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KPMG AI Report Sparks Hallucination Scandal
14 Jun
Summary
- KPMG report on AI usage was withdrawn due to inaccuracies.
- Organizations like UBS and NHS disputed the report's claims.
- The report reportedly suffered from AI hallucinations.
Professional services firm KPMG has withdrawn a report examining artificial intelligence after discovering significant inaccuracies.
The report, titled "Redefining excellence in the age of agentic AI," was published in October 2025 and faced criticism from numerous organizations.
Research group GPTZero highlighted that the report contained factual errors, attributing them to AI hallucinations. This suggests KPMG may have employed AI in generating the report about AI technologies.
Institutions such as UBS, the UK's National Health Service, Swiss Federal Railways, and Transport for London publicly stated that the claims made about their AI adoption were either untrue or misrepresented.
KPMG has removed the report from its online platforms and initiated an internal investigation. A spokesperson emphasized the firm's commitment to responsible AI use and the necessity of human oversight for content validation.
This incident follows a similar withdrawal by EY last month of a report concerning loyalty rewards programs, which also appeared to contain fabricated footnotes and AI-generated inaccuracies.
