The Arizona Supreme Court's recent decision has paved the way for KPMG to establish a legal division within the United States. This move marks a significant milestone as KPMG becomes the first of the Big Four firms to venture into the US legal sector. By obtaining a special license to operate as an alternative business structure (ABS), KPMG is set to introduce a new entity called KPMG Law US, which aims to integrate advanced technology with legal services.

With this innovative approach, KPMG plans to offer a range of services including legal managed services, consulting on legal operations, and technological innovations in the legal field. The firm envisions transforming the delivery of legal services by leveraging cutting-edge artificial intelligence and advanced technology solutions. According to Rema Serafi, KPMG’s vice chair of tax, this initiative positions KPMG at the forefront of providing comprehensive tech-enabled services tailored to evolving client needs.

The entry of KPMG into the US legal market signals a broader trend towards market-based reforms aimed at enhancing public access to legal services. Critics argue that nonlawyer ownership in law firms may create conflicts of interest. However, supporters, such as Lucy Ricca from Stanford Law School, believe that these reforms will introduce much-needed competition and diversification into a sector historically dominated by professional monopolies. As KPMG navigates this new terrain, it will adhere to each state’s ethics rules, ensuring professional integrity remains intact.

The expansion of KPMG’s legal division reflects the growing dynamism in the legal services market. While some experts predict a gradual impact on existing firms, others foresee increased competition for top talent and clients. Ultimately, this development signifies a positive shift towards a more competitive and diverse legal landscape, fostering innovation and better serving the public’s legal needs.