KPMG pulls report on AI usage due to apparent hallucinations

Professional services firm KPMG has produced a report entitled ‘Redefining Excellence in the age of agentic AI’, after numerous organizations said the report’s claims about their AI use were untrue.

Research group GPTZero noted a number of inaccuracies in the report, which was published in October 2025. GPTZero told the FT that the inaccuracies stemmed from AI hallucinations. In other words, the professional services company appears to have used AI to help write a report on AI.

UBS, the UK National Health Service, the Swiss Federal Railways and Transport for London all told the FT that the report’s claims about their AI use were untrue or misleading. A KPMG spokesperson said the company removed the report from its websites while it conducted 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Last month, EY has withdrawn a report on loyalty programs which seemed to contain fake footnotes and AI hallucinations.