KPMG pulls AI report after organizations expose widespread hallucinations and fake citations
11 Sources
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KPMG pulls report on AI usage due to apparent hallucinations
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
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KPMG Allegedly Published AI Report Filled With Hallucinations
Are you interested in learning from human experts about how AI could impact the future of work and customer experience? If you are, it turns out that you could have unknowingly been getting some of your responses from an AI. KPMG, one of the largest consultancy firms in the world, is accused of
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KPMG's AI report becomes an accidental demo of AI hallucinations
GPTZero claims only 5 of the report's 45 citations matched their sources, raising questions about how the Big Four's AI study was assembled KPMG's October 2025 report on the wonders of agentic AI has been accused of demonstrating one of the tech's less desirable talents: making things
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A report on the benefits of AI was reportedly full of AI hallucinations - Engadget
It was published by KPMG, one of the world's 'Big Four' accounting firms. In October last year, KPMG published a report titled Total Experience: Redefining Excellence in the Age of Agentic AI, which was about how companies are using AI to cater to customers' needs. KPMG is one of the "Big Four"
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KPMG pulled its AI report after UBS, the NHS, and others said its claims about them were made up
KPMG has pulled a report titled "Redefining excellence in the age of agentic AI" after multiple organisations said the claims it made about their AI usage were either untrue or misleading. UBS, the UK's National Health Service, Swiss Federal Railways, and Transport for London all told the Financial
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A major KPMG report on AI was found to be chock-full of...AI hallucinations
* Only five of the 45 citations accurately reflected real sources * Some were totally fake, others included "garbled" attributions and titles * GPTZero argues vibe citations have consequences, with reports disseminated globally GPTZero investigators have revealed how major government reports,
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Consulting Firm's Report on How Awesome AI Is Found to Contain Idiotic AI Hallucinations
Can't-miss innovations from the bleeding edge of science and tech A new report that was supposed to be a shining panegyric to how useful AI is was caught loaded with fake claims that appear to be AI hallucinations, the Financial Times reports -- a blunder that may have unintentionally demonstrated
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KPMG Sells 'AI Trust' to Clients -- but It Just Pulled Its Own Report Over Alleged AI Hallucinations
KPMG advises companies on responsible uses for artificial intelligence. Yet, its own report did not meet that standard. KPMG withdrew a report about agentic AI after UBS, NHS Greater Manchester, Swiss Federal Railways, and Transport for London said information about their use of the technology was
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Inside KPMG's AI report scandal: False claims, bogus case studies and hallucinated success stories
KPMG has retracted a global report after major organizations like UBS and the NHS denied claims of using AI for operational transformations. The report, which contained fabricated case studies and AI-generated inaccuracies, was flagged by GPTZero and the Financial Times. An internal investigation
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KPMG Withdraws AI Usage Report Because Its AI May Have Hallucinated
This isn't the first time that these professional services are being caught out for using AI slop in their reports Research and professional services company KPMG had egg on its face last week when they had to recall a report titled "Redefining Excellence in the Age of Agentic AI" after several
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KPMG AI Report Row: Firms Expose False Claims, Forcing Sudden Withdrawal
Global consulting firm KPMG has removed its Agentic AI report after several companies raised serious concerns about its content. The report claimed that many organizations used advanced AI systems, but those organizations later denied the claims. The issue started when the research group GPTZero
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One of the world's largest consulting firms withdrew its October 2025 report on agentic AI after multiple organizations, including UBS and the UK's National Health Service, said claims about their AI usage were false. GPTZero's investigation revealed that 40 of 45 citations appeared to be AI hallucinations, raising questions about human oversight in professional services.
KPMG Withdraws AI Report Amid Hallucination Scandal
KPMG has pulled its October 2025 report titled "Redefining excellence in the age of agentic AI" after multiple organizations disputed the accuracy of claims made about their AI deployments
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. The professional services firm, one of the Big Four accounting and consulting companies, removed the document from its websites following revelations that the AI report contained widespread AI hallucinations and fake citations2
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Source: Analytics Insight
UBS, the UK's National Health Service, Swiss Federal Railways, and Transport for London all told the Financial Times that the report's descriptions of their AI usage were either untrue or misleading
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. UBS specifically stated that KPMG's claims about integrating agentic AI across investment advisory, risk management, and compliance monitoring were "factually incorrect"4
.GPTZero Uncovers Systematic Inaccuracies
AI-safety firm GPTZero conducted a forensic review of the retracted report and found that only five of its 45 citations correctly pointed to the cited source
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. The remaining 40 citations ranged from mangled and misleading to partially fabricated or too vague to verify. GPTZero introduced the term "vibe citing" to describe this phenomenon, where AI-generated content appears to stitch together fragments of real sources or invent titles that look convincing until verified2
.The investigation revealed that approximately half of the factual claims in the paper were false, unsupported, or attributed to the wrong source
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. In one example, the report claimed that Japanese East Japan Railway Company (JR East) was using agentic AI for customer service, linking to a 2019 press release from half a decade before agentic AI became mainstream2
. Another false claim stated that Emirates airline launched a mobile chatbot named Sara that could converse with passengers and change their flights, when in fact Sara was a robot assistant introduced in 2023 that lacked flight-booking capabilities3
.Risks of AI-Generated Content Without Human Oversight
Source: Engadget
GPTZero alleges that an LLM research tool was likely asked to find case studies of companies using agentic AI worldwide, and "this tool seems to have conflated sources, exaggerated claims, and injected references to agentic AI that were copied into the final report without verification"
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. Researchers suspect no human at KPMG double-checked the citations, claims, or sources before publication2
.The risks of AI-generated content extend beyond the original document. The now-removed report was referenced by multiple customer service publications, a major Czech Republic newspaper, and is being cited as a resource by OpenAI's ChatGPT and Google Gemini. GPTZero chief executive Edward Tian warned that error-riddled papers from trusted sources like the Big Four could "poison the well of information" and lead to second-hand AI hallucinations
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.Related Stories
Pattern of AI Misuse in Professional Settings
KPMG is not alone in facing reputational damage from unchecked AI-generated content. Last month, EY withdrew a report on loyalty rewards programs that appeared to include fake footnotes and AI hallucinations
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. In October 2025, the Australian government ordered Deloitte to refund a portion of the $290,000 it was paid for a compliance report after discovering several incorrect citations that appeared to be AI hallucinations and a fabricated quote.The problem is already affecting everyday workers. More than 40% of US desk workers reported receiving "workslop"—low-quality AI-generated content—in the past month, according to a survey by the Stanford Social Media Lab and BetterUp Labs.
Questions About KPMG's AI Integration
Source: The Register
A KPMG spokesperson stated that "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"
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. The firm is now reviewing the circumstances surrounding the publication.For KPMG's clients, the incident raises concerns about oversight standards. KPMG partnered with Anthropic earlier this year to deploy Claude across all 276,000 staff, embedding AI into advisory, audit, and tax work. The pulled report serves as a preview of what happens when AI integration outpaces verification processes, highlighting the critical need for human oversight in professional services to prevent misinformation from spreading through trusted channels.
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