KPMG pulls report on AI usage due to apparent hallucinations
Quick Answer
KPMG has retracted its report on AI usage due to significant inaccuracies, highlighting the unreliability of AI-generated information.
Quick Take
The report's findings were marred by hallucinations, raising concerns about the trustworthiness of AI models in corporate settings.
Key Points
- KPMG's report was retracted due to AI-generated inaccuracies.
- The term 'hallucinations' refers to AI's tendency to produce false information.
- Concerns arise over the trustworthiness of AI in corporate applications.
- This incident underscores the need for human oversight in AI usage.
- Reliability issues could impact decision-making processes in businesses.
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Professional services firm KPMG has pulled a report titled “Redefining excellence in the age of agentic AI,” after numerous organizations said the report’s claims about their AI usage were untrue.
Research group GPTZero identified a number of inaccuracies in the report, which was published in October 2025. GPTZero told the Financial Times that the inaccuracies stemmed from AI hallucinations. In other words, the professional services firm appears to have used AI to help write a report about AI.
UBS, the U.K.’s National Health Service, Swiss Federal Railways, and Transport for London all told the FT that the report’s claims about their AI usage were either untrue or misleading. A KPMG spokesperson said the firm removed the report from its websites while conducting its own 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.
Last month, EY withdrew a report on loyalty rewards programs that appeared to include fake footnotes and AI hallucinations.
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