Cortea, a Berlin-based AI firm with big ambitions for the UK market, has secured a major £10m funding boost – and it's come from an unlikely source: Larry Bradley, former global head of audit at KPMG. The investment is part of Cortea's drive to revolutionise the audit sector, which is struggling with a chronic shortage of skilled professionals.
The UK's audit industry has long grappled with the challenges of keeping pace with increasingly complex reporting demands and tightening regulatory scrutiny. With this new funding, Cortea plans to expand its presence in the UK, bringing its AI-powered solutions to mid-sized audit firms that are particularly hard hit by labour shortages. Founded just two years ago by Valentin Neumann and Philipp Berriche, Cortea has developed 'Audit Quality Agents' – AI tools designed to meticulously review audit reports, identify inconsistencies, and flag potential errors.
These innovative agents can integrate with both the operations of the 'Big Four' firms and smaller boutique practices. By automating routine tasks and enhancing quality assurance, Cortea hopes to help UK audit firms meet rising demand, scale capacity, and improve standards – a goal that's music to the ears of those struggling to recruit qualified professionals in an era dominated by AI.
Cortea's approach is distinct from more general-purpose AI models. Instead, it focuses on addressing the unique challenges faced by auditors when using AI, including liability and quality assurance. "Simply plugging in a foundational AI model doesn't get you very far," explains Neumann. Cortea's solutions are designed to bridge this gap, providing specific tools for testing and verifying results.
With its latest funding round now totalling £12.9m – following an earlier investment of approximately £2.6m from Cherry Ventures and Google DeepMind – Cortea is well-positioned to take on the audit landscape with a bold new vision: harnessing AI to create better, more efficient audits that are free from errors.