via TechCrunch AI
KPMG Withdraws AI Report Over Apparent Hallucinations
Professional services firm KPMG has withdrawn a report titled “Redefining excellence in the age of agentic AI” after multiple organizations stated that the report’s claims about their AI usage were inaccurate.
Research group GPTZero identified several errors in the report, which was published in October 2025. GPTZero told the Financial Times that the inaccuracies likely stemmed from AI hallucinations — meaning KPMG may have used AI tools to help write the report about AI itself.
Organizations including UBS, the UK’s National Health Service, Swiss Federal Railways, and Transport for London told the FT that the report’s assertions regarding their adoption of AI were either false or misleading. A KPMG spokesperson confirmed that the firm removed the report from its websites while conducting an internal investigation.
“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,” the spokesperson said.
This incident follows a similar episode in 2025, when EY withdrew a report on loyalty rewards programs that appeared to contain fabricated footnotes and AI hallucinations. As of early 2026, these cases underscore a growing concern within the professional services industry about the risks of relying on generative AI without adequate human review.