KPMG has made history by becoming the first of the Big Four accounting firms to gain authorization to practice law in the United States. The Arizona Supreme Court granted approval for KPMG Law US, an independently managed subsidiary, to operate within the state under an alternative business structure (ABS). This decision follows Arizona's 2020 regulatory reforms that permit non-lawyers to have an economic interest in law firms, aiming to enhance access to legal services.

Rema Serafi, KPMG's vice chair for tax, stated, "KPMG is uniquely positioned to transform the delivery of legal services." The new law firm plans to offer technology-driven legal services, including legal operations consulting and managed services, while adhering to stringent ethical standards. To prevent conflicts of interest, KPMG Law US will not provide legal services to clients audited by KPMG LLP.

This move signifies a significant shift in the U.S. legal landscape, potentially paving the way for other Big Four firms to explore similar ventures. Observers note that KPMG's established global legal presence and technological capabilities could offer a competitive advantage in delivering integrated legal and consulting services to corporate clients.

While Arizona leads with its ABS program, other states like Utah have introduced similar but more limited reforms. Efforts in states such as California have faced challenges due to concerns about maintaining professional ethics. The success of KPMG Law US may influence future regulatory considerations and the broader integration of multidisciplinary services in the legal profession.