KPMG Report Cited AI Hallucinations

A recent report by KPMG, a major consulting firm, has been removed following revelations of significant AI hallucinations in its citations. Researchers found that approximately 40 out of 45 citations within the report appeared to be fabricated or inaccurate. These hallucinations included false claims about companies employing agentic AI for customer service and real-time household analytics.

The problematic report, which has since been taken down, had already influenced several customer service publications and a Czech newspaper. Worryingly, AI models such as OpenAI's ChatGPT and Google Gemini were also referencing the flawed KPMG report as a resource on customer experience.

This incident underscores concerns about AI-generated content. A spokesperson for KPMG stated the company is reviewing the circumstances and emphasized adherence to guidelines for responsible AI use, including human oversight. This situation echoes a similar event in October 2025, where Deloitte faced scrutiny for a report containing incorrect citations and a fabricated quote.

Moreover, the impact is felt by everyday workers. A recent survey indicated that over 40% of US desk workers have encountered "workslop," or low-quality AI-generated content, in the past month.