Compliance professionals working to prevent financial crimes are losing their faith in AI to solve more problems than it causes, as recent survey data has found a significant drop in those saying the technology has positively impacted their programs between 2023 and 2024. 

This is one of the findings of a survey issued by financial and risk management solutions provider Kroll in its most recent Financial Crime Report. The report found that, as adoption of AI and machine learning advances, only 20% of respondents now exploring these tools report a “very positive impact” on their financial crime compliance frameworks. In contrast, the 2023 survey found 37% said the same thing. Dan Rice, managing director of cyber risk at Kroll, said that professionals found that the current set of solutions simply was not up to the task required of them. 

“A lot of promises were made in 2023, and have not come to pass. The short answer is that AI was never going to solve the problems it was sold to solve. Many financial institutions and large companies have data problems, and if the data isn’t great, the AI tends not to work well. There were many leaps in logic that suggested AI would fix the data problems and, consequently, many of our other problems. However, that’s not the case and won’t be the case. There’s still a lot of hard work below the surface needed to get this right. Many companies rushed into implementation of AI without proper planning, and now the focus is on developing the right strategy, governance and documentation to ensure compliance,” he said in an email.

At the same time, 71% of respondents expect financial crime risks to increase this year, yet only 23% believe their organization’s compliance program is “very effective.” This is at least partially due to lack of technology investment, as only 30% say their organization’s financial crime compliance program is sufficient in these respects, or weak governance, as only 29% strongly agree that their organization has a robust governance infrastructure for overseeing financial crime. 

AI plays a large role in this perception of risk, as 61% cited the increased use of AI by criminals as a leading catalyst for risk exposure in the coming year, outdone only by general cybersecurity risks at 68% (which also is increasingly driven by AI). Overall, there seems to be a divide in whether AI ultimately is more boon or burden. While 57% believe AI developments will benefit their financial crime compliance programs, while 49% agree AI poses a significant risk to compliance. 

The drop in those who say AI has made a very positive impact stands in contrast to other surveys which show AI enthusiasm growing generally. For instance, a recent survey from practice management solutions provider Karbon showed that the proportion of those excited about AI went from 41% to 63% for firm owners and 26% to 40% among individual contributors and staff in technology, operations and administrative positions. Meanwhile, a report from Wolters Kluwer shows rising AI implementations, growing 34% in just one year. And late last year, an EY poll found AI trust doing a 180, going from 85% saying generative AI will not drive increased effectiveness and efficiency over the next three years in 2023, to 87% saying it will just one year later. 

This difference could come down to who was polled. Kroll surveyed 600+ worldwide respondents that included CEOs, chief compliance officers, general counsel, chief risk officers and other financial crime compliance professionals. Half work in the financial services industry and the remainder are from other regulated industries, including accountancy, insurance, real estate, and legal services. Poll respondents came from the U.S. and UK, Western Europe (France, Germany, Ireland, Italy, Spain and Switzerland), Scandinavia (Norway and Sweden), Asia Pacific (Australia, India and Japan), Hong Kong, Singapore and the Middle East/Africa (United Arab Emirates and South Africa), as well as offshore financial centers—the British Virgin Islands, Cayman Islands and Jersey. 

The American Institute of CPAs submitted a set of legislative priorities in a letter to congressional leaders earlier this month, suggesting possible changes to the tax rules.

In a March 6 letter to the Republican and Democratic leaders of Congress’s main tax committees, the House Ways and Means Committee and the Senate Finance Committee, AICPA Tax Executive Committee chair Blake Vickers recommended a number of legislative proposals:

• Include the Freedom to Invest in Tomorrow’s Workforce Act (H.R. 1151 / S. 756), allowing 529 plan funds to be used for post-secondary credential expenses;
• Provide permanent and consistent tax relief to individuals and businesses affected by natural disasters, such as the Filing Relief for Natural Disasters Act (H.R. 517 / S. 132);
• Retain the qualified business income deduction and expand the QBI deduction; limit phase-in range;
• Extend the Section 174 research and experimental costs expensing and other related expired/expiring provisions of the Tax Cuts and Jobs Act of 2017;
• Preserve the pre-TCJA full deduction for all state and local taxes paid or accrued in carrying on a trade or business, whether paid at the entity level or by a partner/owner;
• Continue the TCJA higher exemption amounts for the individual Alternative Minimum Tax, which simplifies filing for many taxpayers;
• Preserve the current availability of the cash method of accounting for tax purposes;
• Increase the Form 1099-K reporting threshold from $600 to $10,000 or above for third-party payment platforms; and,
• Include the Paid Family and Medical Leave Tax Credit Extension and Enhancement Act (S. 400), which would provide certainty to businesses by making a temporary paid family leave tax credit permanent.

The letter comes as Republicans in Congress prepare a reconciliation bill that will extend the expiring provisions of the Tax Cuts and Jobs Act, such as the QBI deduction, while adding campaign promises from President Trump, such as making income from tips, overtime and Social Security tax exempt, as well as interest on car loans for American-made vehicles. A new proposal emerged last week from Commerce Secretary Howard Lutkin, who said Trump wants to exempt people who earn less than $150,000 per year from paying taxes.

“I know what his goal is — no tax for anybody making under $150,000 a year,” Commerce Secretary Howard Lutnick said in an interview with CBS News, according to Kiplinger. “That’s his goal. That’s what I’m working for.”

The AICPA has more tax changes beyond the ones listed above. The AICPA’s full 2025 Tax Legislative Compendium contains 69 proposals, including 14 disaster tax relief recommendations. The overall goal is to improve tax administration, make the Tax Code fairer, and effectively promote important policy objectives.

“Each new Congress, the AICPA sends Congress our recommendations for simple fixes to technical issues they can address as they draft tax legislation,” said Melanie Lauridsen, the AICPA’s vice president of tax policy and advocacy, in a statement Monday. “Our tax legislation priorities include recommended proposals that would reduce uncertainty and complexity for taxpayers, improve simplification within the tax system, and transform how taxpayers and tax practitioners interact with the IRS, while our 2025 Compendium addresses significant issues affecting businesses, taxpayers and their accounting representative.”

In an era of increasing financial complexity and regulatory scrutiny, the integration of law and accounting is more crucial than ever. 

Recognizing this trend, KPMG LLP has taken a significant step by launching KPMG Law US, marking a milestone as the first law firm owned by a Big Four firm to serve the U.S. market. This strategic move underscores the growing need for businesses to navigate the intersection of financial and legal considerations with greater efficiency and expertise.​ 

KPMG Law US plans to deliver a focused set of technology-enabled legal services powered by artificial intelligence and KPMG Digital Gateway, building upon the firm’s established Legal Business Services practice. The new law firm will collaborate with the KPMG global network of law firms already operating in more than 80 jurisdictions. Together, KPMG Law US and KPMG will provide legal managed services, legal operations consulting and advanced legal technology innovation, to help clients gain efficiencies and empower their legal teams to concentrate on strategic priorities. 

Legal education in accounting and accounting education in law

As the demand for professionals with dual expertise in law and accounting grows, law and business schools are adapting their curricula to better equip future attorneys with financial acumen. Institutions such as the University of Denver Sturm College of Law and Daniels College of Business are incorporating specialized courses like Accounting for Lawyers, designed to provide law students with foundational accounting knowledge. These courses bridge the gap between legal theory and financial practice, ensuring attorneys and accountants can effectively interpret and analyze financial statements, tax structures, client settlement negotiations and regulatory requirements.

Beyond classroom instruction, innovative programs are fostering collaboration between future CPAs and attorneys. One such initiative is the integrated tax preparation program, where accounting and law students jointly operate Volunteer Income Tax Assistance sites. These VITA programs not only offer tax filing assistance to underserved communities but also incorporate tax clinic advice, allowing future professionals to gain hands-on experience in navigating tax law and financial reporting.

Cross-disciplinary collaboration in financial reporting

One area where the blending of legal and accounting expertise is particularly essential is contingency reporting in financial statements. Contingency reporting involves assessing and disclosing potential liabilities and uncertain events that may impact a company’s financial standing. Effective disclosure in this area requires coordination among managers, attorneys and auditors to ensure compliance with accounting standards and regulatory requirements.

Attorneys play a vital role in advising management on legal obligations and potential risks, while auditors ensure these liabilities are accurately reflected in financial statements. Misalignment or miscommunication between these professionals can lead to misstatements, regulatory penalties and legal disputes. As financial reporting and regulatory environments grow more complex, the need for seamless collaboration between accountants and attorneys will only intensify.

The future of law and accounting integration

The evolving global marketplace demands professionals who can navigate both legal and financial landscapes with proficiency. As businesses face increased regulatory pressures, cross-border transactions and intricate tax structures, the convergence of law and accounting will become even more significant. Future professionals will need to possess interdisciplinary expertise to address challenges that do not fit neatly into a single domain.

KPMG’s initiative to establish KPMG Law US reflects this broader trend. Similarly, the integration of legal education with accounting principles in law schools represents an important step toward preparing future attorneys for the realities of modern business. By fostering collaboration between legal and financial professionals, institutions and firms can ensure more accurate reporting, better compliance and, ultimately, stronger financial and legal stewardship.

As we move forward, the synergy between law and accounting will continue to shape the way businesses operate, reinforcing the need for interdisciplinary education, strategic collaboration and innovative professional solutions.