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KPMG Yanks AI Report: Hallucinations Strike

KPMG, the prominent professional services firm, has withdrawn a report titled “Redefining excellence in the age of agentic AI” following widespread co

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Originally reported bytechcrunch

KPMG, the prominent professional services firm, has withdrawn a report titled “Redefining excellence in the age of agentic AI” following widespread complaints from various organizations asserting that the report’s claims regarding their adoption and use of artificial intelligence were inaccurate.

The research collective GPTZero highlighted multiple factual errors within the document, originally published in October 2025. Speaking to the Financial Times, GPTZero attributed these inaccuracies to what are commonly known as AI hallucinations. This revelation suggests that KPMG, a firm advising on professional services, itself utilized AI in the creation of a report examining the very subject of AI.

Several high-profile entities, including UBS, the UK’s National Health Service, Swiss Federal Railways, and Transport for London, independently informed the Financial Times that the report’s assertions about their AI integration were either entirely false or significantly misleading. A spokesperson for KPMG confirmed the removal of the report from its digital platforms, stating that the firm is currently conducting its own thorough investigation into the matter.

The spokesperson further emphasized KPMG’s internal standards, stating, “We expect all our people to follow our guidelines on the responsible use of AI, including human oversight to validate content and verify independent sources.”

This incident follows a similar occurrence last month when another major professional services firm, EY, retracted a report focused on loyalty rewards programs. That report was found to contain what appeared to be fabricated footnotes and instances of AI-generated hallucinations.

#AI News#KPMG#AI Hallucinations#Agentic AI#Professional Services
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