KPMG Withdraws AI Report Amid Hallucination Claims

KPMG has retracted its October 2025 report titled 'Redefining Excellence in the Age of Agentic AI' after research group GPTZero identified significant inaccuracies attributed to AI hallucinations. The report claimed various organizations, including UBS and Transport for London, utilized AI in ways that were either misleading or false. GPTZero's review found that only 5 out of 45 citations were accurate, raising concerns about the report's credibility. KPMG is currently investigating the publication process and has removed the report from its websites. This incident follows a similar situation where EY withdrew a report due to AI-generated inaccuracies. The consulting firm emphasized the importance of human oversight in validating AI-generated content.

Key Points: • KPMG's AI report cited only 5 accurate references out of 45. • Numerous organizations disputed the report's claims about their AI usage. • KPMG has initiated an investigation into the report's publication.