A partner at KPMG Australia has been fined A$10,000 (approximately £5,200) for using artificial intelligence to cheat on an internal training course focused on AI, the firm confirmed Friday. The incident is part of a broader pattern of AI-assisted cheating among KPMG Australia staff, with more than two dozen employees caught using the technology on internal exams since July.
KPMG discovered the cheating through its own AI detection tools, according to reports in the Australian Financial Review. The unnamed partner is one of several individuals penalized for violating company policy, highlighting the challenges firms face in regulating the use of AI even as they integrate it into their operations. The firm has not publicly identified the partner.
The incident comes amid growing concerns about the potential for AI to facilitate academic and professional misconduct. In December, the Association of Chartered Certified Accountants (ACCA), the UK’s largest accounting body, announced it would revert to in-person exams to combat AI-driven cheating, stating that AI tools had reached a “tipping point” where existing safeguards were insufficient. Helen Brand, chief executive of the ACCA, explained the decision was necessary to address the escalating use of AI in exam settings.
This is not the first time KPMG Australia has faced scrutiny over misconduct. In 2021, the firm was fined A$615,000 after an investigation revealed that over 1,100 partners had engaged in improper answer-sharing on tests designed to assess skills and integrity. The latest incident, still, introduces a new dimension to the problem, as the cheating itself involved the use of the very technology the firm is attempting to implement.
KPMG Australia’s chief executive, Andrew Yates, acknowledged the difficulty of policing AI use, stating, “Like most organisations, we have been grappling with the role and use of AI as it relates to internal training and testing. It’s a very hard thing to get on top of given how quickly society has embraced it.” Yates added that the firm is actively exploring ways to strengthen its policies and detection methods.
The irony of using AI to cheat on an AI training course was noted by industry observers. Iwo Szapar, creator of an AI maturity platform, commented on LinkedIn that the issue wasn’t simply cheating, but a failure to redesign training programs to reflect the changing landscape. “This is a training problem,” Szapar wrote.
KPMG has indicated it will continue to monitor the use of AI by its staff and track instances of misuse. The firm’s global AI workforce lead, Niale Cleobury, has emphasized the importance of AI integration, stating that all employees have a “responsibility to be bringing AI to all of our work.” KPMG partners will be evaluated on their AI proficiency during their 2026 performance reviews.
As of February 16, 2026, KPMG Australia has not announced any further disciplinary actions or policy changes beyond the fines levied against the 28 staff members. The firm has not specified the AI tools used by employees to cheat, nor has it detailed the specific nature of the internal exams compromised.
