KPMG Australia achieves world first in AI, gaining new certification to ensure the tech’s green and ethical use

The consulting firm has become the first organisation in the world to be awarded a new certification the not only ensures AI’s safe use but audits its carbon footprint as power-hungry data centres come under fire.

KPMG has spent much of this year working on gaining certification from the British Standards Institution on ISO 42001 – a new internationally recognised standard aimed at ensuring the responsible use of AI.

KPMG Australia has become the world’s first organisation to be awarded a new certification on the safe and ethical use of artificial intelligence, declaring it will strengthen its competitive edge as regulators dither on how to rein in the much-hyped ­technology.

KPMG has spent much of this year working on gaining certification from the British Standards Institution (BSI) on ISO 42001 – a new internationally recognised standard aimed at ensuring the responsible use of AI.

The standard not only covers safeguards but AI’s carbon footprint, which has attracted criticism given the copious amount of power and water used by data centres – the technology’s backbone.

KPMG chief digital officer John Munnelly said while many of the firm’s clients wanted to access AI’s productivity-boosting benefits they remained cautious about deploying it at scale.

KPMG chief digital officer John Munnelly.

“They just want to know that you have a responsible or trusted framework. And this (certification) is the icing on the cake, because a third party’s come in and stamped it,” he said.

Mr Munnelly said it allowed KPMG to “get in early” on ensuring it complied with impending regulation.

“If you look at what the Australian government bought out with the voluntary AI standards two months ago, they specifically reference that to get to international consistency, they’re going to align with ISO 42001.

“It’s the same as (ISO) 27001 that everybody had to do two decades ago. That was the base one if you were in technology you had to do it because it was all about managing information security. Then a decade ago, they came out with 27017, which was all cloud – you know, as a customer, you’re using my data and it’s in the cloud.

“This is now the third one. For me, it’s like the trifecta of standards that every tech organisation or every organisation that uses technology delivering services to clients is going to need.”

The federal government released a discussion paper on Tuesday. It said it believed AI was well placed to deliver benefits to both consumers and businesses through the use of chatbots and virtual assistants – with the technology forecast to inject up to $600bn a year into the national economy by the end of the decade.

But the government said AI could “amplify” or create “new risks” for consumers without proper protections in place. How to manage those risks has sparked debate. While the European Union has introduced a dedicated act, Australia is following the US, believing that AI can be governed by existing laws.

Atlassian has called for a central “clearinghouse” instead of a new regulator to deal with artificial intelligence issues related to consumer law. The clearinghouse would also help foster collaboration across the regulatory environment and develop, review and update legislative instruments under the framework act, the software giant said.

Mr Munnelly said international standards helped remove guesswork. BSI president, regulatory services, Manuela Gazzard said: “AI has the potential to be a significant force for good in society, transforming lives everywhere. But to realise its benefits having the guardrails in place for the safe and ethical use of AI is critical.

“It’s fantastic to see KPMG Australia demonstrate the work they have done to ensure the safe and responsible use of AI and become the first in the world to achieve BSI’s certification to the AI management system standard. This is an important step forward and one that has the potential to empower other global organisations to responsibly manage their technology.”

Originally published as KPMG Australia achieves world first in AI, gaining new certification to ensure the tech’s green and ethical use