KPMG Pulls AI Report Over Hallucinated Claims
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- KPMG pulled its October 2025 report "Redefining excellence in the age of agentic AI" after organizations disputed claims about their AI usage, removing it from its websites while conducting its own investigation.
- GPTZero identified numerous inaccuracies in the report and told the FT the errors stemmed from AI hallucinations — meaning the firm appears to have used AI to help write a report about AI.
- UBS, the UK's NHS, Swiss Federal Railways, and Transport for London each told the FT that the report's claims about their AI usage were either untrue or misleading.
- A KPMG spokesperson said the firm "expects all our people to follow our guidelines on the responsible use of AI, including human oversight to validate content and verify independent sources."
- EY withdrew a separate report on loyalty rewards programs last month that appeared to include fake footnotes and AI hallucinations — the second Big Four firm to retract an AI-compromised report in recent weeks.
Why it matters: A Big Four advisory firm published a report on agentic AI that itself contained AI-hallucinated content, directly undermining client trust in the firm's AI expertise. With peer firm EY hitting a near-identical incident last month, the two retractions point to a credibility gap in Big Four reports produced with AI assistance.