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Good morning, friends. KPMG set a 75% AI usage target, and employees hit it by asking the model what the weather was. We dig into what firms should measure instead. Also: three states eased CPA licensing rules, the SEC moved to rescind its 2024 climate disclosures, and a vendor-funded survey says tax firm AI adoption nearly doubled.
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In This Morning's Issue
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Your Firm's AI Adoption Metric Is Probably Broken
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No. 01
| AI ADOPTION
| Lead Story
Your Firm's AI Adoption Metric Is Probably Broken
KPMG set a firm-wide target of 75% AI usage. Employees hit it by asking the model what the weather was. Separately, only 42% of organizations say they can audit the AI decisions built into their finance workflows. Those two numbers point to the same gap: clearing your AI targets doesn't mean the work is any better.
The Signal — Adoption rates measure activity, not results. A high usage number reassures partners that AI is working, even when client work goes untouched. The 42% auditability figure is the sharper problem: if a client or regulator asks which outputs AI touched, most firms can't answer. That's not a technology gap. It's a control gap. What to watch: The governance question coming next is output logs. Who used the tool matters less than what it produced and whether a human reviewed it before it left the firm.
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External links — the most worth-clicking AI items from around the web this week.
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Workflow of the Week
Gusto Cofounder (gusto.com)
Gusto launched Gusto Cofounder, an AI teammate inside its payroll platform that answers payroll questions, sends compliance nudges and handles routine tasks for small business owners. If your small business clients are already on Gusto, they'll see it soon. Worth knowing what it does before they ask.
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The wait is over. Whispers of Nystad is out now. A historical thriller where a coded letter can end a war. Follow Elsa across a frozen Baltic frontier as empires collide and every message carries a price. Available in paperback and ebook.
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From the Archive
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That's the dispatch.
If something here changed how you think this week, hit reply and tell me. I read every one.
— Jim
Jim Smart · Founder, Nexairi
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— The Letters Desk —
Write back. We're listening.
Every reply lands in the editor's inbox. Tell us what hit, what missed, or what we should chase tomorrow — one sentence is plenty.
Or just hit reply. [email protected]
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