KPMG Makes History as First Big Four Firm to Practice Law in the US

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KPMG Enters The US Legal Market

KPMG has broken new ground in the US legal market with the Arizona Supreme Court approving KPMG Law US to practice as an alternative business structure, marking the first time a Big Four accounting firm can legally practice law in the United States.

The approval comes under Arizona’s reformed regulations. Enacted in 2020, these changes allow non-lawyers to have economic interests in law firms. KPMG was quick to seize this opportunity.

The new law firm will leverage KPMG’s established presence in Arizona where the firm already serves over 100 clients in the state with approximately 300 employees.

Tech-Powered Legal Services

KPMG Law US isn’t planning to be just another law firm. They’re focusing on technology-driven legal services in an approach that combines cutting-edge AI and advanced technology with traditional legal expertise.

The firm will operate as an independently managed subsidiary of KPMG LLP. The firm says it will maintain strategic alignment with KPMG’s tax practice while also adhering to legal professional standards.

KPMG’s legal network already spans more than 80 jurisdictions globally. The new US entity will collaborate with this existing global network, providing clients with access to the full, KPMG network.

For operations outside Arizona, KPMG Law US plans to use co-counsel arrangements. They’ll partner with other firms and legal staffing companies in a strategy that follows established practices used by traditional law firms for decades.

High-Volume Legal Work

But don’t expect KPMG Law US to handle your next criminal case. They’re targeting process-driven legal services like volume contract management work, M&A contract work, large-scale remediation processes involving regulatory changes and similar.

The firm’s existing use of technology and its global network and financial clout means it will have all the means necessary to make a major impact on the legal scene.

Big Four firms have long provided legal services internationally. Now they have a foothold in the American legal market.

For corporate clients, the KPMG move offers new options for handling high-volume legal tasks and for law firms, it represents both competition and potential collaboration opportunities.

The Arizona ‘foot-in-the-door’ hold means some big changes could be coming to the US legal scene with other Big Four firms intent on studying how things go. The response will come from both the Big Four, and other biglaw firms already seeking to up their consultancy and business consulting efforts to compete effectively with the new arrivals.

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