KPMG Withdraws AI Report Amid Concerns Over Hallucinations
Professional services firm KPMG has recently withdrawn its report titled "Redefining excellence in the age of agentic AI" after several organizations disputed the accuracy of its claims regarding their AI usage. The report, published in October 2025, faced scrutiny for containing numerous inaccuracies attributed to AI hallucinations, a term used to describe misleading or false information generated by artificial intelligence.
The research group GPTZero highlighted these inaccuracies, indicating that KPMG may have relied on AI tools to draft the report about AI. Notable organizations such as UBS, the UK’s National Health Service, Swiss Federal Railways, and Transport for London reported that the claims made in the report were either false or misleading. In response, a KPMG spokesperson stated that the report has been taken down while the firm conducts its investigation.
KPMG emphasized the importance of adhering to guidelines for the responsible use of AI, including the necessity of human oversight to validate content and confirm independent sources. This incident follows another recent occurrence where EY withdrew a report on loyalty rewards programs that reportedly included fictitious footnotes and similar AI-generated inaccuracies.
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