australia and New Zealand, which has launched its own investigation.

The firm has also shared information voluntarily with the corporate regulator, although current rules do not require mandatory reporting unless professional bodies take formal disciplinary action.

The case highlights broader questions about professional standards and the responsible use of AI within the accounting and consulting industry, which has seen regulators and lawmakers examine how advanced technologies affect training, compliance and ethical obligations across major firms.

KPMG’s action to fine the partner and tighten oversight reflects the firm’s efforts to uphold integrity and adapt to the complexities introduced by AI in a sector where credibility and trust are central to client relationships.