KPMG Disrupts US Legal Market: Launches Tech-Driven Law Firm in Arizona
Staff Editor KPMG Enters US Legal Market with Arizona License
KPMG, one of the Big Four accounting firms, has been granted a license to establish a legal division in Arizona, marking a significant milestone as the first entry of a Big Four firm into the US legal market. The license allows KPMG to operate as an alternative business structure (ABS), enabling the creation of KPMG Law US as an independent law firm.
The new entity aims to revolutionize legal service delivery by integrating technology with traditional legal services. KPMG Law US will offer legal managed services, legal operations consulting, and legal technology innovation, combining artificial intelligence and advanced technology to meet clients’ evolving needs.
This development comes as part of Arizona’s ABS program, which has approved over 100 firms since 2021. The program allows nonlegal professionals to provide legal services, a departure from traditional American Bar Association rules that have kept the US legal market closed to nonlawyer ownership.
Arizona’s market-based reforms aim to increase public access to legal services by introducing capital, diversification, and competition. However, critics argue that nonlawyer ownership could create conflicts of interest and undermine lawyer independence. To address these concerns, KPMG Law US will adhere to state ethics rules and will not provide legal services to audit clients.
The expansion of KPMG’s legal division signals growth for its tax and legal arm, which saw a 10% global increase last year. The firm plans to serve clients nationwide, partnering with or referring to other law firms as needed.
Industry experts predict increased competition for talent and clients, though the immediate impact of KPMG’s market entry remains to be seen. Kirsten Keegan Vasquez, an industry observer, notes that new market entrants must overcome established competition. Lucy Ricca, Executive Director of the Utah Office of Legal Services Innovation, highlights the potential for a more dynamic and diverse legal services market, despite existing competitive pressures.
As other states like Washington and Utah explore similar programs allowing limited nonlawyer ownership, KPMG’s entry into the US legal market may signal a shift in the traditional landscape of legal services delivery.
