KPMG Pulled Its Own AI Report After Getting Caught Hallucinating
KPMG has quietly removed a report it published last October titled “Redefining Excellence in the Age of Agentic AI,” after multiple major organizations came forward saying the report made false claims about their AI usage. The KPMG AI hallucinations issue was flagged by research group GPTZero, which told the Financial Times that the errors appeared to stem from AI generating content the firm failed to properly verify.
Among the organizations that pushed back were UBS, the UK’s National Health Service, Swiss Federal Railways, and Transport for London, all of whom told the FT that the report’s portrayal of their AI activity was either false or misleading. The irony is hard to miss: one of the world’s biggest professional services firms apparently used AI to write a report about AI, and it showed.
A KPMG spokesperson said the report was taken down from the firm’s websites while an internal investigation is underway. “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 added.
This is not an isolated case. Just last month, rival firm EY withdrew its own report on loyalty rewards programs after it was found to contain fabricated footnotes and similar AI hallucinations. The back to back embarrassments raise real questions about how thoroughly big consulting firms are checking AI generated content before publishing it under their name.
