TL;DR:
- KPMG International is incorporating AI technology into its financial audits through a partnership with MindBridge Analytics.
- The AI software will help auditors identify irregularities and questionable entries with greater accuracy.
- The partnership is a win for MindBridge, which has seen exponential growth in recent years and is considered one of Canada’s most promising AI companies.
- MindBridge was founded with the conviction that AI could revolutionize the auditing industry and has raised significant investor capital and government funding.
- Despite initial challenges, including turnover and the impact of COVID-19, MindBridge has emerged as a leader in the AI industry, with a focus on results and a well-defined product-market fit.
- The company has maintained its stability and is cash flow positive, even during the tech downturn.
- MindBridge is poised for continued growth and success in the future, with a well-defined focus and recognition for its expertise in the AI industry.
Main AI News:
Global accounting giant KPMG International Ltd. is embracing the future with its recent move to incorporate the power of artificial intelligence into its financial audits. Partnering with Ottawa-based AI company MindBridge Analytics Inc., KPMG aims to streamline its auditing process, leveraging innovative technology to identify irregularities and questionable entries with greater accuracy.
With the power of AI at its fingertips, KPMG’s digital auditing platform, used in 143 countries, will be augmented to deliver high-quality audits, according to Kristy Carscallen, Head of Audit and Canadian Managing Partner at KPMG. Traditional auditing techniques are being left behind as KPMG leverages the power of AI to identify key issues with greater speed and accuracy.
This strategic move by KPMG is a win for MindBridge, the rapidly-growing AI company that has been working with the accounting giant for several years. With its CEO, veteran software sales executive Leyton Perris, at the helm, MindBridge is back on track to achieving its early potential as one of Canada’s most promising AI companies. The partnership marks a culmination of years of hard work, refining the sales pitch, and building trust with key stakeholders.
Investor and MindBridge Director John Stokes attributes the success of this partnership to a combination of gaining confidence and refining the sales pitch over the years. With this new deal in place, KPMG and MindBridge are set to revolutionize the auditing industry, delivering superior results with the help of AI technology.
MindBridge Analytics Inc., the Ottawa-based AI company, has seen exponential growth in recent years, reporting more than six-fold growth and revenue surpassing $20 million in 2022. With a solid growth narrative and a lack of debt, the company is in active discussions for new financing, according to CEO Leyton Perris.
Founded by entrepreneur Solon Angel in 2015, MindBridge was established with the conviction that AI could revolutionize the auditing industry, detecting fraud and other anomalies with greater accuracy. This idea quickly garnered interest from companies eager to utilize the technology, leading Angel to partner with veteran tech entrepreneur Eli Fathi to bring the concept to fruition.
Under Fathi’s leadership, MindBridge attracted a talented team of seasoned executives, including former Chief Architect of IBM’s Watson Analytics Group, Robin Grosset. By 2017, the company had established itself as a leading player in the auditing industry, with 20 customers and partners across Canada, the United States, and Britain.
The timing was ideal, with Canada’s reputation as an AI hub attracting significant foreign investment in startups and research labs. MindBridge raised $42.3 million in investor capital and government funding from 2017 to 2019. However, the company struggled to find its focus, uncertain about which market segment to pursue and facing cautious clients hesitant about adopting new technology.
Despite these initial challenges, MindBridge has emerged as a leader in the AI industry, delivering innovative solutions and demonstrating the power of AI in the auditing field. With its continued growth and solid financial standing, the company is poised for even greater success in the years to come.
Despite its impressive growth, MindBridge has faced its share of challenges, including turnover and the quick exit of high-profile executives recruited in 2019. The impact of COVID-19 on revenues in 2020 resulted in a 10% reduction in staff. However, since the appointment of Leyton Perris as CEO, the company has seen its fortunes rise, with a renewed focus on quick commercialization and a sharpened product-market fit.
Under Perris’ leadership, MindBridge has tightened its focus and is being recognized for its expertise in the AI industry. With a clear understanding of its buyers and a well-defined product offering, the company has maintained its stability and is cash flow positive, even during the tech downturn that began in late 2021. With a workforce of 130 employees, MindBridge has not had to make any further cuts, positioning the company for continued growth and success.
According to Robin Grosset, MindBridge’s focus on results and a well-defined product-market fit have helped the company navigate the challenges of the tech industry. By avoiding the hiring spree that many tech companies engaged in prior to the downturn, MindBridge has remained sustainable and is poised for continued growth in the years to come.
Conlcusion:
The partnership between KPMG International and MindBridge Analytics represents a significant step forward for the auditing industry. By incorporating AI technology into its financial audits, KPMG is positioning itself as a leader in the use of innovative technology to deliver high-quality results.
Meanwhile, MindBridge’s continued growth and success demonstrate the power of AI in the auditing field, and the company’s well-defined focus and expertise position it for continued growth in the future. This partnership is a clear indication that the use of AI in the auditing industry is not only possible but also highly beneficial. It will be interesting to observe the impact of this partnership on the market and the wider industry in the coming years.
