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Corporate finance leaders are grappling with a new challenge as artificial intelligence (AI) providers increasingly shift to usage-based pricing, making costs harder to predict, monitor, and control than traditional software subscriptions. According to a forthcoming KPMG survey, only 26% of companies have a comprehensive view of their AI spending, while 50% report partial visibility and 22% have little or no visibility until bills arrive. The issue is becoming more pressing as businesses expand their use of AI agents and generative AI tools, with some organizations reportedly exhausting annual token and cloud-computing budgets within months. Unlike conventional software licenses, many AI services charge customers based on token consumption, a measure of computing usage. Major providers including OpenAI, Anthropic, Microsoft, and Salesforce have adopted pricing models that tie costs directly to usage, creating greater flexibility for customers but also shifting financial risk onto them. Several companies are introducing controls to manage spending. Life360 is developing tools to track token consumption more closely, while buy-now-pay-later provider Affirm monitors AI usage almost in real time after seeing a sharp increase in token consumption driven by AI-assisted software development. 

 

Wall Street Journal

Expense Fraud Is Evolving Beyond Traditional Audits

Finance teams are under growing pressure to reduce risk, improve efficiency, and do more with fewer resources, all while financial activity becomes harder to monitor across fragmented systems and rising transaction volumes. At the same time, expense fraud is becoming more sophisticated through AI-generated receipts, subtle policy abuse, and tactics designed to evade traditional audits.

Join Oversight’s Resolution Services team to learn why manual reviews and rules-based approaches are no longer enough and how leading organizations are using AI-powered Finance Risk Intelligence to identify risky transactions earlier, prioritize true risk, and strengthen controls through continuous operational intelligence.

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Reuters reports that U.S. states including New York and California are preparing a lawsuit to block Paramount Skydance's $110bn acquisition of Warner Bros, in what it says would mark the boldest move yet by the states in their effort to be at the forefront ​of U.S. antitrust enforcement. Not all lawsuits seeking to block mergers succeed, but they can delay the consummation of deals by months if a judge issues an order pausing the merger while ​the case plays out, Reuters observes.

 

Reuters

Research by Unit4 reveals that over 25% of client-facing staff in professional services firms spend significant time on manual administrative tasks instead of core client work. The report, commissioned by Pierre Audoin Consultants, found a quarter of professional services organisations have yet to automate more than 20% of their core systems. Such operational inefficiencies are causing frequent project delays for 30% of firms worldwide. Donna Dobson, director of professional services at Unit4, noted: "Professional services firms are facing possibly the biggest inflection point in a lifetime as technology disruption and volatile economic conditions encourage clients to re-evaluate their use of consulting expertise."

 

City AM

The U.S. Department of the Treasury and the IRS have announced plans to issue regulations expanding the application of excise taxes on excessive executive compensation and parachute payments at tax-exempt organizations under the One, Big, Beautiful Bill (OBBB). Under previous rules, the tax applied only to the five highest-paid employees of an applicable tax-exempt organization (ATEO). The OBBB significantly broadens the scope, extending the tax to any employee earning more than $1m annually, as well as individuals receiving excess parachute payments. According to Notice 2026-36, the revised definition of a “covered employee” will apply to individuals who worked for an ATEO during any tax year beginning after December 31st 2016, and on or before December 31st 2025. It will also apply to employees of ATEOs in tax years beginning after December 31st.

 

The Accountant Online

The U.S. labor market continued to show resilience in May, adding 172,000 jobs, well above economists’ expectations of 80,000, while the unemployment rate remained unchanged at 4.3%. The Labor Department report stated that leisure and hospitality led hiring with 70,000 new jobs, supported by seasonal demand and preparations for the upcoming World Cup. Healthcare and social assistance added 47,000 positions, while local government employment rose by 55,000 jobs. Construction also posted gains for a third consecutive month. Several sectors saw declines, however, including retail, finance, and information services. Air transportation employment fell by nearly 9,000 jobs, reflecting the impact of Spirit Airlines’ collapse. The report also included significant upward revisions to prior months, with March job growth revised to 214,000 and April revised to 179,000, indicating stronger labor market momentum than previously reported. The stronger hiring data has shifted attention at the Federal Reserve from potential interest rate cuts toward the possibility of future rate increases, particularly as inflation pressures persist. Treasury yields rose following the report as investors increased expectations that the Fed could tighten policy later this year.

 

CNN

USA Today

Washington Post

Wall Street Journal

OpenAI is preparing the biggest overhaul of ChatGPT since its launch ahead of a planned listing, intending to transform the chatbot into a “superapp” that combines coding tools and AI agents.

 

Financial Times

Nvidia CEO Jensen Huang has said ​the company is partnering with South Korean tech ​conglomerate LG Group ​on humanoid robots. "We are ​working with them in ​motor technology as well as mechanical systems so ​that we can ​bring together humanoid robotics and ‌the ⁠future of robotics," Huang said after meeting ​with LG ​Group ⁠Chairman Koo Kwang-mo in Seoul.

 

Reuters

Western Asset Management Company (Wamco), a subsidiary of Franklin Resources, has agreed to pay a $100m civil penalty to settle SEC allegations related to a purported trade allocation, or “cherry-picking,” scheme involving former co-chief investment officer Kenneth Leech. The settlement resolves investigations by both the SEC and the U.S. Department of Justice, according to Franklin Resources. Wamco did not admit wrongdoing and said it agreed to the settlement as a business decision to avoid prolonged litigation. Leech has pleaded not guilty to related criminal charges filed in New York and continues to contest the allegations.

 

Financial Times

Reuters

Kathy Ruemmler, Goldman Sachs’ general counsel, is staying with the bank after David Solomon, Goldman’s chief executive, asked her to remain as an adviser to clients. The unexpected move comes after Ruemmler resigned in February following revelations about her ties to the late convicted pedophile Jeffrey Epstein. At the time, Solomon described Ruemmler as an “extraordinary general counsel” who “will be missed.” Solomon has been steadfast in his support for Ruemmler and has privately maintained that he didn’t think she did anything wrong or inappropriate amid scrutiny over her interactions with Epstein.

 

Bloomberg

Financial Times

Business leaders have become less optimistic about the U.S. and global economies, but confidence in their own organizations remains relatively strong, according to the latest AICPA and CIMA Economic Outlook Survey. U.S. economic optimism fell from 39% in the first quarter to 32% in the second quarter, while global optimism declined to 19%. However, 49% of executives said they remain optimistic about their own companies' prospects, reflecting confidence in underlying business fundamentals despite ongoing uncertainty. The survey found that cost pressures have re-emerged as a leading concern, with employee benefits, labor expenses, inflation, and rising materials costs weighing on businesses. Cybersecurity and global economic conditions are also drawing increased attention, while concerns about domestic politics and regulation have eased somewhat. Despite the more cautious outlook, 54% of executives still expect their organizations to grow over the next 12 months, and hiring plans remain largely stable. However, 51% of respondents now believe the U.S. is either already in a recession or will enter one by the end of 2026, up from 36% in the previous quarter.

 

CPA Practice Advisor

Asia-Pacific is expected to account for around two-thirds of global new retail sales over the next five years, supported by the continued expansion of e-commerce, according to Deloitte. However, analysts warn that the conflict in the Middle East is weighing on consumer and business confidence through higher energy costs and ongoing supply chain disruption. Deloitte Asia-Pacific retail and consumer products sector leader Anand Ramanathan said rising borrowing costs and tighter financial conditions are reducing spending capacity for both consumers and businesses, potentially dampening discretionary retail demand even in high-growth markets. Despite these challenges, a recent Deloitte survey found Asia-Pacific consumer industry chief financial officers remain cautiously optimistic. While 84% expect the conflict to negatively affect their businesses, 81% anticipate revenue will remain stable or increase over the next 12 months. The survey also highlighted efforts across the region to diversify energy sources in response to oil and gas supply shortages.

 

South China Morning Post

OECD head Mathias Cormann has warned governments around the world not to go it alone in taxing large multinationals, including U.S. tech giants, as more countries eye digital services duties.

 

Financial Times