KPMG pulls report on AI usage due to apparent hallucinations
KPMG has retracted a report on AI usage, "Redefining excellence in the age of agentic AI," after several organizations disputed its claims. The inaccuracies, potentially stemming from AI hallucinations, emerged despite KPMG's guidelines for responsible AI use and human oversight.
KPMG, a leading professional services firm, has withdrawn its report titled "Redefining excellence in the age of agentic AI." This decision follows numerous organizations, including UBS, the UK's National Health Service, Swiss Federal Railways, and Transport for London, refuting the report's claims regarding their AI implementation.
Research group GPTZero identified significant inaccuracies within the report, which was originally published in October 2025. GPTZero suggested to the Financial Times that these errors likely originated from "AI hallucinations," implying that AI was used in the report's creation about AI itself.
A KPMG spokesperson stated that the firm removed the report from its platforms to conduct an internal investigation. The spokesperson emphasized KPMG's commitment to responsible AI usage, adding, "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."
This incident is not isolated, as EY also retracted a report on loyalty rewards programs last month due to similar issues, including fake footnotes and AI hallucinations.
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