AI is Coming for Audit Fees: KPMG's Negotiation Playbook Will Disrupt Big 4 Pricing
KPMG negotiated lower audit fees from Grant Thornton by arguing AI efficiency gains should translate to cost savings, reducing their own audit costs by $59K year-over-year. This precedent creates a template for all audit clients to renegotiate fees with Big 4 firms in 2026, as 60%+ of audit work—particularly junior associate tasks—is automatable with current AI tools. While Big 4 firms retain strong trust-based moats for IPO-bound companies, pricing power will erode as competition intensifies and cost savings from AI implementation mount.
Metrics in this report
2.1percent
Expensify, $140M revenue public company, paying $3M audit fees
0.82percent
Domo, $317M revenue public company, paying $2.2M audit fees
0.13percent
Zscaler, ~$3B revenue run rate public company, paying $4M audit fees
60percent
Percentage of audit work currently done by humans that can be automated with current AI tools
100thousand USD
minimum
Private company startups, simple operations
250-500thousand USD
Midsize software companies at $150M-$250M revenue run rate
59thousand USD
KPMG's 2025 audit fees vs. prior year (Grant Thornton engagement)
250-300thousand USD
Similar complexity to Expensify ($140M revenue company)
15percent
minimum
Average discount for second/third-tier firms relative to Big 4